Since the beginning of the year, there have been numerous ICO projects which have presented opportunities for investors and early adopters to make good profits. What this piece seeks to do is to touch on the possible ways to make an early entry into a digital asset and make profits as a result of the early adoption move.
The first step to any investment making decision will be ‘Research’. For those who might not be able to compute numbers by themselves and calculate percentages and what not, there are tools and reviews online about projects that can be searched for.
Through research, you would have discovered that the total market capitalization for cryptocurrencies was $10 Billion at the beginning of the year and that it is now past $160 Billion. Through research, you would have also found out that the value of Ethereum was about $20 at the beginning of the year and it is almost $400 today. Research also shows that early adopters of Augur token are currently at a profit position of 4,185 percent.
It is worthy to note that there are a number of undervalued digital assets which a lot of people are yet to pay attention to. Such assets have strong teams behind them and have hitched some strategic partnerships with stakeholder institutions. Additional point of note is that a sizeable number of crypto assets are likely to fail (no figures can be concretely put on this, but a figure above 50% of assets that currently exist can be a realistic estimate).
The crux of the whole matter is that to be successful with crypto-investing, there is the need to do some good research – preferably long term research. It is advisable to continually search for articles online (visiting ICOWatchlist Blog Page regularly for example) and also watch educative YouTube videos.
It is quite easy for anyone to be swayed by the market price of an asset. The short term upward movement of an asset’s price does not give an assurance of long term viability or even continued existence. There are assets that might show aggressive bullish movements right after introduction during and post-ICO and thereafter see its prices plummet steeply – prices could even go below the ICO pricing floor. And there is a possibility of some of these assets never recovering. The upside to this however is that early adopters could make some good profits as the assets experience these steep bullish and bearish movements.
Committing long term to an asset would require a close evaluation of the asset. The following notes should help;
- You do not throw coins at just any asset. If you throw money/coins at an asset without doing due diligence and research, there is a high likelihood of your investment going down the drain.
- There is the need to as much as possible avoid the fear of missing out (FOMO). Being jittery and wanting to get in on each and every crypto-deal will see you lose than gain.
- Be sure to only throw money you can afford to lose at investments. Do not put up all of your life’s savings.
- If you have to stay up round the clock to constantly take a look at graphs, then there is a high likelihood that you are trading and/or investing wrong.
- If you sit behind your screen and are unable to decide on which assets to buy, it is advisable to close it and go watch your favorite sports. Indecision at such moments clearly says that you have not researched enough and will need more time to do some studies of the assets.
A research well-done would help you find promising assets; even possibly find an asset with high future profitability but isn’t yet popular – you will have been strategically positioned ahead of the market by the time their attention is drawn to it. It is however imperative not to throw lump sums at a particular obscure asset whiles waiting on the market to catch on.
Every good trader gets his or her basics right first and then goes on to create their own approach to general technical and fundamental analysis. What works for one trader or investor might not work for the next.