Changes in cryptocurrencies in 2022 are enough to scare many investors. People have lost thousands of dollars investing in cryptocurrencies they don’t know or research. The decline in Bitcoin and the losses in many cryptocurrencies behind it continue to scare investors.
So what should be considered when choosing Cryptocurrency in 2022?
While cryptocurrencies are at the top of the agenda with price movements that are not seen in traditional markets, these movements also attract the attention of investors. According to the news of Şenay Zeren from Hürriyet; Cryptocurrency Market, which is a market with a high risk rate, is increasing its market volume day by day with the number of investors, even though there are fluctuations.
Crypto money experts remind that the crypto money exchange to be traded should be researched and selected in order not to experience big losses while investing, and they often warn that they should choose the crypto money they will invest in the right way.
So how to choose the right cryptocurrency to invest, how to read the Project Document? Examining the whitepaper, known as the whitepaper, before investing in the cryptocurrency is one of the most important ways to get the project right. Reviewing the whitepaper can provide you with information about the purpose, fundamentals, and specifications of the project. In particular, the purpose of the project is among the most important information; If the points and reasons on which the project is based do not convince the investor, it may be necessary to question whether it is the right project. Experts also state that the areas in which the names involved in the project work and how long they have been working are also informative for investors.
While it is expected that the regulations of the US banks regarding the crypto money markets will guide the crypto money markets; Disclosures of regulatory bodies should also be followed carefully by investors. Huobi Global Regional General Manager Alphan Göğüş and Paribu CEO Yasin Oral explained how the crypto money investor can choose the right coin, how to read the project document and which news feeds investors can follow.
It is recommended that the crypto money investor first read the project document of the coin he is considering and decide accordingly. However, the number of investors who do not know how to do this is also quite high. What advice can you give to investors in this regard?
Huobi Global Regional General Manager Alphan Göğüş: Not just cryptocurrencies; Being an ‘investor’ in general requires being careful and careful and taking conscious steps. Of course, the most important step to take in order to make a correct cryptocurrency investment should be to concentrate on the white papers (technical documents), which we can define as the identity card or passport of crypto assets.
First of all, how viable these projects can be today; Its purpose at the point of departure is invaluable. If the factors and reasons on which the project is based are not sufficient to convince the investor, the investment may not be the right project. It is not enough to simply read the project to remove existing question marks; It would be a good step to follow related articles and videos in this process. However, individually the most important step should be to ask as many questions as possible for the projects and to get maximum answers to these questions.
Focus on What Projects Mean When Buying Cryptocurrency
Now people are more experienced and knowledgeable about cryptocurrencies than before. However, many people still lose thousands of dollars in the stock market, as if throwing them away. Investors should first have detailed information about the product they are going to impose sanctions on. When buying or selling crypto money in 2022, it should be considered that it is necessary to know the infrastructure of the projects.
In this process, it will be informative for investors in which areas the names in the projects work, their experiences and how long they have worked.
Another issue that will come into play here is the token economy. In a project you are interested in, projects that can answer questions such as how to create a token, how much, when and at what price will come to the fore. Here, first of all, “Can some wealthy investors dominate the project?”, “What is the limit for individual investors?”, “What will be the maximum amount that the project will increase?” Questions like:
The technology aspect of the job should also be considered. Many projects listed today are managed by smart contracts on different blockchain networks. The absence of any software vulnerabilities in these smart contracts is also very valuable for our investments. For this reason, many projects have started to add “audit” information that smart contracts have passed the cybersecurity audit, both on their websites and in their white papers. This should not be overlooked.
After taking all these steps, it is very important to make investment choices in a truly reliable field. If investors can devote time to whitepapers, they can be confident that their analytical skills will improve over time.
What should investors pay attention to when choosing the money they will receive and how should they protect themselves from risk in 2022?
On the other hand, not everyone can master technological literacy very well. In these cases, it is very important to trade on a reliable platform. In other words, the transaction should be made from a platform that already does this research on behalf of the user and acts with the priority of protecting the user.
What advice can you give crypto investors other than reading the project document of the coin they will invest in? What should the investor pay attention to when choosing the coin to buy and how should he protect himself from risk?
It is extremely important for investors to manage their assets correctly. Cryptocurrencies, blockchain, DeFi are the future of finance, but it’s also outside of the traditional investment tools we’re used to. In this sense, it is very valuable to be able to manage risk correctly.
It is not possible for everyone to have the same level of financial literacy. But the primary goal in developing this literacy is to minimize risk as much as possible. In this period of increasing access to information for investors, it is extremely important to follow global developments closely. It is also necessary to pay attention to factors such as the exchange of the investor’s choice frequently freezing withdrawals and deposits, the presence of bots or the inability to trade instantly due to the lack of sufficient volume in the price ranges.
The phrase “playing cryptocurrencies” is used by some people who are somewhat familiar with cryptocurrencies. Cryptocurrencies are a playground, they are not part of a betting platform. It is very important that users develop this awareness while companies manage the perception on this issue correctly.
For example, as Huobi, we share daily market analyzes from our social media accounts to increase the literacy of our users. We also have the Huobi Learn platform where we keep our users informed about the latest developments in cryptocurrencies, blockchain, DeFi and aim to improve financial literacy. Here, too, we help investors access up-to-date information.
Invest With Small Coins If You Are New
It should also be noted how well the chosen crypto exchange is able to capture a global perspective. Those who will invest in cryptocurrencies for the first time can experiment with small amounts first.
In many countries around the world, including the USA, people of all ages, professions and business groups are investing in cryptocurrencies and it has become a part of all daily conversations. There are very valuable names who have really created value for this market and do not hesitate to share their knowledge and analysis. Following the names that create value in the industry can be much more meaningful than listening to your neighbor or colleague.
It is necessary to act with correct information, not with dubious investment advice. In this context, the content we share through our communication channels can be viewed. We have a serious content pool as written, oral or video production so that users can reach the right information.
Don’t Get Excited on Instant Ups and Downs
Sudden rises or falls in cryptocurrency exchanges have always excited investors. However, compared to other exchanges, the cryptocurrency exchange is actually a more unstable and booming world. By controlling your emotions, you can make money without risk.
When it comes to cryptocurrencies, it is not enough to just look at the instant price performance, it can even be misleading. The circulating, total and maximum supply, global trading volume, monthly and annual price performance of cryptocurrencies should be examined. In addition, the performance of cryptocurrencies on global platforms, their content on social media channels, Google Analytics data, Github events can be viewed.
Of course, we come to the same point again: Transactions should only be made on reliable platforms. This is a very important factor in both the protection of your assets and the reliability of the projects presented to you. Cryptocurrency trading platforms keep your assets securely, which is something that cannot be ignored.
Fed Chairman Powell’s definition of inflation as ‘temporarily high’ was shelved after his speech in the Senate the previous day, and we can now see that we are the Fed, which is struggling with inflation.
Every decision made by the FED will continue to affect the crypto world deeply. In this process, please be careful and do not act without research. Let the things you predict, not what everyone knows, come true.
Choosing an Exchange to Buy Altcoins
Yes, now we will examine the issue of choosing an exchange to buy altcoins. As you know, there are hundreds of cryptocurrency exchanges in the cryptocurrency world. There are very few exchanges that are reliable and allow you to make your transactions quickly. So you have to make a good choice.
It is important which exchange the crypto money you buy is traded. Because not every cryptocurrency is listed on every exchange.
Another point is the volume of crypto money you will invest in the stock market you are a member of. If the cryptocurrency has a low trading volume, it may take time for your transaction to occur. For this reason, you can register on the Huobi exchange, where many projects are listed and with a high trading volume, by using this link for your altcoin investments.
Future Planning of Altcoin
Above, we talked about altcoin’s white paper or any project. This whitepaper also includes information on the future of the altcoin. In other words, when the project will be done, what steps will be taken, whether there will be an update in terms of software and its listing on exchanges are important for the progress of the project.
As you know, there are thousands of cryptocurrencies. The planning of projects of these cryptocurrencies is not always as it should be. However, there are such projects that this planning works like clockwork. Selecting such projects will be important for investment.
For example, the dates of a very important operation called “burning” will also be included in the white paper. So what is this coin burning? We said above that the supply of a cryptocurrency is important, and burning this coin is one of the processes that reduces the supply of the project.
The project’s management network deletes cryptocurrencies from the world at specified time intervals and is never released again. The value of crypto money, whose supply is decreasing, is increasing in this direction.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.