With the abundance of cryptocurrency projects out there, it’s not an easy task to find a solid one that can give you a legitimate chance to make massive returns. Since you want to pursue reaching your goal, you’ll do thorough research. Now, to help you in your journey, this article will help you to know the cryptocurrency fundamentals and the five simple traits that make legitimate cryptocurrency projects worthy for investment.
For those who don’t know it yet, cryptocurrency is fast and a global phenomenon — the digital money designed with cryptographic rules that make trades secure and impossible to sham. In fact, the best thing about it is any central authority does not manipulate it —it has decentralized nature. In other words, it doesn’t follow the old ways of government control and intervention.
Moving forward, there’s a technology wherein a record of transactions made in bitcoin, including other cryptocurrencies, are being conserved across various terminals (computers) that are connected in a peer-to-peer grid. It’s the blockchain technology — a time-stamped series of changeless record of information.
Good to know: When a transaction is unconfirmed, it remains pending and can be forged. But, once the transaction has been confirmed, it’s set in stone. Through blockchain technology, transactions are propagated instantly in the network, and confirmation, typically, only takes a couple of minutes. Confirmed transactions can’t be altered, nor be reversed.
Why Crypto is Essential to Users
The convenience that cryptocurrency brings to people is evident. Utilizing digital money gives users the ease to conduct any transactions. Do you want to know the reason why a lot of them prefer crypto trading? It’s because the transfers are being processed with minimal fees. Through this commodity, you can dodge steep fees charged by old-fashioned financial institutions.
Today, the cryptocurrency market is surrounded by individuals who advertise their coins all day to others who have the desire to invest. The fundamentals of cryptocurrency include technology, team, coverage, connections, competition, market size, community views, promotion efforts, working products, and a lot more.
Good to know: Cryptocurrency funds are protected in a public key cryptography system. People are convinced with this method because only the owner of the private key can send cryptocurrency. The system is impossible to break.
You can safely invest in crypto. The following information will give be your guide to become a well-informed investor when dealing with cryptocurrency project:
1. Presenting Unique and Credible Idea
Cryptocurrencies have pretty much been a subject of concentrated debate over the last few years. You might have heard stories of people becoming millionaires in just a short period, and stories of people who failed — losing hundreds of thousands of dollar, but still have hope to make a quick buck.
It’s true that there are numerous ways to utilize the blockchain technology and fresh thoughts are emerging every day. There’s nothing wrong with a cryptocurrency project that is aiming to accomplish something ambitious. But, you, as an investor, you must be vigilant with what the project presents. The project must be credible and clear.
Good to know: When you find that the project is incomprehensible, you should conduct research, and seek light to those in question. Avoid obscure projects so that you won’t end up being trapped by a scam.
2. Properly Distributing Currency
A legitimate cryptocurrency project deals through smart contract —the one that maintains the coin’s flow with specific rules. The smart agreement has these:
Good to know: As a wise stakeholder, you should not miss checking these: the ICO time window, how many coins will be sold in the closed pre-sale, and the bonus for purchasing at that time.
3.Managed by People with Expertise and Experience in the Industry
Most fresh ICO projects are emerging from a surviving blockchain. But, other organizers are building their own project. Now, the third trait that you should look at a crypto project to prove that it is authentic is by knowing the people organizing it. It’s a plus factor when an ICO has an Advisory Board. You’ll discover here the project’s advisors who are expected to render meaningful insights that are beneficial to the project.
Good to know: A trustworthy crypto project is transparent in presenting the profile of each member —their individual role and history. An authentic one must have a team with proficiency and experience in the industry. It’s also safe to get involved in a project with a big group of veterans.
4. Radiating Seriousness through Project’s White Paper
By looking at the crypto’s white paper, you can gauge the seriousness of a project. It may not be an exciting thing to read a PDF, but, you have to do it before you reap any sort of benefits. The content must be sensible, easy to understand, and comprehensive. By reading the document, you’ll be to understand the utility that the project is bringing into the ecosystem.
Also, here are other essential things you can expect from an authentic project’s website:
Good to know: It’s a legit crypto project when it explains the technology and purpose of the coin well through its white paper and other available assets.
5. Surrounded by People with Potential
Lastly, the cryptocurrency project won’t be successful without the help of its supporters. The ICO community is a vital sign of a crypto’s prospective. If you want to gather additional information about a specific crypto project, maximize your chance by checking these sites:
One More Thing Before You Go
It’s true that investing in cryptocurrencies and other Initial Coin Offerings may be speculative and risky. You must understand that each individual has a unique situation. With that being said, it’s always best to consult a qualified professional before making any final verdicts. Also, consider the five satisfactory traits that authentic cryptocurrency projects have so that you can invest in digital cash in a safe manner.