Liquidity and fungibility of a new coin are the alpha and omega for investment
What is the use of 10,000 Turbo coins if they are not listed on the exchange and traded? If no one is buying these Turbo coins or exchanging them for other cryptocurrencies, then it is written into the blockchain unalterably and free from manipulation forever that the 10,000 Turbo coins are assigned to an specific address. The person with the private key to this address can move the coins. But where can they be moved to?
Make sure the tokens are liquid
For this reason, it is of crucial importance to follow the media and online news carefully. It is a lot of work, but it is related to a lot of money, and that should not be forgotten.
The chatter on the various channels, predominantly Twitter, then Telegram and Slack, as well as the relevant blogs and crypto websites frequently discuss ICOs. If you keep yourself apprised of all the latest happenings as they occur, you will inevitably develop an instinctive feel for the coins that are sooner or later going to be listed on the exchanges.
Initiators are frequently interviewed in the various media, appear at conferences or maintain some kind of internet presence. You have to try to find information on exchange listings. You can, of course, go directly to the exchanges online and read their blogs to find the information you need. As previously stated, you have to make some effort if you want to invest your money sensibly and profitably.
Pre-ICOs and private sales
Many ICOs in the past sold out very quickly. Sometimes, that was a matter of seconds, as in the case of BRAVE, an ICO that took in $35 million in under thirty seconds. That was a new record, but other ICOs have also sold out in a flash. Anything is possible in the crypto world.
When these things happen, many annoyed investors stand on the sidelines with long faces. Somewhere, though, there is someone who wants to sell their coins, but a lot of people then buy these coins from the ICO. Sometimes this is done directly, peer-to-peer, or via an online exchange.
While this is an opportunity, you must tread very carefully. There are small exchanges that are very flaky in their function and are not to be recommended. It might even be an exchange set up specifically for these coins. You have to examine the exchange very carefully before you make a transaction. A Twitter user commented on this situation as follows: “Any coin that can only be sold/traded/used in one place, would be a big red flag for me.”
Exchanges and CoinMarketCap
Luckily, there is a website you can go to for help: coinmarketcap.com, which has over 1,600 cryptocurrencies listed at the time of writing. This website provides information about market volumes of coins, the volumes of the last 24 hours, and other helpful indicators.
Price without volume is worthless
If the new coin makes it to this website, that is a positive indicator that you can even get on board after the ICO.
However, the volume must definitely be noted because if a coin has risen by 80 percent, that is a long way from meaning that it is a winner. In a total trading volume of $300, 80 percent or even 8,000 percent doesn’t mean very much in terms of value.
For comparison, the Bitcoin trading volume in Mai 2018 was around $5 billion, Ethereum around $2 billion, both of which are robust and compelling sales. Comparatively, sales of $300 or even $13,000 are not compelling by a long way. So, beware.
So pay attention to all the said factors and info bites of this course to make sound investments. We are close to the end. There is one more chapter to come. It will be very important for you as I explain what a pump-and-dump-scheme is. A must know to protect your investment.
Stay safe and control your Private Keys
Only information, not investment advice This course is not just about the opportunists and rip-off artists that lurk at every turn; it is also about the enormous opportunities that proper ICOs offers to investors. However, it must be stated categorically at this point that this course is only intended to explain and inform. The statements in this course are in no way intended as instructions or advice for investment, nor can they be construed as such. Any investment in an ICO and every purchase and sale of cryptocurrency is undertaken at your own very high risk, and should not be based on any of the statements presented in this course under any circumstances. Do your own due diligence in every instance before you participate in any transaction