After we have shown into which categories crypto investments can be divided, the question arises how concrete investment opportunities can now be found. In part 2 we show the common practices for finding crypto investments.
In the following we focus on the funding of projects, other forms of investment are only briefly mentioned.
Clever investing with Bitcoin formula: asset management rethought
The transparency of digital asset management paired with the expertise of professional financial planners: With Bitcoin formula, you always have an overview of your assets and profit (nevertheless) from an individual strategy for your investment portfolio. Find out now how you can make more out of your assets with the Bitcoin formula!
Funding: Find lucrative projects
As already indicated, the fundings are aimed at financing new projects/companies and are therefore associated with a higher risk. On the other hand, higher returns and extreme increases in value are hoped for. Precisely because the projects are new, the amount of information required is particularly high. Key figures, structures and team members have to be analysed in order to get a precise picture of the project. No matter how good a team is on its way in the wrong direction, it is just as ineffective as an unorganized team with a grandiose idea.
ICO’s are a special form of funding. The Initial Coin Offerings offer, analogous to the IPO on the stock exchange, the possibility to acquire coins directly from the development team as an investor in the initial phase. It should not be underestimated, however, that many investors have been able to benefit from the potential, especially due to the current hype: Black sheep join the ranks of the ICO’s, who try with strange ideas to collect a lot of money in a short period of time and only provide coins that can never be used because the project is not implemented.
So let’s be clear: ICO’s are generally much riskier than investments in existing and widely used currencies, because it is not certain whether the currency will ever be accepted.
In the “ICO” part of this investment series, we go into the analysis in more detail.
Other investments for the Bitcoin trader
This category is particularly vague and therefore difficult to bind to a fixed set of guidelines for identifying investment opportunities for the Bitcoin trader according to onlinebetrug.
Anyone who recklessly invests will soon be in the red. For this reason, it is important to keep this category up to date in terms of knowledge. There is no uniform platform, such as a stock exchange, on which investments can be made centrally. In order to set up a Dash master node, for example, one should understand the technology behind Dash and the meaning of the master nodes as well as the remuneration structure in addition to the investment case in order to be able to make a well-founded decision.
Mining is rarely attractive to private individuals today. While a few years ago it was still profitable to run your own machines in the living room to mine Bitoin and Co., large investors are skimming off the returns, so that the mining of existing currencies is becoming increasingly unattractive.
If the main objective is not only to achieve short-term speculative profits, but also to be invested in a crypto currency in the long term, then the following factors should be taken into account:
* USP – unique selling point of the crypto currency A) from other systems and B) from other crypto currencies
Diversification: The Nonplusultra
The importance of diversification should also be mentioned here. While some investors are sticking strictly to the theory of investing in a small number of investments, the majority advise portfolio diversification, i.e. spreading the investment sums across different projects or investment forms. This is to minimize the risk, because e.g. strong fluctuations of a special currency can be balanced by other currencies in the portfolio.
Our Investment Recommendation – The Crypto Compass
As the largest German-language media platform for blockchain and crypto currencies, we know this market better than almost anyone else. With the Kryptokompass, the first market letter for digital currencies, we summarize the most important news every month and provide exclusive assessments of market developments, innovations and upcoming ICOs – always critical and independent.