As of February 2022, there are over 10,000 cryptocurrencies on the market. And half of this amount appeared in the past 12 months. It is becoming more and more difficult for a beginner in cryptocurrency investing to choose a profitable option and not fall into the hands of scammers.
Last year can be considered a breakthrough for cryptocurrencies. Their number increased by more than 5 thousand units, and capitalization grew by 50% – from 1 trillion to 1.6 trillion.
After all, at the peak of capitalization reached the mark of 3 billion dollars. Investing in crypto is a great way to make quick money if you know how to buy new cryptocurrencies. They are showing explosive growth. Consider what to consider when choosing a coin for German investors so as not to become a victim of scammers.
Features of investing in “newcomers”
Over the past 12 months, in the process of placing new tokens, the creators of various projects have attracted about $31 billion. Developers use this tool to raise funds and further develop their offspring. Investors from Germany can participate in the financing of startups during the ICO stage in order to get the maximum income in the shortest time.
Cryptocurrency ICO is a process very similar to the IPO of securities. That is, altcoins become available for purchase even before listing on the exchange. A limited circle of investors can buy them at a low price and earn on the sale after the price rises. Processes similar in principle are IDO and IEO. But the principle of earnings for investors remains the same. Therefore, for a better understanding,
we will continue to understand the initial placement as ICO, IDO and IEO. The main plus for investors is that promising projects show a rapid growth of tokens in the first days of trading. If you successfully invest, you can get growth of up to 1000% or more.
You can study projects that are being prepared for initial placement on specialized sites on the Internet. For example.
the CoinMarketCap service. All projects are presented there in the form of a list, when you click on the name, you can find out: Date of placement of tokens; Initial cost of the coin; Site dedicated to the project; Place of sale of tokens, if it does not take place on the exchange. where tokens are placed. For example, for Solana it is Solanum, for Polka dot it is Polka starter and so on.
Promising projects in 2022
The main difficulty is not how to buy new cryptocurrencies, but what tokens to buy in order to make a profit, not a loss. Experts in the field of cryptocurrency investment distinguish several options:
A token called Qureshi Network will be used as the basis of a solution used to store other types of cryptocurrencies. That is, the creators want to offer users a solution for the secure storage of various assets in one place. A feature of the wallet will be the convenience of using it to perform various operations.
When placing, the developers are going to sell each token for 6 cents. The sale is scheduled for mid-February. In the process of financing, it is planned to raise about $2 million. This, according to the authors, is enough to implement the project.
A token that launches a multimedia platform. It broadcasts sports competitions of various clubs. The infrastructure of the future project is based on blockchain technology, that is, a distributed registry. The placement is scheduled for February. The cost of the coin in the ICO process will be 12 cents. The developers plan to enter the centralized cryptocurrency exchanges in the 2nd or 3rd quarter of this year.
The main danger of investing at the initial placement stage is the risk of running into scammers. According to analytical studies, 4 out of 5 projects that appear on the market are scams. The main goal of the developers is to collect the money of gullible investors and disappear with them.
However, even if the creators really want to launch the project (that is, they have no intent to cheat), ICO does not guarantee earnings for the investor. Experts in the field of cryptocurrencies say that 99% of the tokens entering the market do not bring profit to depositors.
This way of investing is remotely similar to gambling. That is, investment in the classical sense of the word is not. The situation is further complicated by the fact that beginners and experienced stock investors do not understand a new area for themselves. Such an investment is justified only by the fact that a large amount can be earned from the explosive growth of the exchange rate.
Reducing the risk of losing funds
Despite the above, there is no need to refuse to invest in new projects. It is enough to know how to buy new cryptocurrencies. First of all, you should not get information from telegram channels and social networks.
If some public on Facebook or Telegram tells that the token will “take off” at the start and make investors millionaires, it is hardly worth trusting such messages. Thanks to him, investors from Germany and other European countries will be able to choose profitable options and avoid fraud.
The main features that characterize a reliable project are also: Developers. It is necessary to study the public information about the team and check that it contains people “with a name”. Or that this team has already created and released successful projects.
Investors. It is better to check whether large investment companies or private investors have invested in the project. Most often, they are better at estimating projects. That is, the investment of money on their part is a certain guarantee of reliability. The idea of the project. “Shoot” those projects that contain a progressive and people-needed idea. That is.
you need to understand what “pains” the project solves and how successfully. And also to determine whether there are prospects for practical use. When can the asset be sold. The rules of the initial offering may provide for a ban on selling for a certain period of time. Therefore, there is a risk that the token holder will miss the “peak” of the price and not take all possible profits.