How to Analyze Crypto Assets for Long Term Investments
Rancakmedia.com – Cryptocurrency or crypto currency is on the rise among investors, especially millennials. However, crypto has its own individuality and quality because it is technology-based. Crypto is different from typical investment vehicles like stocks. Crypto assets have greater volatility than stocks or mutual funds.
So, can crypto assets be used for long term investment? What things need to be considered?
ICDX Research & Development Manager Jericho Biere said that there are various things that investors need to pay special attention to in order to make crypto a long-term investment tool.
According to Jericho, the first thing to learn is the project presented by the creator of the crypto asset. Investors need to see if the project can provide an answer to the challenges emanating from existing assets and create new economic value.
"So [see] what can be supplied, when the project is finished it can produce value," he said in a virtual webinar, quoted on Wednesday (11/3/2021).
Another thing that can be studied, according to Jericho, is the crypto asset development team because it concerns the sustainability of the crypto assets themselves. By knowing who is the originator of crypto assets, what software is built and its relevance.
Then, another thing that differentiates crypto assets from conventional investment instruments is the community so that investors can observe how the community of a particular coin or token is. In addition, investors can monitor public interest in acquiring various currencies.
"The public interest becomes important when people outside society make large investments," he said.
Jericho claims that if the stock market is considered a prospectus, then crypto assets have whitepapers or blueprints. The whitepaper offers a summary of the future evolution of the coin or token.
Finally, what is no less important is the security system of the security system chosen by a blockchain. Basically blockchain provides efficiency to the economy and can create other technologies that demand a high level of security.
Conclusion Regarding How to Analyze Crypto Assets for Long Term Investments:
Crypto is different from typical investment vehicles like stocks. Crypto Asset Analysis has greater volatility than stocks or mutual funds. Investors need to see if the project can provide an answer to the challenges emanating from existing assets and create new economic value. The whitepaper offers a summary of the future evolution of the coin or token.