Step by Step Guide on Researching Before Investing in Crypto in 2021
For anyone connected with the Internet, it’s hard to keep their eyes off from the dazzle of cryptocurrency. Much of the credit goes to bitcoin and the people behind it, primarily, Satoshi Nakamoto. By the time of writing this post (March 23, 2021, 1.09 PM IST), the number of cryptocurrencies stood at 8,915 across 36,706 markets. The total market capitalization was to the tune of $1,683,639,118,877.
Recommendations and opinions of friends and family matter, but your decision should not be swayed by the rumours. Here is a step-by-step guide on performing thorough research before investing in crypto.
Check Official Website
An official website could be your go-to place for general, legal, economic, transaction, mining, and support.
The fundamental information includes the origin of the cryptocurrency, the people behind it, who control the network, how it works, real-world use-cases, and similar information.
Next, know whether it has got approval from legal regulators in your country or anywhere, how the cryptocurrency network protects your interest, and so on.
Under Economic value, you should know how the coins are created, economic value, what determines its price, what limitations it has, and much more. You can also know about the exchanges where you can buy or sell the cryptocurrency.
Know how transactions are confirmed, how much is the delay time, transaction fees, and similar details.
If you want to act as a cryptocurrency miner, the official website may help you learn the mining process, limitations and incentives.
Cryptocurrency security helps you learn the security aspects.
Most of the cryptocurrency websites have the Help section to allow users to see support from the available resources, community, and FAQs.
Check Independent Secondary Resources
Independent resources mean anything that is not published by the cryptocurrency network, and where there are strict editorial guidelines. Popular sources are CoinCapMarket, CoinGecko, and CoinList. Most of them are online, so it’s easy for you to assess the worth of the coin. You can know indicators like price, price trends, market capitalization, volume, and circulating supply of the coin. You can also get a brief introduction to cryptocurrency.
Find Reliable CryptoExchanges
It’s important to know reliable crypto trading exchanges where you can trade in the cryptocurrency. Pick an exchange with high liquidity, low transaction fees, easy payment and trading options, high security, global presence, and agility. PCEX Member is one of the best cryptocurrency trading exchanges in India. It allows buyers to use INR as fiat currency and perform all the actions needed in a quick and easy manner. The trading platform also has a knowledge bank with resources by experts to help you invest wisely and make the best of the market volatility. It also provides technical analysis knowledge to help you reduce risk and hedge your investment.
Know Trading Signals
Trading signals are insight and recommendations on buying, selling, and trading cryptocurrencies to maximize profits. They are offered by experienced traders and skilled analysts with extensive backgrounds in crypto trading. Find reliable sources of such crypto signal groups or communities to know what is good and what not-so-good for you. However, before buying a paid subscription from a trading signal website, make sure you validate their authenticity by their existing subscribers. You may also check the recommendations of your friends and family regarding the same.
Social communities are a great way to know about the performance of a crypto asset and the investor’s sentiment about particular crypto assets and instruments. Bitcoin Forum- Index, Telegram, Discord, Reddit, and CoinDCX’s telegram channel are some of the popular online forums or communities that you should join to know where the market is headed to.
Go for a Cryptocurrency Wallet
The selection of a wallet (hardware or software) to store the public and/or private keys for cryptocurrency transactions is a good idea to safeguard your asset from online fraudsters. Apart from storing the keys, a cryptocurrency wallet can provide a host of functionalities like encryption, signing-in/signing-out, etc. Review the pros and cons, known or unknown vulnerabilities associated with a wallet.
Go for a mobile (iOS, Android), or desktop wallet (Linux, Windows Mac). Mobile wallets are portable and convenient; ideal when making transactions face-to-face. They can use QR codes to make quick and seamless transactions.