There are typically two types of investors: the ones that do their research, and the ones that do not. Many people may just read the headlines, track what’s popular or trendy, or just go with what looks familiar. While this might end up working in their favour, it is always recommended that you do some research to minimise possible losses.
While there is no way to predict how a cryptocurrency will fair, there are a number of steps to ensure that you enter the space knowing as much as you can.
Researching is key to understanding where you put your money. While it can be as simple as googling, the information can easily be overwhelming and littered with countless terms that require additional research. So, here are some things to take into consideration when you start your own research. The more you learn, the more likely you’ll also end up finding cryptocurrencies that suit your needs or beliefs better. Since cryptos are not stocks, you should try invest in ones that you want to see grow.
But at the end of the day, if you don’t want to do all this research and just invest in coins that you have heard about, remember never to invest money you can’t afford to lose. Even though the news and money circling around crypto, there are no guarantees on any ROI.