How to Better Choose a Winning Investment
Hey all,
I wanted to write a short post this afternoon outlining strategies you can adopt to strengthen your portfolio today. Within Crypto and especially with more traditional investments like stocks and bonds, there are what seems to be an infinite amount of options for you to choose to invest in. There are certainly "gold-mines", for a lack of a better phrase, that you could strike early and ride the profits, and there are certainly scam projects as well. Here's a few things you can do to find those smarter investments:
Look for investments that still have room for growth. There's a common phrase that says you'll never be the first to the market, but you better not be the last. If you are looking into an investment, and you notice it is starting to run, see if you can find a good entry point so you can join in on the fun too.
See what others are saying about it. Investments are run by market supply and market demand. If people are talking heavily about it, see what they have to say. They could be saying the investment is a scam because of X, Y, and Z. That's when you have to kick it into gear and read up on it yourself and develop your own theories.
Look at the trading volume. Much like my last point, trading volume is a measure of trust with the investment. If you see that there is heavy trading volume, you know that more people are investing in the project, which could strengthen your views on the projects. However, this doesn't mean 100% of the time that it is still a good investment. Always do your research and run some analyses. If you don't know how to interpret volume, my friend Fei wrote an awesome article regarding the emotions behind volume trading. Check it out on steem here:
https://steemit.com/crypto/@officialchinaman/the-importance-of-volume
- Always read the whitepapers / company's mission plan. This is my last point and probably one of the most important. Always read up on what the company says they are promising to do. Are these actions possible? Can they do it in the time frame they are giving themselves? Are there spelling errors? Did they care enough to fix any simple errors? Are they promising to be "the next bitcoin"? Let the company impress you or turn you away from a project.
As always I hope you enjoyed my post. If you did, go ahead and leave an upvote and follow me for more content like this. Keep crushing it!
Alex