Have you ever read the Botcoin white paper? Do you do this type of research before investing in cryptocurrencies?
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I am assuming that you mean to say Bitcoin whitepaper. The answer is that I have never read the bitcoin white paper because I never really had any substantial Bitcoin holdings.
Although I do believe that it is very important for me to read it even if I don't hold it. The reason is simple, because that's where it all began. Bitcoin is a genesis point for all this world of cryptocurrencies and to understand it is essential for any serious investor. I have been meaning to read it for a while and I would like to thank you for the reminder - perhaps I would start reading on it now.
Here are a few points that I take care to research before investing in a cryptocurrency.
1. First and foremost these are the questions I ask:
- I need to know that why does that coin exist?
- What is the problem that it is going to solve?
- Why would people would want to use that token?
Thankfully these questions can be easily answered if you take the time to do read the whitepaper and the website.
2. Real world use
For me a coin that has an actual real world use case holds a lot of potential. I am a firm believer in the fact that crypto will survive by adoption and not speculative investment. This means that I would love to see the big players come in and invest more in crypto but I would love it better if we try to start using crypto in real life.
If a coin can provide people a reason to use it in real life - Than that is perhaps the single most biggest reason for me to buy a coin.
3. Developers
I don't really need to tell you about the importance of this....
4. Community
This where the fuel for the fire is. A hardcore community alone is perhaps the single most important factor for survival of a coin. Loyalty is much undervalued - don't let anybody tell you otherwise.
How many followers do they have? Would the community hold when fudding begins? Are radical enough to stand their ground against some crazy whale action?
5. Technical Analysis
This is one point that I am mostly clueless about. All I know is that the the biggest to the smallest investment house in the world need to do this before making a investment decision.
To the question in your title, my Magic 8-Ball says:
Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.
Being honest here, I have read it multiple times and while I understand the concept give my use of it today, the whitepaper was still only a very technical concept that has been developed over the years. The reason it has been successful is because of the factors you well mention that have helped drive the interest an adoption to where it is today. It is now the foundation if the decentralized technology behind most new projects out there.
I guess reading it is more of a ritual than anything else...... okay maybe not as outdated as a ritual but maybe something that all people who wish understand what crypto is about need to do.
Personally my interest is also in understanding the journey Bitcoin has taken to reach where it is today......... considering that the Bitcoin is the genesis point for most crypto it makes even more sense.
Your tips for investing in crypto are spot on. Real world use is a biggy. Are people actually using the coin? I have not read the bitcoin white paper because I am not a bitcoin fan, but I have read the steem one over and over again :-)
I just noticed that you have not used all of your witness votes yet. I hope that you will consider @steemcommunity as one of your witnesses