Crypto has been booming, but that hasn’t been without its downfalls. While we’ve all probably heard of someone banking big on Bitcoin or whatnot, stories like that are few and far between. However, that’s not to say you shouldn’t consider putting some stake into what could be the future of the internet. And if this has intrigued you, then I’ve provided a few helpful tips on how to get started. Check them out below:
Do Your Research On Legitimacy
If there’s one thing that any outsider will tell you about crypto, it’s that a lot of ICOs are “scams” or “illegitimate,” that’s not entirely the case. While granted, they’re correct that as noted by folks like Investopedia, 80 percent of ICOs have turned out to be failures, that doesn’t necessarily make them scams. However, as crypto is still largely unregulated in many parts of the world, it’s important to realize that there are a lot of bad actors, as well as those who are unseasoned, which is why you need to be careful in doing your due diligence.
In conducting your research, one of the first steps you should consider is what type of crypto company they are and the type of backing they have. Run through a checklist of criteria, including things like who the team is and their experience, the details of their whitepaper, and even if they have a working demo or MVP. If uncertain, it’s never bad to ask for the opinion of a startup lawyer like Aaron Kelly, who you might be able to hire for due diligence if you’re looking to invest quite a bit. The basic idea is to learn as much as you can to ensure you feel comfortable with how you hedge your bets.
Pick Some Sources To Read From
Another essential factor if you’re looking to get more into crypto is picking some solid sources to read. As noted by Coinschedule, there were approximately 434 ICOs in 2017 alone, which is quite a bit of whitepaper to read. If you’re looking for the best ICO news report, then building a diverse list is crucial.
To begin, map out a few different publications you’ve been looking into, including what you like about them and why. Furthermore, make sure that your mediums come from a variety of sources, including podcasts, editorial, blog posts, and even vlogs. As crypto is a relatively new industry, there isn’t a definitive voice to consider the top leader, which is why you should be patient in looking for the most credible source. Because although there’s plenty of speculation, you want to listen to someone with quality insights.
Hedge Your Bets
While crypto can be quite the exciting field to bet on, it’s also something you should play relatively conservatively. According to Bloomberg, $2.3 billion was lost in crypto last year alone, stemming from sources like hacking, bad trading, and fraud. Plus, with the only historical data based on previous trading behaviors for stocks, we don’t have a reliable cursor to what investing long-term looks like, which is why it’s important to diversify your investments.
A good rule of thumb for crypto is never to put in more than you’re willing to lose, as this is not only a volatile field but one that it can take quite a bit of time to liquidate. Instead, set aside things in percentages of income, for example, 10 percent to crypto, 20 percent to savings, and 10 percent to your 401k. Remember, the name of the game is to have your money work for you, which requires smart thinking and knowing how to play it safe. Doing so will be something you thank yourself for later down the road.
Be Committed To The Long-Haul
Finally, if you’re going to be getting into crypto, then you need to be committed to this for the long-haul. While we hear stories like how crypto returns were as high as 50,000 percent (as noted by Hackernoon), that’s not always going to be the case. As cryptocurrencies and blockchain are in their infancy, there are going to be some ups and downs, which you need to be prepared for both in regards to how you treat ICOs as well as crypto overall.
First and foremost, a significant reason you should be investing in ICOs or crypto projects is that you genuinely feel that an industry can benefit from decentralization and possibly can’t without once introduced. Additionally, these should be projects you feel in your gut can change the world, not just a quick cash grab. This is an industry for those who believe it’s truly going to be our future, which if you’re a part of that, then grab some coins and enjoy the ride.
What are you most excited about for investing in crypto? Comment with your answers below!
