Are you Looking to invest in Crypto? Read these 6 Pre-Investment Tips from BlockQuake’s Chief Strategist, Sam Hyun.
Before you invest in a Crypto Asset (think Bitcoin) or an Initial Coin Offering or Security Token Offering (think buying stock in a company), do your due diligence. Channel your inner Sherlock and start investigating.
1. Visit the Website
Check out the website for the company or project. What type of information is provided? If there isn’t a website, that’s an immediate Red Flag.
2. Look at the Team
Does the project have a well-established team? Who are the key players and what are their backgrounds? Do the team members have an online presence beyond the company website? Also, look at the size of the team relative to the scope of the project.
3. Read the Whitepaper
What is the problem or opportunity that exists and how does the project solve it? The whitepaper (or other relevant project documents) will provide the backbone of what the project will entail – business plan, business scope, money allocation, expected/potential investment returns, positioning etc. Do they have any strategic partnerships with established companies? What is the scope? The scope of the project can dictate how large the company will be and how fast the company is trying to expand. After reading the whitepaper, you should have a good understanding of the project.
4. Obtain Info from 3rd Party Sites
In addition to a standard Google search, there are crypto news sites and data aggregators that feature information on crypto projects and coin offerings. A few places to start are CoinMarketCap.com and CoinGecko.com where you can see the market cap, ranking etc. for hundreds of cryptos. These listings can provide information relating to the overall size of the cryptocurrency market as well as provide additional resources and information on the project.
5. Be Interested in the Project
This goes for all types of investments. Don’t invest just because your cousin Tom did. Fear of missing out (FOMO) is a No-No. You should be interested and believe in the type of service or product the company offers. Can you see it thriving and having real use case utility in the marketplace? Don’t get caught up in the Fear, Uncertainty, and Doubt (FUD) which can influence perception.
6. Look at the Community
Is there a community and what are they saying about the project? Read blogs and articles, look at Reddit and Telegram as well as social media. Community support can help propel a project.
The key is to Do Your Research. These six pre-investment tips will help start you on your way. Make sure to apply the same investigative technique as you would for any other investment or major purchase – no matter how popular the crypto is.
Free Downloadable Copy of 6 Pre-Investment Tips
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