There are endless opportunities surrounding crypto tokens, especially with the rise of DeFi. Whether you're a beginner looking to invest in the crypto market or a seasoned investor, below are some techniques that will guide you in making a safe choice.
2. The world of cryptocurrencies is vast and doesn’t revolve around Bitcoin
and blockchain alone. There are over 5,000 cryptocurrencies in the
market today. Many of them aren't real. Scammers have seen the
potential opportunities in the crypto space, and they’ve designed some
tokens in order to get people’s money.
3. Introduction
There are endless opportunities surrounding crypto tokens, especially with the
rise of DeFi.
Whether you're a beginner looking to invest in the crypto market or a
seasoned investor, below are some techniques that will guide you in making a
safe choice.
4. Scrutinize the Token’s
Whitepaper
The token’s whitepaper will help you decide if the crypto is a realistic
one or not. When you find realistic goals, make sure that they were not
taken from another project’s whitepaper.
5. Evaluate the Team Behind the
Project
When you get a good knowledge of the offering of the project, assess the team
behind that project. If they are not reputable when it comes to blockchain or
the DeFi technology, back off.
You should invest on projects run by people who know the business well and
have gained some reputation in ways like prompt answering of questions,
building a community, etc.
6. Crosscheck the Project on
Social Media
One of the surefire ways to assess an Initial Coin Offering (ICO) is to look
at the token’s community on any social media platform. Find out what
people are saying about the project.
7. Ascertain Legality Issues
Now that you are ready to invest on a token’s ICO, you should ascertain
the legality issues of such project before investing. Read legal
documents or speak to a qualified attorney on the implications of
investing in any cryptocurrency.
8. Find Trusted people
In truth, you may not have time to scrutinize the token you want to
invest in as there are a lot of possible currencies that can be invested in,
and have to depend on trusted people to make your decision. You
should follow those who are experienced and trusted. They will tell you
what you need to know about your intended project.
9. Keep Abreast
You should not be left in the dark about what is happening to the token
you want to invest in. Join talk forums and other communities where
people talk about crypto tokens to help you make your choice.
10. Timing
If there is something you should not toy with when investing in a token,
it is time. Timing is the perfect partner in a crypto token investment. You
should know when it is the right time to invest in any cryptocurrency as
a wrong timing would ruin all your investments.
11. Finally, always remember to do your own research and learn from
others. That is one surefire of not losing your money to scammers or a
bad token.