Investing In Crypto Art Or Science Or Both
The global economy is inevitably moving towards a digital ecosystem. From investment to money transfer, everything is going paperless. The newest and most promising addition to the digital payment sector is cryptocurrency. This article will talk about Cryptocurrency being a science or an art or maybe even both.
Before we dive right into this, let’s take a look at Cryptocurrency. Cryptocurrency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information. Cryptocurrency is defined by Investopedia.com as a decentralized “digital or virtual currency that uses cryptography for security” making it difficult to counterfeit. In a decentralized blockchain network, no one has to know or trust anyone else. Each member in the network has a copy of the exact same data in the form of a distributed ledger. Unlike in the term “centralized cryptocurrency exchange,” the idea of centralization refers to the use of a middle man or third party to help conduct transactions. Buyers and sellers alike trust this middle man to handle their assets. This is common in a bank setup, where a customer trusts the bank to hold his or her money.
Now that we’ve gone through that, moving on let’s talk about the awareness, interest and information people have on and about Cryptocurrency. This past year staying indoors during the COVID lockdown has left the majority of us learning a skill or two. A lot of online and digital skills and innovations have come to light individually since we’ve now, the hard way, realized that the world is beginning to run more on digital advancements.
Language courses, digital marketing, data science, finance management courses, content writing, programming, Forex, graphics design, copywriting and even Cryptocurrency, you name it. These are a few among the many things learnt during the lockdown. This is especially an unprecedented method Cryptocurrency got its awareness shot through the minds of millions of people of all ages, globally. Many factors have raised people’s awareness and interest in Bitcoin and other coins generally called alt coins. Needless to say, these virtual currencies are very volatile digital assets. Therefore, individuals have taken great care when investing in them and used only reliable platforms to avoid losing their hard-earned fiat money trying to invest in Bitcoin and Alt coins.
As for the interest of people. According to a survey conducted by CNBC, Some 65% of cryptocurrency investors who took part in their survey, jumped into the asset class in the last year alone. In the same timeframe, the prices of some of the top cryptocurrencies have displayed trademark volatility. Bitcoin, for example, surged to an all-time high of more than $63,000 in April, slumped afterwards and then recently rallied again to nearly $50,000. Indubitably, people are interested.
And as for the information on and about Cryptocurrency. Sites like coinmarket cap provide short, synopsis-like pieces of information about interesting coins. Besides this, articles on any coin of interest could easily be searched for. Be it on the internet directly on search engines or on apps like medium. Here in these articles will Investors find links and references to the social media made available for more information.
Investors in the cryptoverse would like to know where to Buy and store Cryptocurrencies. There are Cryptocurrency trading sites that are available for this. A host of them are, coinbase, robinhood, Gemini, kraken, crypto.com and my personal favourite, Binance.
Cryptocurrencies that have been noted to be bought in the year 2021 include the following. Litecoin, Ripple (XRP), Ethereum, Dogecoin, Vechain, Binance coin (BNB), Cardano, Polkadot and Polygon. This is not financial advice and Needless to say, investors should Do your own Research, DYOR.
Moving on, there is a checklist to check through before investing. Things to look out for such as whitepaper, team, tokenomics, social media pages like Twitter and telegram, market cap and trend charts.
White paper-: A white paper is created by the founders and/or developers of a crypto to help sell the crypto. But instead of pushing emotional buttons, they provide facts, diagrams, statistics, and quotes. White papers are written by technically focused individuals for technically interested buyers. They are written to explain a complex and technical subject or product. In a nutshell, a white paper is your guide to what the Cryptocurrency you’re interested in is all about. This helps to see if they fit your personal criteria for what a Cryptocurrency must have before you can invest in it.
The Team -: just basically refers to the people who are part of the platform of Cryptocurrency, the creators, CEO, CTO, technicals, marketers and other members that they might have. Investors could even go as far as doing a background check to see if they’re legit. It’s all up to the investors’ decisions.
Tokenomics -: refers to a token’s quality and consists of anything that impacts the token’s value. Quality and value are things that will either convince smart investors to buy or avoid a token. It can be found in the white paper or even on the Cryptos’ official site.
The social media -: as probably already assumed, it functions just to give more credibility, assurance and scale the legitimacy of the Cryptocurrency as well as get more information on their goals, history, plans among other things. Investors can also check out who the social media pages follow, who follows them, tags them, talks about them and the likes.
Market Cap and trend chart -: also need to be considered. For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin. while on the other hand. Crypto charts or trend lines are simply visual tools that display relevant data in such a way as to help you understand cryptocurrency price movements. Trendlines are drawn based on the highs and lows of crypto price charts, connecting two or three candlestick tops and bottoms. Coinmarketcap.com helps to check out these.
Roadmaps -: A roadmap is a plan with estimated completion dates that show what an organization wants to achieve in the long term. Looking at a roadmap gives you an understanding of what the organization wants to provide to its customers and what it wants to become.
Products and services -: Products and services of Cryptocurrencies you’re interested in can be gotten from social media, white papers and even online articles written about them. As simple as that. The medium app helps with a good read also.
A good advice would be to buy small Cryptocurrencies interested to invest in. No good thing comes from rushing into things. Investing needs to take it easy and slow, do your research and invest small and set your goals from the said investment.
Lastly, building a portfolio is a really good move. A cryptocurrency portfolio is software that manages your inventory of online currency investments. It helps you track each coin’s performance and provides you with analytical tools. Many portfolio management systems provide live feeds and pricing updates from cryptocurrency exchanges. They may even alert you about significant market activities.
In some ways, investing in Cryptocurrency is both a science and an art. It takes the logic of science and the beauty of art. I hope you had a good read.
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