After spending a few years watching the world of cryptocurrency evolve, we’ve learned that most altcoins are scams (or at least overhyped). And if you’re going to try your hand at investing in any new coin, you need to be prepared for disappointment – and also understand how to avoid getting scammed by these kinds of schemes. So here’s what we’ve learned: If you don’t have a lot of money to start with, don’t invest it all into one coin; instead spread it out across multiple currencies with similar use cases but different development teams or founders.
The coin has to have a use case, and the use case has to be something people will value.
The first step to choosing a coin that won’t entirely fail and disappoint everyone is understanding what makes a good currency. What does it have to have? First and foremost, the coin has to have a use case. The use case has to be something people will value. That’s because only if your coin has value for others will it also have value for you.
The second part of this equation is that those who hold your coins need confidence in their future utility of them; otherwise, why would they buy them? You can’t just print money out of thin air; if no one accepts it as payment then your currency isn’t worth anything at all (except maybe as toilet paper).
A good team comes next.
The next thing you should consider is the team behind the coin. It’s important that they have experience in the field, can communicate with their community, are able to adjust to changing circumstances and manage the growth of their coin.
If you don’t know anything about the team behind a currency you’re considering investing in, it might be worth doing more research before making your decision.
Resist the hype of a new coin launch.
Resist the hype of a new coin launch. If you are excited about a new coin launch, or if you want to invest in one, do your research first. Don’t be fooled by the hype of a new coin launch. Do not buy into the hype of a new coin launch!
Read the fine print.
To ensure your investment is in a secure, stable and trustworthy currency, read the whitepaper. The whitepaper is an official release that outlines all of a coin’s features and should be easily accessible on their website. It’s also important you look at their roadmap to see how they plan on executing towards achieving their goals.
Another good indicator of whether or not an altcoin will succeed is who is behind it. While there are plenty of legitimate cryptocurrency projects that have no founder or CEO listed (which can be beneficial as it allows for anonymity), these types of currencies are generally associated with scams, exit scams and Ponzi schemes since there are no real people behind them to hold accountable for any wrongdoings done in relation to said coin (read how to avoid ponzi schemes).
If you’re considering investing in an altcoin but aren’t sure which one would work best for your needs, check out their social media accounts! A lot of cryptocurrency developers will post updates about what’s going on behind the scenes at least once per week so if you want up-to-date information about what’s happening within the community then this could be a great way for you to stay informed throughout each stage until launch day arrives (or weeks later). So keep checking back every couple of days just to make sure everything sounds legit before making any decisions!
Don’t pay attention to price jumps and falls.
You might think that the price of a cryptocurrency is an indicator of how much an investor thinks it’s worth, but this is not always true. There are many factors at play when determining how much a currency should be worth, and some of them can be manipulated by miners and exchanges (like Mt. Gox).
Keep in mind that your investment isn’t necessarily done when you buy into a new coin; if it doesn’t succeed, you’ll probably lose all your money anyway! If you’re looking for something with longevity and stability, then there are better investments out there.
If you’re looking to invest in an altcoin, one of the first things you should consider doing is checking out what experts in the field are saying about it. The reason for this is that if people who are knowledgeable and experienced in the field can’t agree on which altcoin is likely to succeed, then it’s unlikely that you’ll be able to predict its future with any accuracy.
Now, that’s how to choose an Alt Coin Currency that won’t entirely fail and disappoint everyone.
We hope we’ve given you some insight into how to choose an altcoin. The most important thing is to be cautious and keep your eyes open for red flags. If the idea behind a coin seems too good to be true, or if the people behind it are shady or inexperienced, then it probably is. If everyone else seems to be hyping up a new coin but nobody can agree where it’s headed in the future, stay away! There’s no need to waste your time or money on something that won’t work out anyway.