How to properly invest in crypto projects?

The cryptocurrency boom causes many to want to invest some of their money in new projects.When the price of BTC is toohigh and it is not possible to buy the first cryptocurrency, users are looking forMore affordable and no less profitable projects. ICO, IEO, or DeFi projects that are just coming outBut how to choose reliable ones?There are a few tips that will allow you toDon't go broke!

Any investment of currency is divided into speculation andinvestments. The purpose of speculation will be to buy at a low price and sell at a higher price, time can go by minutes. For speculation, it is important to feel the market, to understand all its mechanisms. Investments are more suitable for investors without a lot of experience. Reliable projects are selected that are guaranteed to bring 5-15% of income per year. This is a long-term investment, at least for a year.

Portfolio

A balanced portfolio can consist of crypto assets or a mixture of crypto and fiat assets. Fiat money can be invested in stocks, funds, businesses, or deposited into an account at interest.

Crypto-assets can also work in several ways. The most reliable one is buying coins. A slightly more risky option is buying coins during the ICO, the initial sale from new projects.

When forming a portfolio, there are two rules:

1. The more cryptocurrencies, the more reliable the portfolio. The recession of a few will be covered by the rest;

2. Approximately 70% of investments should be kept in reliable assets, the rest - in risky ones.

Subject to these two rules, investments are almost guaranteed not to burn.

Selection criteria for buying cryptocurrency

The first thing to look at is the idea of the coin.Look: the White Paper, the roadmap, and the development team.The White Paper should be unique and correspond to the investor's views on the business.The roadmap has completed points, the team moves in accordance with its plans.The team should be open to study – names, biographies are available, and the reputation of each can be assessed.

The information field looks at the second stage:working website, social networks. What do other investors write about the coin? Are there scandals or broken promises? The older the coin, the more scandals, which means that it has experienced ups and downs, and the fewer there will be in the future.

The real work on currency needs to be looked atGithub. If the project is updated at least every 5 days, then it can be considered not abandoned. Rare updates can be offset by a unique idea and a strong development team.

Then we look at the coin.It is better if the issue of coins is limited, because infinite coins create inflation. How many exchanges work with this coin? Ideally, the coin should be in the TOP 5 popular exchanges. On the exchanges, it is important to watch the real activity for this coin, and not the nominal presence.

Selection criteria for ICO

Investors in a new project collect the very creamhave the highest profit. You need to choose new projects according to the same criteria, just in more depth. Big benefits always carry big risks, an untested project takes more time to learn.

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