6 .How To Invest in Cryptocurrencies - A beginners Guide | Steemit Crypto Academy | Lesson 6

Dear Friends,

Last week we discussed about hardware's used for crypto currency mining and also in our homework task , we discussed about cloud mining. There were more than hundred homework task submissions. I'm really glad to see the great interest of members for my course and hope it was helpful to you. Following are the topics we discussed up to today in past 5 weeks. If you missed them please go through them and try the homework tasks by yourself. If you are a beginner it will help you to gain the fundamental knowledge of crypto currencies , trading , mining etc.

Trading Lessons for beginners

Lesson 1 - Introduction to cryptocurrency trading
Lesson 2 - How to setup a trading account in a Cryptocurrency Exchange
Lesson 3 - How to spot trade ? Everything a beginner need to know

Introduction to Crypto Currency Mining

Lesson 4 - Introduction to Cryptocurrency Mining
Lesson 5 - b Introduction to Cryptocurrency Mining - Part 2

Today I'm discussing a new topic. Now if you followed these courses up to today , now you should have a good knowledge about blockchain industry and how market behaves. I know most of you love to do an investment in crypto currencies. But when deciding which currency you should invest ? , you have to consider lot of factors. So today I'm going to discuss the fundamental things we should consider before investing in a particular crypto currency.

Want to invest ? Where to invest ?

This is the question every investor need the answer. Which crypto currency should I buy , when should I buy it and when should I sell it. These are the basic three questions which you need to find answers to gain a profit through a investment in a blockchain based project. It's a really hard decision to make. But through a proper research on a particular project , we are able to predict the future of that project up to some extent. There are lot of factors we need to consider such as project concept , use case of the product or service , competitors , target market , trading volume and exchanges , team members , project partners etc . As you can see there are lot of factors that need to be considered. This decision will decide the profit or loss you will gain. So it's very significant to learn how to select the crypto currency which you should invest.

Every investor is looking for great profits. So pro crypto investors always conduct a fundamental research before investing in a particular coin. So let's consider how to conduct a fundamental analysis on a crypto currency. The objective of this analysis is to discover the potential of the project in future. Fundamental analysis basically consider the factors I have shown in the above diagram. There are lot of scam ico's ( Initial Coin Offerings ) and unstable projects in the market. So through a proper fundamental analysis we can detect those projects easily and avoid investing in them. White Paper of a particular project is the best document to take the idea of blockchain project. It's the business plan or the concept of the project. All the details including the purpose of the project , the road map , the team , partnerships , business plans etc. are included in the whitepaper. So as the first step you should go through the whitepaper of the project and get a general idea of the project. Following are some of the whitepapers of leading crypto currencies. Generally official website of the project provides whitepaper for public view.

Steem-whitepaper
Tron-whitepaper
ETH-whitepaper

You can very easily find the white paper of a any project on internet. You must always have a proper idea about a particular blockchain project before investing your money in it. I'm sharing some videos I found on youtube which explains how to do a fundamental analysis. Different investors follow different techniques for this.. it's always important to learn every technique. Knowledge is money !