There are about two tens of thousands of different cryptocurrencies in the world. Which one do you have to buy to make tens or even hundreds of percent of the profits?
To answer this question we will examine the main concepts:
- Coin - cryptocurrency with its own blockchain, it can be mined and used for translation (proven projects);
- A token is a cryptactin on a foreign blockchain, restricted to a decentralized application (new projects).
To earn on buying cryptocurrency you need to identify promising areas of the industry, highlight the best projects and follow the news of the team. There is a high chance that the new technology will succeed and the value of issued tokens (or coins) will soar.
To choose a successful project, follow the developers who have already been successful in the industry, it is possible that they are already working on a new development that will turn the whole industry. Keep an eye on new technologies that will solve the industrys current problems and bring huge profits.
After selecting a cryptactin, study the changes in the graph for the entire trading period, as a rule, the change in the price of an asset has a cyclicality. Make sure that the coin is traded on all major exchanges. Note the number of issued coins, the fewer they are, the better. Ideally, the number of coins should be constant or even decreasing, due to burning by the developer.
To increase the likelihood of earning money, buy time-tested coins (see the leaders in capitalization on the exchanges) and keep a long term (3 to 5 years).
If you dont have the patience to wait 5 years, you should choose new coins and tokens with advanced technologies (NFT, DEFI, etc.).
To make a profit from investing in crypto, you need to look very closely at the industry and identify all the important projects in which you believe in the success. But do not neglect the «old» coins.
Most importantly, do not «put all the eggs in one basket», select multiple (up to 7) assets and form a diversified portfolio using all modern anti-fraud and anti-hacking tools.