[the_ad_group id="63"]

Crypto Updates

I’m a Crypto Expert: 7 Rules Every Crypto Investor Should Follow

Cryptocurrency Is About To Go Mainstream With Latest Bitcoin ETF — Can It Make Owning Crypto More Profitable?

[the_ad id="2528"]

[ad_1]

The sentencing last week of FTX founder Sam Bankman-Fried is helping put the debacle the crypto ecosystem has endured in the rearview mirror. This — coupled with the bull run the space has been experiencing lately, largely driven by Bitcoin breaking its previous all-time high record last month — as well as the popularity of recently approved Bitcoin spot exchange traded funds (ETFs) is making many investors take another look.

Check Out: 8 Best Cryptocurrencies To Invest In for 2024
Read Next: 6 Genius Things All Wealthy People Do With Their Money

Yet, whether you’re a newbie crypto investor or a more experienced one, experts said there are a slew of rules one should follow.

Do Your Research

Learn about the purpose of the token or blockchain before investing.

Just like corporate stocks, many crypto tokens serve a specific technological or business purpose, said Thomas Hogan, economist with the American Institute for Economic Research.

For instance, Filecoin (FIL) facilitates online file storage. Helium (HNT) supports a WiFi and mobile data network.

“In contrast, meme coins like DOGE and PEPE serve no purpose and are purely for speculation. Are you investing because you like the product or just for ‘number go up?’ Think about it before you buy,” added Hogan.

Other steps in conducting thorough research are to know who the team behind the project is, understand the use case and technology — and to analyze market trends to get a feel for what the larger community thinks about said product.

“Look out for whitepapers, roadmaps and existing use cases. Be wary of meme coins and stay clear of those without a clear purpose,” said Guy Sheetrit, CEO at Over The Top SEO. “Don’t believe everything you read online or hear from influencers.”

Learn More: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You

Know Your Appetite (and Tolerance) For Risk

Some experts argued that if you’re just getting started, it’s probably best to stick with the bigger, high-liquidity tokens — like BTC, ETH and SOL.

“And then from there, you can start looking further along the risk curve and at trending narratives and future potential use cases,” said Brian D. Evans, CEO and founder of BDE Ventures. “We’re still very early, just like AI [artificial intelligence] is early, so…

Click Here to Read the Full Original Article at Cryptocurrencies Feed…

[ad_2]

[the_ad id="2529"]