There’s a lot of talk about buying crypto these days; and we are in the infancy stage of a new emerging industry which means there’s money to be made. Sadly most of the stuff you hear is all based on speculation; no one is willing to share with you the tricks and strategies to get going the right way.
Many people say you have to look at the circulating supply and market cap, look at the team behind it, what they said the coin is about, come up with a personal decision does this make any sense, you need to review who is behind the audit on the smart contract, do they have other projects as well, maybe coins/ICOs, is there a specific purpose a so called utility for the token or what not.
I bet if you are new to the world of cryptocoins and bitcoin, the above info just made your head feel like its going to explode. It’s OK TO BE CONFUSED! I bet you are thinking, yea I can look at all that info, but how do i understand it, interpret it… ultimately HOW DO I PICK WHICH COIN TO BUY?
I don’t recommend crypto for most people, because its way more stressful than affiliate marketing – after all its speculation… but if you do want to buy, there’s a much simpler way I used with great success thus far. I’m no big investor; hell im a newbie who until talking to a nice guy that knows crypto inside out thought this isn’t for me… but after getting the 101 i decided to get involved, for fun with money I don’t mind losing.
If you want a buy a coin, research it by looking at how many nodes are using it. WTF are nodes Attila? Node refers to a “full” client. A “full” client is a client that owns the block chain and that is sharing blocks and transaction across the network. You want to find a coin where lots of people use it and the market cap is undervalued because then you have a higher chance of it going up if you hold it.
For example, coin is valued at $29 million, but 10,000 nodes (wallets) are being used. That means, 10,000 people use this coin, and total value is at 29 million.
VS – a coin that has a super high market cap (market cap is btw, the current price of the coin multiplied by the total number of coins outstanding — so if there’s 10,000 coins outstanding, and the current price is $1, then the market cap is $10,000) — lets say you have a coin that is market cap at $29 million, but it only has 123 nodes, that means only 123 active wallets use this coin, and they control all of that 29 million. This could mean investor pump n dump maybe? RISK analysis = higher.
Some good resources for due dilligence:
You can check the coin’s node count right here -> https://chainz.cryptoid.info/
You can also check out https://www.cryptocompare.com/ to see what kind of social buzz, and other influence the coin has all over the place like news, websites, blogs, how many people are talking about it, this is like a SPY TOOL if you will on the interwebs pulling in lots of intel.
TIP: You don’t have to dive in deep and spend money right away investing; you can play a game.
Pick 10 coins today based on the info on how to find a coin I just shared above and write down in an excel the details of the coin, total nodes, price right now, then hold it.
This is a game, where you pretend you purchased these in real life, review your results 24 hours later, what happened and write down your observations.
-Did the coin go up or down?
-If it went up why?
-If it went down, why?
You can really learn a lot by applying this basic method I gave away above to build your own strategy and do super well.
Good luck 🙂