Get Into Cryptocurrency Trading Today

The crypto-economy has been on a growth streak. Even though considered the currency of the future, cryptos have become a reliable asset. They are fast becoming integral to the economy as most people look to own them. 

Like any other investment, profitability is key when investing in crypto. You need a coin that comes with assured return on investments. 

Here are the top factors to look into to identify a highly profitable cryptocurrency; 

1.    Functionality 

The first way to ensure you are investing in the right assets is understanding the use. All the digital currencies come with specific features. Stay clear of any currency that comes with duplicate features. 

A coin that comes with functionality attracts many users. For example, Ethereum has grown due to several use cases of the platform. It does not only work as a store of value. It also supports other cryptocurrencies and DApps. It also allows for the development of smart contracts.

The use case also helps you determine the competition. For example, don't go for a coin with the only function as a store of value. Bitcoin has already nailed the spot. Avoid coins with genetic use cases.
 

A profitable coin comes with a logical use case. The competition in the crypto world is too much. Some coins would only want to use the terms decentralized and other jargon. Only invest when the use case makes sense. 

2.    The developing team 

The developing team of the coin is as important as the project itself. Research if the coin has information on its developing team and management. They have to give each member's real names, pictures, and credentials. Including this information is a sign of competence from the project. 

You have to stay vigilant when dealing with digital currencies.  You need to research more on the information provided. Google the photos on the websites to ascertain legitimacy. Avoid anything that is duplicate or fake. You might also want to look up more about the team's qualifications. Look into their work experience and skills. 

A profitable cryptocurrency is started and run by reputable members. They should also have verifiable Twitter and GitHub profiles. Having a public team increases responsibility and accountability. 

Most people value reputation. They would not risk letting investors down when their reputation is on the line. This brings the possibility of success. 

3.    The whitepaper 

The whitepaper is the most important document in the cryptographic economy. It details everything you need to know about the coin. 

The whitepaper has information on what the project is all about. It also has the amount needed for funding, the number of tokens, and the growth plan. The ICO details are also available in the white paper. 

The whitepaper is the first place to get information before any other source. It has the functionality, developers, and management. It also determines your rights as the holder of the token. It would help if you had the document, no matter how boring or long it is.  

A successful cryptocurrency has a detailed whitepaper with all the necessary information. Be wary with an overly optimistic white paper. It should also be easy to understand. Avoid anything complex with too much jargon. 

4.    User Reviews 

The top cryptocurrencies are those that attract user interests. The crypto world knows how to spot the real deals. Follow through to learn what the community thinks of the asset. 

As a digital asset, the virtual currencies have a vibrant online community. These are forums where the crypto users share opinions about the different aspects. BitcoinTalk is one of the most popular message boards. Follow through on conversations about your preferred digital currency. 

Other than the forums, also look into social media. Digital coins mostly use Twitter and Reddit. Look into the dynamic crypto social media pages for the coin's development. Successful coins have dedicated social media pages. They use these for development updates, analysis, and other market news.

Use keywords like "scam," "coin," and "shit" when researching a coin. Also, be wary about too many positive reviews. A currency must attract both supporters and the doubters. Too many positive reviews can be a case of paid comments. 

Decide with information from various sources.  

5.    Pricing History 

Digital currencies are volatile. You are never too sure whether the coin's value will rise or dip. The only way to look into it is by understanding the coin's price history. Most of the coins tend to have similar price movements. This has led to a popular say, "the best predictor of future behavior is past behavior."

Look into the coin's volatility nature. Understand how the market behaves with different price changes. A highly profitable coin is resilient and bounces after every dip. 

Understanding the price movements also help in knowing the best time to invest. You want to buy at the lows and sell at the highs. That is the only way to ensure profitability. For that, you might have to use different tools like technical analysis. You might also need sites like Coinranking to observe the price history and legality. 

Bitcoin is one of the coins with great price history. It already has regular seasonal pricing for the investors. 

The pricing revolves around halving. Its users are sure it will regain even if it loses value. 

Bottom Line 

The thousands of cryptos available makes choosing one hectic. Profitability is one of the factors to look into. A profitable coin comes with functionality and a reliable development team. 

The currency must also have a detailed white paper and favourable user reviews. The price history can also provide insights on profitability. 

Still, be wary of coins that promises too much. Do not fall for guaranteed high returns. Crypto is speculative, and no digital currency offers assured returns. 

Scam is another issue in the Bitcoin economy. Look out for coins that are highly dependent on referrals and new members. Some coins require the user to invest first before gaining any information. After which the investors have no way out.

A closed source coding is also another red flag. Don't consider such coins no matter how profitable it seems. Everything gets down to due diligence. Take time to study every coin. Only invest when assured of what you are getting into. 

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