Since 2022, the entire cryptocurrency market has come under a strong correction, some assets have completely left the market, and some have lost value. Regardless of the correction phase, funds, large corporations with billions in turnover, are fundamentally behind the projects. There are many projects that are actively developing even at the correction phase.
according to their roadmap, in general, they have great and necessary functionality for the cryptocurrency world and new technologies. People believe in Bitcoin, in its growth, but it is difficult to expect a 300% price increase in the short term. In this case, it is better to focus on new projects, they should be invested in, and some are already on the market, but have not yet shown their potential.
What risks should be considered when investing in cryptocurrency?
Before buying a cryptocurrency, investing in digital assets, you need to understand the possible risks. The sphere is not regulated, there is no protection from scammers, hackers, and also, it is important to find the right “entry points” to the asset, at a favorable price. It is not uncommon for beginners to make purchases of assets at the peak of price formation, followed by a correction, and hence an unrealized loss.
The project can be promising, with an excellent team, idea and implementation, but if you buy coins at a high cost, you will need to bear losses in the short term. At the same time, it is better to invest in fundamental projects than to invest in temporary hype.
It is always important to remember that long-term investors earn many times more than short-term speculators, so young projects with the prospect of growth by hundreds to thousands of percent in 2023 and instruments already known on the cryptocurrency market in which you can safely invest part of the funds with a view to 2023 will be presented below. Investors in any market are always analyzing and looking at a number of factors. The main ones are:
News background. A person does not have to scroll through the news feed every day and study a lot of material. It is important to filter the topics, and important news includes listings on stock exchanges, partnerships with large funds, technical changes in the project itself, and attraction of new investments.
benefit of the project. The asset should be of future benefit and have an impact on certain areas today. Considering platforms for Daps, you can talk about quality by technical characteristics – network speed, efficiency, and other advantages. For gaming assets or Deify, the community, the growth and development of the team will be important.
A reputation to keep track of in any project. Scandals reduce the attractiveness for long-term investors. Any malfunctions, hacker attacks, deception of customers – it is better to bypass the type of fraud and cryptocurrency of such a project.
Project age. In situations where the project is 1-2 days old and the creators are talking about millions in profits, a large percentage of growth, then you need to think about what the catch is. There are mechanisms to artificially increase the price of an asset. This type of manipulation is a common bubble to take money from inexperienced investors.
It is very easy to increase the value of a young asset with a small capitalization, any good news can push the value up. For short-term trades, this might be a good deal, but not for long-term holding of coins.
Liquidity. Often, bad projects do not have a liquidity pool – you can buy an asset, but it is impossible to sell it. Smart contracts can be checked here
Community growth and behavior. If there are followers behind the project who believe in the development, then we can talk about the future of the asset. Without a community, even Bitcoin was just code.
Readiness for risks. Any investment involves risks, but with the possibility of receiving thousands of percent of profit during the year. In 2021-2022, there were a lot of such stories, but a contribution to TOP cryptocurrencies will not let you lose all the funds on the market, but with young projects, not everything is clear.
Coming to the cryptocurrency market, you need to understand how much money is allocated for investment, how much will be included in the risks. We will analyze several new cryptocurrencies for 2023 with the possibility of investing in them and fundamental projects that you need to buy to protect your own funds. Be sure to leave room for buying BTC, ETH and save some stablecoins in case of force majeure and the opportunity to buy coins at better prices. At the same time, stablecoins also need to be distributed, having on the balance sheet assets of different blockchains USDT, BUSD, USDC, etc.