The market perception of cryptocurrencies has been changing positively. Bitcoin and other digital assets have emerged as top choices for investors due to their low correlation with other traditional asset classes. Traditional markets have not always been steadfast in the payment of returns to investors. On April 16, 2020, a report from Investors Chronicle, stated that 45% of the UK companies opted not to pay dividends.
Traditional markets and institutions have shifted towards cryptocurrencies for refuge with financial institutions starting to believe in this new asset portfolio ever since there was a spike in BTC computational power establishing the trust of the investors. Statista has revealed in its report that blockchain and the market for cryptocurrencies will rise exponentially to become a US$23.3 billion economy by 2023. The trend will be primarily driven by the adoption of blockchain in the insurance and supply-chain sector.
However, investors need to look out for some parameters before investing in crypto. Some of the parameters are listed below;
1. Have a clear understanding of the industry: Whether you’re interested in a career as a blockchain developer, as an investor or you just want to keep up with the latest trends in tech. It is very important to understand the blockchain industry. Being a recent currency means constant addition of terms and innovation, getting acquainted with the latest trends will help you on your journey in crypto investment.
2. Project Whitepaper: The whitepaper is a very revealing aspect of any investment opportunity in crypto. When considering a crypto investment, you should consider checking out their whitepaper, a document that all legitimate crypto investments should have. The whitepaper conveys a detailed outline of the project’s principles, vision and underlying technology. Having a clear perception of the document will help you determine whether you should invest or not. It is important that every investor should use the whitepaper as a guide
3. Invest based on fact: Deciding on a project to invest in is based on critical decisions and not on the hype surrounding the project. It is paramount that investors should be able to differentiate between a realistic project and an unrealistic one, crypto investment is based on a calculated risk-to-reward ratio. Separate the noise from the fact and use the right channel to ask questions, relying on only what the crowd is saying about a project is not a good idea. Have a personal understanding by asking the right people, get equipped with the right tools and knowledge before investing
4. Project Team: The leaders of an investment play an intricate part in the overall success of the project. Nowadays, it is not often that we get to see a project lead working behind a mask, this is what many consider a red flag. A good project must have a face, plus the expertise needed to actually navigate a project. Projects in the crypto space are known to excel with the right connection.
Taking financial risks is nerve-racking, however, numerous opportunities lurk in the murky environment of countless projects. Finding the right one takes time and effort, it is also advisable not to go into crypto investment if you’re a nervous individual because it is highly volatile and unpredictable. Nevertheless, knowing how to research a project can be fun and rewarding.
About BTTCPAD
BTTCPAD is a platform designed to stimulate blockchain adoption. Built On BitTorrent Chain, the platform strives to ensure project success, and everything you need to know about crypto. Our focus is to bridge the growing gap between investors, project owners, community, technology veterans, and critics to help new projects build for the future.
