5 Things You Should Know Before Investing in Cryptocurrency
By Darius Eghdami, CEO of Block X
There is no doubt that cryptocurrencies have created a new market for investment. With digital currencies such as Bitcoin reaching values of over $19,000USD, cryptocurrencies are of extreme interest to mainstream media, consumers, and investors. Those on the forefront of investing see the value of adding these high-risk items to their investment portfolios.
While expert investors have a propensity toward investing in high-risk, high reward opportunities, the risks associated with cryptocurrency investments are unique in nature. While interest in cryptocurrencies is skyrocketing, the associated regulations around digital currency are not keeping pace. The notion that a country may impose restrictions on a cryptocurrency is enough to negatively impact its value over night.
Cryptocurrency investments have the opportunity to offer significant ROI, however, consumers need to ensure they are doing their due diligence before investing. While many companies involved in cryptocurrency can offer a significant profit, it is crucial that consumers looking to invest can spot the legitimate opportunities among the sea of options.
With that in mind, here are the top 5 things you should know before investing in cryptocurrencies.
1. Do your research.
Everywhere you turn in crypto, there is another hot take or sure thing. At Block X, we have assembled a team of industry experts dedicated to researching the best investment opportunities. If you’re investing into crypto on your own, be sure to put together a personal due diligence checklist by asking yourself:
● Do they have a real team? Review their presence on LinkedIn to verify their team as experienced and legitimate players in the cryptocurrency space.
● Can you open the company’s code base? Where possible, review the company’s code base to verify its whole collection of source code.
● Is this addressing a real problem? Has the company identified an area of opportunity or is it a copycat of an existing offering?
● Is there proof of concept or beta? Ensuring the company can offer proof of concept or beta…