Various kinds of crypto assets such as Bitcoin, Ethereum , Ripple, and the like that are currently popular are now of interest to crypto investors. It was recorded that until November 2021, there were already more than 10,000 types of crypto assets in circulation.
The several types of crypto assets mentioned above are just a few of the many other types. Investing in more than one type of crypto is a strategy for securing assets. In addition, it can also be a risk mitigation effort if one of your crypto assets is not performing well.
Here are some important points that you can consider in choosing a crypto asset:
1. Consider the Reputation of Crypto Asset Coins
The first tip that you can understand is to consider the reputation of the crypto asset coin first. Choose one that has a good reputation, for example by considering the high level of adoption or use of a crypto asset coin, so that the opinions of public figures or crypto user forums can be an indication of whether the coin has a good reputation.
Examples that can be taken are the types of Bitcoin and Ethereum which have been widely used for buying and selling goods or services online. Then also when the world-class diva, Mariah Carey, joined in providing support for crypto asset investment.
Before deciding to buy a crypto asset, you may need to research its reputation first. Here are some considerations to make as a check-list of your personal crypto assets:
1. What/who/where is the source and origin? Everything you can search on Google.
2. Is the coin popular in the crypto community?
3. Is the coin available on exchange platforms or applications registered with CoFTRA?
4. Is the coin legal?
2. Crypto Asset Technology Development
The features or technology of a crypto asset must be able to be used on many platforms, so that the adoption rate will be higher, and the value will also increase. For example, Ethereum has smart contract technology, allowing Ethereum to function as more than just a trading tool.
If you have deep technical knowledge about crypto, you can study the roadmap or technology development plan of a crypto from dcaprofit.com. Usually, this information is available in a whitepaper or document containing technical information about a crypto asset. You can also look for this information through the community or the latest news about crypto.
Apart from these sources, you can also see the track record of the team that created the crypto asset. A team with good experience in crypto or blockchain technology, or perhaps investment, will be more trustworthy.
3. Crypto Asset Pricing & Availability
The next step or tip is the price and availability of the crypto asset. A crypto asset is usually only available in limited quantities, so one day it can run out and can’t be “mined” anymore. Take Bitcoin, for example, which is “only” available as many as 21 million coins. As of November 2021, there have been 18 million coins in circulation and available for transactions.
This limited number of cryptos apparently also affects its value. Because, based on basic economic principles, the more limited the supply or availability of a product, the higher its value will be.
In addition, you also need to pay attention to the price movements of crypto assets . Basically, cryptos do have volatile price movements. But, is the price going up more, or is it going down more often? Therefore, you should choose cryptocurrencies that show good performance in price movements.