Essential things to study before buying any cryptocurrency
Due to sudden rise in Bitcoin price grab the people attention towards Cryptocurrency . Most of us Start imaging 5x, 10x figure in their mind. investment in crypto is same like investment in IPO of a stock market. Before invezting jn IPO we study the past performance of the company and then we invest . Same thing also applicable to crypto investment.
Before starting to the investment in crypto lets understand ICO , it is stand for Initial Coin Offering and same like IPO of stock market.
Essential things to study before buying any cryptocurrency
- Difference between Centralized Crypto and Decentralize crypto
Basically crypto are of above two type , centralized crypto are basically owned by company or foundation for example Ripple XRP. Decentralize crypto not own by any company like Bitcoin , Decentralize crypto works on principal of supply and demand and no control of government neither on transaction nor on supply. centralize crypto have control over supply and demand for example Ripple have control over XRP supply in the market. Govt may ask ripple network to show their transaction details in future.
As most of the country struggling a lot to regulate crypto in their country especially India ,China US and Korea. As I predict investing in centralize crypto is more secure because it would be very hard for Indian government to ban centralize crypto like Stellar Lumens and Ripple XRP because both are already exist in Indian Financial System and use by Indian banks. Stellar is used by India's biggest private sector ICICI Bank and Ripple XRP uses by Yes Bank and Axis bank.
- Is project open source or not ?
It is most important factor to invest in crypto, most of the centralized Crypto project are not open source like Ripple XRP . Always try to invest in open source crypto Project Because if Project get discontinued then someone will come and take responsibility. Open source project have huge community of developers which result smooth and steady development of the project.
- Discuss on social media
Browse the social media pages of the crypto you want to buy. Join the telegram channel of they have and feel free to ask anything. participate in the forum like Reddit and Altcoin Discussion and discuss , closely observe what other think about that crypto. You will get lots of info to invest or not the crypto you are thinking to invest.
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