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Are you new to crypto? Are you worried about investing in the wrong thing? Take a look at these top 10 crypto tips! Our Crypto Content Creator, Chris, has carefully selected some of the most critical things that you need to know before investing.
@InvestAnswers perfectly demonstrates this with his made-up GRQ (Get Rekt Quick) token parody. His video bigs up a token that has ZERO fundamentals for an investment. Shortly after the video, someone created GRQ with a 2BN token supply. It even got listed quietly on Binance! The video showcases how easy it is to create a #Sh*tcoin for a classic pump and dump. Don’t be a victim of this.
Does the token have an over the top 150% APY reward and outlandish #tothemoon price predictions? The chances are something is wrong. If the token can offer you and everyone else 150% APY, how can it function and remain liquid?
It is important the token you are investing in offers long-term value or does something better than an existing competitor. Otherwise, it may lose out to first-mover advantage & not generate profitability. Finally, can you explain it to someone else if required?
The general rule of thumb is that if it is promoted by a celebrity, it warrants scepticism. E.g. Kim Kardashian & Floyd Mayweather promoting Ethereum Max or recently Tyson Fury and Floki.
Before you invest your hard-earned money, you have a right to know the details behind the project. Satoshi Nakamoto’s famous written plan for Bitcoin established the groundworks for decentralisation. If there’s no written plan, what are they hiding?
Understanding the project will help identify what the circulating supply should roughly be. For example, if the token is promoting scarcity, but has a quadrillion circulating supply, then it is not what it says it is.
If yes, then this is a major red flag. When someone owns an amount of the project that large, it goes against the very fabric of decentralisation. If you invest in a project like this, you run the risk of a rug pull!
There is a reason why Bitcoiners say “don’t trust, verify”. It’s very easy to fall victim to believing in false promises made by paid influencers & promotors. The best things will sell themselves. If you’re being sold something, ask yourself why that may be the case.
Generally, having a low time preference is safer because you’re not anticipating the 100x gain next week. Having a long-term outlook enables you to become more knowledgeable on the project, which increases your conviction over time.
FOMO is real and when you see the next animal coin gain 10,000%, it may entice you to become the next millionaire. In reality, the majority will get rekt chasing a pump and dump. Do your own research.
