How to Know the Cryptocurrency You Are Investing in Is Legitimate
Are you interested in trading digital currencies? Do you want to join millions of people in the world who have made crypto trading a primary way to generate income? If that’s the case, you need to know how to make the right start. Yes, it is possible for you to start on the wrong foot if you don’t have a mentor to tell you the details of cryptocurrencies. Ido Fishman thinks the first thing you should consider before even looking into the value of a digital coin is its legitimacy. Here is how he thinks you can find out if the crypto coin you are interested in is legit or not.
Read the Whitepaper
“It might not make a lot of sense to you at first, but you can be sure that it will once you read it twice or thrice” says Ido Fishman. If you have read the whitepaper three or more times and it still does not make sense, then it was not meant to make sense at all. In other words, you are being impressed with difficult jargon and unnecessarily technical words. If you can’t understand the project, its scope, and the mechanics that make it work, there is no reason for you to invest in it.
Know the Developers
In the modern times, you can’t expect a bunch of people to suddenly pop up on social media right when they need investments from you to launch their cryptocurrency. In other words, the cryptocurrency developers should be active on social media and updating you on whatever is going on with their cryptocurrency. If most of the people on the team have just joined social media, that’s a red flag for you right there.
Wait a Little
Yes, it might sound a little counterproductive to wait out on a ripe opportunity of investing. However, you can’t really say the opportunity is right until you are sure about the legitimacy of the project. Waiting a little will give you some glimpse of what the initial investors got back. You will also have time to know the sentiment of the investors who have invested in the idea.
As per Ido Fishman, “Trading is not about taking risks. Instead, it is about taking calculated risks, which loosely equates to not taking the risk.” Therefore, make sure you confirm the legitimacy of a cryptocurrency before you invest in it.