Meta: Are you curious as to what makes a good crypto deal? No matter what type of investing you wish to do in this sector, you have to be able to spot a good offer.
If you are slightly new to the world of crypto, you might still not quite have the eye that is needed to identify a good deal when it comes along. Unfortunately the world of cryptocurrencies is still very much full of people attempting to make a quick buck. You need to know how to spot the signs of a good deal, and how to spot those tell-tale signs that everything might not be quite as it seems.
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Legit Platforms
The first thing you should always do is ensure that you are trading through legitimate platforms. There are so many options online for places to buy BTC and other popular coins, so you really should not have to look too hard to find somewhere that suits you.
Such sites are likely to have been around for quite some time, and should have already facilitated thousands of trades. They should be secure, and should offer plenty of information about the site and some of the deals there. Some platforms could even have resources and guides to help you become a better trader.
However, even with all of this in place, there is no guarantee that the deals on the site can always be up to code. There is always the chance that a scam can slip through the protections in place. On top of making sure that the site is secure, ensure that they have checks and tools that you can use to report a scam if you come across one. If they are able to shut things down quickly, they will hopefully prevent other people from losing out thanks to the scam.
Whitepapers
One of the most important parts of any cryptocurrency is its whitepaper. This is the all-inclusive how-to guide to the currency. If it is missing or unavailable to read, that is a definite red flag that you are looking at a scam. In such a case, you need to back off as quickly as you can, and not even consider investing in the coin no matter how good it otherwise might appear to be.
The whitepaper is essentially the full explanation of the currency. It should explain why the project was conceived and the vision that the founders have for how it will grow and expand. Everything from the blockchain to the coin itself should be explained properly, and when you have finished the whitepaper you should feel more secure in what it is offering.
However, if the whitepaper does not read very well, that is a sure-fire way to guarantee that something is afoot. If it feels like the developers are being deliberately vague or misleading when writing their whitepaper, it could be an indicator that they have something to hide. If you feel like you come away from the whitepaper with more questions than when you started it, you should look for other options.
Sensible Use of Jargon and Buzzwords
At the end of the day, cryptocurrency is going to be like any other industry. There are industry-specific terms and buzzwords that you need to make sure that you understand if you want to start trading here seriously. However, that does not mean that you should accept any brand that is overloaded with jargon.
If you open a whitepaper or come across an ad that seems to be nothing but jargon, it is a guarantee that the developers are attempting to hide something. Buzzwords look flashy for a reason. Though they might make an advert more exciting, there is no guarantee that there is anything beneath their words.
Just as you might look at a whitepaper with a more critical eye, so should you approach an advert that appears to use a lot of jargon. There will be some terms in there that have to be there because they are specific to the sector. However, if it appears that the developer is over-relying on buzzwords to market their crypto, there could be a very real reason why they are attempting to make it seem flashier.
Natural Growth
With crypto has come a rush of people thinking that they need to advertise it here, there, and everywhere. You have likely seen these adverts before on social media. People create flashy graphics and lay out all the advantages of choosing their deal over others. As convincing as these deals might look, they are not always the best choices to opt for.
If someone needs to heavily market their crypto scheme, it could be because they are trying to market it to as many people as possible in the shortest amount of time. From banners on websites to countless paid ads on social media, it can appear everywhere. When it does, you have to ask yourself, why are they doing this? Fixating attention on this growth and trying to bring as many people on board as they can is often, unfortunately, a sign of a scam. The developers could be attempting to bring as many people on board as they can before they dump the market and make off with the proceeds never to be seen again. It is, unfortunately, something that we see far too often in the crypto market. If you see a new type of coin that is being heavily marketed, you should be wary of what it can offer.
A more legitimate coin will be able to speak for itself. It will have a natural growth trajectory that has sustained itself over a significant period of time. These types of coins will not need to pay for advertisements in this way. Instead, they will naturally draw interested parties to them as they will have a legitimate service to offer. While you might be able to jump on a certain coin’s bandwagon in the early days, this is completely different from buying into a scheme that only seeks to push the cost of a coin’s value as high as possible before a planned collapse.
Sensible Returns
Most crypto programs are going to offer you a certain rate for your returns. You need to make sure that this timeline, whatever it might be, is one that makes sense to you. If something appears to be moving too fast, or offering returns which actually simply aren’t feasible, you need to make sure that you fully understand where this promise for return is. A program should always be able to lay out a clear strategy for its returns (it should even be present within a whitepaper), and if it is instead missing, you have to wonder why.
For example, you might come across a deal that is offering a 1000% return within a few months. This is a little unfeasible, and you have to question why. It does not matter if it is a new coin on the market or one that is well-established like bitcoin, it shouldn’t be able to give you a return of that size and within that amount of time. You might also see offers that tell you to invest a certain amount and then see a certain return weekly or even daily. However, such offers are not sustainable. You could quickly find that such a return will instead dry up.
Though a return might not be quite what you expected on a deal, you have to seriously consider whether or not it is technically accurate for the investment you wish to make. If you are entering a competitive atmosphere, you might find that returns are not as good as there are lots of people fighting for the best deals. Likewise, a coin that is just getting underway might not be the best at first, but you can expect some great deals if you wait in the long run.
How to Find the Right Deals for You
When browsing for crypto deals, you need to make sure that you are searching for the best offers for you. Know yourself as a trader, and work to establish some goals you wish to see both in terms of what you are investing in and the returns that you wish to see. It can be worth following some investing podcasts and taking time to explore your own preferences. If you know what you like to invest in personally, you might be able to develop a feeling for what might be a good investment, and what might be worth leaving alone.
At the same time, you need to make sure that you are not overly cautious, as you could end up passing on what might be a good deal. Knowing when to take risks and when to hold back will be incredibly important as you navigate the world of crypto. Never be afraid to dive in and see what is on offer from other parties. With a little luck, you should be able to find some great deals on offer. Make sure to educate yourself on common crypto scams, and ensure that you always keep yourself and your funds safe regardless of the type of trading you might be engaging with.
Source: Plato Data Intelligence: PlatoData.io
