Buy coin into value, not hype

source : freepik.com

Until this day, Crypto is one of the hottest topics related to investing. This is what all investors expected, but recently, the best-performing Crypto, Bitcoin, was crashing. One of the factors was a tweet by Tesla owner, Elon Musk, tweeted that Tesla stopped using Bitcoin as payment, on the grounds of protecting the environment. His tweet affected the coin’s movement chart to drop dramatically, even by almost 40%. However, that’s not a major reason to avoid COIN stock.

Some crypto experts say this phenomenon is not due to Elon Musk’s tweet, but the coin’s popularity is at its peak and is pushing the price up very high and fast. However, some investors welcomed it positively and thought that this move would stabilize the coin’s price. So, when the price goes down, the commission tends to get smaller. And if the market is in a prolonged slump, the trading volume may fall as well. This means that there is less demand for coins and an excess supply of coins. This made the coin’s popularity commonplace and caused the coin price to stabilize.

This instability is normal. Every business has its risks and investors need to measure how big that risk is. The good news is, with a little research and planning, there’s no need to be afraid. Anyone can get started with investing and invest in a way that can help them reach their personal goals. And contrary to what you may have heard, you don’t need a lot of money to start investing, either. There are the 3 things to consider when buying cryptocurrency:

a. DO YOUR RESEARCH. Knowing anything about Crypto assets, such as is the coin a security token or a utility token? Is the coin mined using proof-of-work or proof-of-stake (also the differences)? What’s their future project and how their fundamentals? Maybe you can look for a good guide in cryptocurrency.

For example, Cardano is a decentralized third-generation proof-of-stake blockchain platform. Atala Prism, one of three of Cardano’s products in a common purpose to create a technology platform that will ignite the positive change the world needs. Case study of Republic Georgia, where the Ministry of Education and Universities in the Republic of Georgia want that the graduates need quick and easy access to their degrees when they join the workforce. Atala Prism enables students to receive, store and send their achievement right from their smartphone, no need for background checks, saving universities and employers valuable time and resources. Businesses, governments, and individuals can reap the benefits of this smart, decentralized solution. This information is very beneficial for investors, to see the sustainability of the coin in the future.

b. PRICE HISTORY. Cryptocurrencies are highly volatile. This is due to speculation, hype, pump and dump schemes, and a lack of regulatory oversight. Looking at a coin’s price history tells a story. A coin’s price may also correlate to other coin prices, stock market moves, or world events. For example, when the price of Bitcoin is increasing rapidly because famous people are using bitcoin for their business. The increase in bitcoin purchases pushed the Bitcoin price up. And it gets less when they say they’re going to sell the coin to the public.

c. PSYCHOLOGICAL INFLUENCES. It can be scary to see a market downturn and want to immediately cash out. Or, you may be seduced by headlines announcing a popular startup’s upcoming IPO, and consider moving your investments to go all-in. Not so fast! Staying committed to your plans is a smart strategy. If you want to give yourself the best chance at mid-to-long-term growth on your investments, it’s best to avoid emotional decision-making, and instead think things through based on your research, timeline, and goals. Take a look at your investments regularly to review your portfolio, revisit the investment landscape, consider how your circumstances and goals may have changed, and revise your plan as needed.

By considering the three items covered in this article when choosing coins, investors can reap significant gains. There are many more metrics that can be evaluated but the key principle to remember is: Buy into value, not hype.

Sources : atalaprism.oi, Republik Rupiah, luxurylifestylemag.co.uk

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Starworks Global

Starworks Global

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Starworks GLOBAL is a blockchain technology developer providing an integrated ecosystem of products targeting the global Tourism and Hospitality industry.