What to do when selecting a Crypto to invest in - Part 4

Research on the leadership of the organization, their tech team and the track record of the Chief Executive Officer. What do other users say about the exchange?
What does the exchange say about itself? Have there been issues with security in the past? If so, how has that exchange addressed those problems? In your search, dig deep;

look for potential negative stories that the exchange development team would not want potential customers to see. Cryptocurrencies are highly volatile.

This is due to speculation, hype, pump and dump schemes and a lack of regulatory oversight. Looking at a coin�s price history tells a story.

In general, the more expensive coins with higher market capitalizations are less susceptible to pump and dump schemes while the cheap ones with low market caps are.

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Investors that recognize this can avoid unnecessary losses.A coin�s price may also correlate to other coin prices, stock market moves or world events.

A typical example is, when there is rapid increase in the price of Bitcoin, most altcoins decrease in price value. This is due to the fact that Bitcoin is the primary coin used to trade other coins.

An increase in Bitcoin purchase results into to an increase in altcoin sales. This drives Bitcoin�s price up and altcoins down.

Comprehension of the reason why a coin�s price moves up and down is key to predicting its long-term value.

The eight point I must bring to light is "Security". The more difficult it is to sign up and create an account at a particular exchange, the better.

If it's too simple to create an account, that suggests that an exchange is not particularly trustworthy. What happens, then, if your digital assets suddenly disappear? You may have a much harder time tracking down and regaining your money in those cases.

Regardless of the exchange that you choose, it's a good idea to keep the large majority of your digital assets in an offline storage service like a cold wallet.
Exchanges should do the same with their assets that aren't required for liquidity.

You have browsed through the pool of potential exchanges and some that seem to have excellent reputations, histories with regard to security, and no past history of hacks or scams. Thatis a wonderful beginning, but now you'll need to consider how each exchange will impact your investing on a daily basis.

Two major factors that distinguish different exchanges are the fees and the currency pairs they offer. Most exchanges will involve a sort of fee for your transactions; these can depend on the volume of the transaction, or they may depend upon your level of activity, or, in some cases, they might not relate to any of those factors.

Learn about the fees and consider how they would affect your investing based on your style; do you plan to be highly active, making some transactions every day?
Maybe you should consider an exchange with a lower per-transaction fee.

I will strongly advise you to also check the developer activity of the particular coin you are picking interest in investing. Strong projects have high developer activity.

If the activity is low or down trending, that is a reason to be concerned. The number of updates it has received, how many watchers there are, how many forks have been created and the total stars are great metrics to gauge the project�s activity.Are problems being identified and bugs being fixed?

Are more contributors joining the project? If developer activity is going up rapidly, that�s a great sign of a strong project.

As you check the developer activity you should also endeavor to check the community activity. A project with a strong community is just as important as high developer activity.

The larger and more involved the community is, the more valuable the coin should be. You can do this by checking their top social media accounts to see the engagement of followers, commentary and rating.

Selecting which crypto to trade can be a tiring and confusing task. Being factual instead of emotional while making decisions will aid you select the investment that will be right for you.

Once you have selected the coin you want to invest in, stay vigilant and watch your portfolio closely in the market. Be on the watch for all news relating to your investment and keep on carrying out the same solo research as you did before investing.

Altcoins might not experience the same rapid growth as Bitcoin since some are in the growth phase. However, choosing the right cryptocurrency to invest in can lead to lucrative returns.

Thank you for stopping by to read my article.

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