Investing series - 04 - Inform yourself on Crypto!

 Hello Guys!

If we speak about crypto, we know that the news have a big impact on the crypto market. If you want to buy and hold for short period of times (days to months), you clearly need to watch the news. For longer period of times (years), you need to look at the project and utility of that crypto and less on the news. News have impact on the moment.

So, here are a few sites where you can inform yourself on crypto:

• Coindesk
• Yahoo
• CryptoNews
• Indiatimes

Here's a few examples on how you can take advantage on news:

Example 1:

There's a just released news, a few minutes old, about a cryptocurrency that will win a SEC process or it will change the networkor anything positive about that crypto. This means that the price will rise quickly, if you think it's a real good news for that crypto, you can either buy and hold until it will really have an impact (ex after the process is won) or you can buy and sell a few days later, after the hype from the news is finished

Example 2:

There's just a released news about a cryptocurrency that it's bad / illegal or anything like that. Nothing changed in the coin's project but there are bad news. You still trust that coin but others don't, so they sell and the price drops. You buy the dip and wait other to forget the bad news and gain trust again. That coin will probably go back where it was.

Example 3:

You just bought a coin with a market cap of 3 Billion $. Someone who owns 35% of the coins just donated all of them (aprox 1 Billion $). So, in order to use those money, they will sell the coins over a period of time. The price will drop, so you can either sell and buy when they will finish selling that big amount of coins (might take months), or you can hold for that long period of time.

If you want to buy and hold for a long period of time, you need to understand how crypto works and then you need to understand the particularities of the cryptocurrency you want to buy and why it would be better than other cryptocurrencies.

So, first of all, I recommend this youtube video or any other video you choose to understand how blockchain and crypto works.

After that, you can read this to understand more about bitcoin and this to understand more about ethereum, the two big cryptocurrencies.

So, when you want to buy a cryptocurrency, you should look for those factors:

• How many coins are out there?
• How many coins will be added every month?
• How many coins will be there maximum and when it will reach the maximum amount of coins?
• What taxes are there for every transaction?
• What's the current market cap?
• What's the utility of this crypto?
• What big companies work at it / have partnerd with it / have invested in it?

There might be many other questions that you should ask when you buy crypto. You can drop yours in the comments.

If there are any questions, please ask.

Thanks for reading-To the moon!