Which Cryptocurrency Investment Is Most Profitable Today
2017 is the year of cryptocurrency when the price of major
cryptocurrency went up thounsand percent. Bitcoin as the first and the
biggest volume cryptocurrency in the world gains the highest price at
about USD 19,000. The significant price increase attract the attention
of most government in all over the world to the cryptocurrency
especially Bitcoin. Some country were trying to make a new regulation
for cryptocurrency especially for taxation because several person tried
to store their assets in cryptocurrency to avoids the taxation system.
Price Volatility
Cryptocurrency investment is a very high risk investment because the price is volatile. For example is the significant drop of major cryptocurrency in the middle of January 2018 and continues to drops until February 2018. In February, the price drops to 3 months low at USD 6,000 then bounce back to about USD 11,500. In Maret 2018, Bitcoin drops again from USD 11,500 to USD 6,500 and bounce back to USD 8,000 when this article wrote.
Another example of cryptocurrency volatility price is Bitconnect. The price drops 90% in a day from USD 300 to USD 30 because government send cease and desist letter to Bitconnect. The price continues to drop until the coin price is only USD 2.
For professional trader, the volatility price of the market is a common thing. If the price drops rapidly, usually they will sell off or cut loss their assets, but for newbie traders, this is a big trouble. Don't try to trade or invest in cryptocurrency if you're not ready to loss. Don't try to use your living cost to trade cryptocurrency because if you loss the trade you will be in a financial trouble. Trading is a business that needs skills and analysis includes fundamental and technical analysis. It's not gambling which rely on luck or just for fun game.
Cryptocurrency Investment
People who invests a lot of money in 2016 in top 10 cryptocurrency is a millionaire today. According To Wikipedia, to invest (in general) is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.
In cryptocurrency, you can easily buys coin in the cryptocurrency exchange or in the ICO (Initial Coin Offering). According to Investopedia, ICO is an unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. This is some tips to participate in an ICO.
1. Read Whitepaper Thoroughly
In the whitepaper, we can know the background and purpose of the cryptocurrency project. If the background and goals are out of sync or unreasonable, it's better not to invest because they are very risky and could lead to fraud. Because more than 60% of ICOs have failed to raise funds due to making projects that are not needed by the public or the ambiguities in whitepapers already given.
2. Get to know the team
The team is a core component of a project after a clear background and purpose. Without a competent team, of course the goal will not be achieved and it could be a fall project in the middle of the road. Today many ICOs are offered without any clarity on who the team members are and many leave their projects after 1 month running just to benefit from ICO. A good ICO will certainly provide information on who the team members are in the project along with the experience information of its members.
3. Compare Total Supply With Coin Prices
Total supply and coin prices are closely related, as more coins are issued, of course, the price should be cheaper. If one sells a lot of coins at an expensive price it is better not to buy because it is very risky and could have dropped dramatically after entering the market. Better to buy after entering the market only.
4. Check ICO on Leading Sites
At this time there have been several sites providing information about ICO, such as icodrops.com, icobench.com, icowatchlist.com, and trackico.com. From these sites available information and assessment from experts and community.
Price Volatility
Cryptocurrency investment is a very high risk investment because the price is volatile. For example is the significant drop of major cryptocurrency in the middle of January 2018 and continues to drops until February 2018. In February, the price drops to 3 months low at USD 6,000 then bounce back to about USD 11,500. In Maret 2018, Bitcoin drops again from USD 11,500 to USD 6,500 and bounce back to USD 8,000 when this article wrote.
Another example of cryptocurrency volatility price is Bitconnect. The price drops 90% in a day from USD 300 to USD 30 because government send cease and desist letter to Bitconnect. The price continues to drop until the coin price is only USD 2.
For professional trader, the volatility price of the market is a common thing. If the price drops rapidly, usually they will sell off or cut loss their assets, but for newbie traders, this is a big trouble. Don't try to trade or invest in cryptocurrency if you're not ready to loss. Don't try to use your living cost to trade cryptocurrency because if you loss the trade you will be in a financial trouble. Trading is a business that needs skills and analysis includes fundamental and technical analysis. It's not gambling which rely on luck or just for fun game.
Cryptocurrency Investment
People who invests a lot of money in 2016 in top 10 cryptocurrency is a millionaire today. According To Wikipedia, to invest (in general) is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.
In cryptocurrency, you can easily buys coin in the cryptocurrency exchange or in the ICO (Initial Coin Offering). According to Investopedia, ICO is an unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. This is some tips to participate in an ICO.
1. Read Whitepaper Thoroughly
In the whitepaper, we can know the background and purpose of the cryptocurrency project. If the background and goals are out of sync or unreasonable, it's better not to invest because they are very risky and could lead to fraud. Because more than 60% of ICOs have failed to raise funds due to making projects that are not needed by the public or the ambiguities in whitepapers already given.
2. Get to know the team
The team is a core component of a project after a clear background and purpose. Without a competent team, of course the goal will not be achieved and it could be a fall project in the middle of the road. Today many ICOs are offered without any clarity on who the team members are and many leave their projects after 1 month running just to benefit from ICO. A good ICO will certainly provide information on who the team members are in the project along with the experience information of its members.
3. Compare Total Supply With Coin Prices
Total supply and coin prices are closely related, as more coins are issued, of course, the price should be cheaper. If one sells a lot of coins at an expensive price it is better not to buy because it is very risky and could have dropped dramatically after entering the market. Better to buy after entering the market only.
4. Check ICO on Leading Sites
At this time there have been several sites providing information about ICO, such as icodrops.com, icobench.com, icowatchlist.com, and trackico.com. From these sites available information and assessment from experts and community.
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