Study the value proposition of the crypto. Since it’s a financial asset, it should have a utility or solve a problem that can generate money for its investors.- raj Shamani
There are 10,000+ active cryptocurrencies in the world. How to pick the right ones? [A thread] 🧵
You can either put a blindfold on your eyes and buy a hyped coin. OR Do adequate research. If you choose the second option, 5 points to consider before buying a cryptocurrency.
[1] Check the history of the team behind the crypto—founders, developers, marketers, etc. The team should be skilled, experienced, and credible.
[2] Study the value proposition of the crypto. Since it’s a financial asset, it should have a utility or solve a problem that can generate money for its investors.
[3] Audit the crypto’s social engagement. Good crypto should have an active, engaged community. For instance, Dogecoin has a vibrant community.
[4] Find out how many people hold the coin currently. If a coin enjoys a good market cap, it’s a safe bet. Look for a coin with large volume candles.
[5] “Will you hold the coin for the next 5 years?” If you can answer this question with a YES, choose the coin. Otherwise, reject it. It’s a long term investment, not a quick-money-making machine.
TL;DR [1] Check the history of the team behind the crypto. [2] Study the value proposition. [3] Audit the social engagement. [4] Find out how many people hold the coin currently. [5] Make up your mind to hold the coin for the next 5 years.
Sathvik Vishwanath, the CEO & Co-founder of Unocoin, shared these points during the recent podcast. He also discussed the future of cryptocurrency, why Unocoin doesn’t market itself “aggressively”, and how he started Unocoin.
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