Want to purchase cryptocurrency that is new in the market but do not know where to start? Fear not, for we are here to help you out.
When buying a new cryptocurrency, you have to know a few things. These include the fiat exchange rate, the cryptocurrency value, market cap, etc. So, encompassing all these things, here is a list of what you need to know before investing in new crypto.
#1 The Project’s Vision
If you want to buy cryptocurrency that is new in the market, make sure the project has a clear vision. That can be done by reading their whitepaper or website. A good white paper will also be backed up by a social media presence and a good website with an easy-to-use wallet or a simple way of buying the coin such as using an exchange. Find out if they have set a fixed supply of coins, which is something that can often cause problems in the long run.
#2 Check the Team Members.
When you’re looking for a cryptocurrency to invest in, it helps to know who is behind it. The team members developing the coin and the company behind it can make all the difference in how your investment performs. Before putting your hard-earned money down, take the time to do some research on who you’re dealing with. This list of things to check before you buy cryptocurrency is a good place to start.
#3 Do Not Follow the Crowd.
Before you dive in and buy cryptocurrency, take a moment to think about the things you will need to purchase and use it:
- A wallet (a place where your coins are stored)
- A digital wallet (an app or website to send and receive coins from others)
- An exchange (where you can trade one coin for another if needed)
- A source of secure, affordable internet access
#4 Check Their Plans and Achievements.
Investors make decisions based on reviews, news headlines, and social media posts. It is easy for them to get swept up in the hype of new cryptocurrencies that do not yet have a solid track record. Before you invest, ask yourself:
- Is this coin different from other coins?
- How many people are joining the subscription?
- Who is in charge of the project?
#5 Check Their Social Media Presence.
Check their social media presence. If a cryptocurrency project doesn’t have a Twitter, Facebook, Instagram, or another popular platform account—and even if it does—check the activity level of their accounts. You may want to look for evidence that there are people behind the projects you’re considering or at least that they care enough about their project to continue updating its community on its progress.
A thriving online community is sure to involve many voices of support (or dissent), and it is a good way to check whether or not the project is being maintained by people who have time and enthusiasm for what they are doing.
Weigh any hype against reality. In an industry as volatile as cryptocurrency, it is understandable why many would be drawn in by stories of overnight millionaires, but any good investor knows these stories can’t be considered representative of broader market trends.
If you find yourself investing in something simply because its price has been rising lately, don’t be surprised if you eventually get burned when things cool down—and remember that things like value and return on investment are what matter most anyway!
#6 Look For a Dedicated Community.
The best way to find out about a project’s community is by looking at its communication channels: Slack, Telegram/Discord, Reddit, and Forums/Forums-specific subreddits (if applicable). For example, if I am interested in Vertcoin (VTC), I can join its subreddit and see how many people are talking there:
These aren’t perfect metrics on their own because anyone can make an account and post something online. However, if a crypto project has been around long enough and has thousands of followers on its official communication channels, there is probably something going on behind the scenes. Look into it before investing heavily into the currency.
There are five key reasons why having active community matters:
- An engaged community will have ideas that’ll help improve the product over time, which contributes positively to its value
- Having an active Community Manager who listens closely helps gather feedback from users directly—and this feedback can often provide valuable insights into what features or changes users would like to see happen next
- An engaged Community Manager who gathers feedback often leads organically toward new features/changes being implemented based on what users want; this means that each user benefits from being part of the community
#7 Check Their Payment Methods.
Now that cryptocurrency has made its way into the mainstream and is garnering more interest, investors are flocking to it in droves. This can be both exciting and dangerous: the market is already volatile, but with all this new interest, it’s poised to fluctuate even more. If you’re interested in getting involved in cryptocurrency investing (called crypto), it’s important to understand the risks of investing in a new market.
If you’re thinking about using your credit card, bank transfer, or cash to buy crypto for the first time, there are a few key things you should check before proceeding:
- If using a credit card or bank transfer, what are your fees for buying crypto on an exchange? Does your exchange support your region? When will you receive your crypto after purchasing?
- Are you allowed to use PayPal when buying crypto? For many investors, this is their preferred method of payment because it allows them access to their funds quickly and easily—a crucial advantage when trading volatile assets like bitcoin and ether. You may find that exchanges don’t allow PayPal payments due to chargeback risk or other policies. It’s important that you know whether PayPal is an accepted form of payment before setting up an account.
- What forms of payment does the exchange accept? You should research any potential concerns with each payment method such as if there is a chance of fraud or if the third-party service provider keeps logs of transactions (which can compromise customer privacy).
Once you have done your research and know in detail about all these things, you can decide whether or not you should invest in the new crypto.
