crypto tips

Crypto Tips! 10 Useful Tips For A Crypto Beginner

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.

1. Don't FOMO into hype without doing your own research

@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 #Shitcoin for a classic pump and dump. Don’t be a victim of this.

2. If it sounds too good to be true, it likely is!

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?

3. What does it do?

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?

4. The project must have a strong team behind them with reputable investors & partners

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.

5. Are they transparent?

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?

6. Look out for its circulating supply and market capitalisation

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.

 

7. Are there a few addresses that hold over half the supply?

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!

8. Invest in projects that do and not just say

It is important to distinguish between tokens that already have foundations in place compared to ones promising something soon. E.g. Solana has proven its scalability this year. Whereas Cardano has struggled with delayed dates

9. Understand your time horizon for the project

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.

10. Leave your emotions at the door

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. Research, find the blue-chip Cryptos, then layer into them hard!

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