You have no problem with assuming the risk that comes with investing in cryptocurrency. But that doesn’t mean you’re willing to throw all caution to the wind, either.
The question you’re constantly asking yourself as an investor is, “Which cryptocurrency should I invest in?” After all, more than 1,000 cryptocurrencies exist today, and hundreds or even thousands of dollars are at stake each time you proceed with a cryptocurrency transaction.
The good news is, you don’t have to navigate the cryptocurrency investing world blindly. Instead, you can make sure that you make the right choice with the right resources.
Here’s a rundown on how to decide what cryptocurrency to invest in this spring season and beyond.
Participate in Initial Coin Offerings, or ICOs
ICOs are currently popular tools for startups in the blockchain arena to raise funds for their projects.
In ICOs, teams host crowd sales in which you can buy tokens to utilize on their platforms. It’s also possible for you to trade your tokens in exchanges — also known as the secondary market — following the ICOs.
Taking part in an ICO can be very lucrative, which is why it makes sense to start with these coin offerings if you’re looking for the right cryptocurrency to invest in.
Investigate Less Commonly Known Exchanges
Let’s say you missed the chance to take part in an intriguing ICO. The good news is that you may still invest in cryptocurrency as soon as the currency reaches exchanges.
During this time, you’ll often see a short spike and then a dump right away because ICO investors are looking to take advantage of short-term gains. It’s a great opportunity for you to get cryptocurrency for the types of low prices you’ll find in ICOs.
The more quickly you act, the sooner you can invest in cryptocurrencies before today’s major exchanges start to list them. You can score big in decentralized exchanges like IDEX as well as Cryptopia.
Look out for Significant Events
As you look for the best cryptocurrencies to invest in, consider what important events are taking place at a given time. Why? Because cryptocurrency prices have a tendency to increase after significant partnership announcements and development milestones.
The short-term approach of eyeing important events may not seem as easy to execute as participating in ICOs or exploring less commonly known exchanges. However, event calendars and project roadmaps can serve as excellent indicators of what coins to select.
A great place to learn about various projects is Twitter, which also has a handy Telegram channel. These tools may help you to discover important announcements before the general public does.
If you can buy into projects early, you can enjoy the financial increase that will likely occur after their announcements. Of course, to make this work, impeccable timing is paramount.
How We Can Help
We offer a number of helpful tips for those interested in determining what cryptocurrency to invest in. For instance, you can find out how to invest in bitcoin as well as what you can buy with this type of cryptocurrency.
Take a peek here to learn more about how to capitalize on the booming cryptocurrency market this year and in the years ahead.