The Crypto Minefield
Investment is an inherently risky business. There are dozens of factors affecting exchange rates and no one has ever excluded the fraud factor or basic, deflating hype. The cryptocurrency market is subject to these and dozens more. The fact that cryptos are unsecured by anything, unlike fiat currencies, makes them extremely susceptible to risk, as the latest waxes and wanes of the Bitcoin vividly demonstrate. However, there are some basic rules that have emerged as a result of combined experience on the crypto market over the last few years.
The most important aspect of investing in cryptocurrencies is having at least a basic understanding of the technology and the established practices in the sector. A good way to start would be to spend some time reading reputable magazines and outlets on the issue. It is important to remember that a few moments of thought can very well save you a lifetime of regret.
The amount of scam on the market is unprecedented, and this includes fraudulent exchanges. The reason for such indignity is simple – no regulation or any manner of arbitrage, as governments do not yet have any control over cryptos and there are no legal frameworks to rely on in seeking justice. The most secure exchange for people based in the U.S. is Coinbase, because it is user-friendly and a reputable resource. LocalBitcoins also allows buying BTCs for a bit lower price from local people and even adds a personal element to the trading issue. Bittrex, Kraken, Gemini and Poloniex are also reputable resources to look at.
Buying cryptos is just the beginning, because losing them can be just as simple, given the huge amount of scam and hacking involved on the crypto market. Buying a hardware wallet such as a Trezor, Nano Ledger S or any other is a secure way of keeping cryptos safe from malware or hacker attacks.
Once the user has gained sufficient knowledge on the market to understand the principles involved in the crypto market, it is high time to start investing before the price of tokens or BTCs grows even higher. Given that there are dozens of cryptocurrencies on the market, it is important to choose very wisely and according to budget when deciding which cryptos to buy. There are no rules, but sound recommendations are available and they apply to all ICOs.
When looking at ICO projects to invest in you should learn everything you can about the development team behind the project. Projects without weighty names are to be avoided as specialists are not prone to sullying their reputations with dubious ventures.
Whitepapers are the best resource for understanding what problem the project is trying to solve on the market and potentially specifying the value of the tokens being offered. Demand breeds supply, and if the demand for the project’s services is high, the tokens will surely have value in the future and are a good investment.
The last and most important point of note is diversifying the portfolio of tokens as risks are inherent and losing all of your eggs placed in one basket is a terrible thing.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.