Stock vs Cryptocurrency, How to Research About a Cryptocurrency ?
Stock vs Cryptocurrency :
Whenever we pick a stock for investment So we check that it is the stock that is holding the value of the company and how is the performance of that company. We check the balance sheet of the company, such as how much profit is increasing, how much revenue is being generated, along with sales; we also check their intrinsic value. We do proper fundamental analysis before investing in any stock. What to check before investing in cryptocurrency? How to know which crypto is fundamentally strong or not. This is what I am going to tell you in this article. As there is underline business in stocks, it depends on its performance. In cryptocurrency, its price actually fluctuated because of hype, because of news and events, and because of demand and supply.
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How to Research About a Cryptocurrency:
To get to know crypto currencies you will first go to their
1) website and know who they are and what they are doing
2) Will find out his team,
3) who is the founder, how many well know, how much experience is in the crypto industry
4) The higher the market cap of that crypto, the more secure it is for us. Although the risk still remains, the more one is invested in that cryptocurrency, the higher the market cap, then the slightly less volatile that cryptocurrency will be.
5) we will check who has invested in that cryptocurrency. 6) who has partnered with that crypto project Like the Indian government has also worked with some cryptos. Along with that, 7) you will check which wallet has been held. It is not that only two to three wallets have been held, as with Dogecoin, which is somewhere under the control of those wallets. As soon as you sell or buy, the price of the cryptocurrency will fluctuate. Along with this, 8) You read the white paper. Everything will be written in a white paper on their website only about cryptocurrencies. Who are they, what you want to do, if you have a white paper then you will get more clarity.