Search the Community

I keep seeing people asking which coins they should buy, or which coin is profitable, followed by a whole bunch of comments with recommendations. Half the time the person who is asking has no idea why they are buying into a coin, other than the fact that it was recommended by someone else on the internet. This is terrible. Either you don't know how to do your own research or you are too lazy. So let me give you some advice. Before you buy into any coin, ask yourself these questions: 1. How much trading volume has this coin had over the last 6 months. (Trading Volume is the amount of money that has changed hands - it's a good indication of demand). If a coin has 0 trading volume or perhaps 20 BTC trading volume, then it's a terrible coin - no one is buying it. So why would you? Look for coins that have over 1,000 BTC daily trading volumes. 2. For the last 6 months or 1 year, what was the lowest price this coin was trading at? 3. For the last 6 months or 1 year, what was the highest price this coin was trading at? 4. How does the current price compare to the answers from step 2 and step 3? Would you say the price is quite high, or quite low or somewhere inbetween? If it's quite high, or somewhere inbetween the risk is higher. If it's quite low, then it has potential. 5. Who developed this coin? What was their vision for it? What features does it have that make it different to all the other coins? When was it launched and how long has it been around? 6. What are the developers doing that might make this coin's price rise in the future? How are they marketing it? Are they trying to get partnerships with other institutions? Is it accepted as a payment method in the real world? 7. In contrast, what have they done in the past, or what do they plan to do which might make the price drop? Are there any upcoming airdrops? 8. Is this coin mined, or are the developers in control of issuing them? 9. How many of these coins are in circulation and what is the maximum number of coins that will ever be issued? What is the market capitalization? 10. How many exchanges is this coin listed on? The more excahnges, the better. If it's only listed on one exchange, you are making a mistake buying into it. 11. Has there been any recent negative or positive news about this coin. Check news stories for as far back as you can go. Has any particular news influenced the price? 12. How does this coin rank on CoinMarketCap, and why is it ranking so high or so low. Until you can answer all these questions and more, you are wildly unprepared to trade and this will more than likely result in loss. Do your own research - don't be lazy.