The world of crypto is growing by the day. It’s one of the industries that sees the biggest rise of them all. We can see new currencies emerging on the market every day and there are lots of those who crash at the same time, not being able to fulfill the promises they made to their clients.
It’s crucial to know which currencies are worth investing in and what you can do with them later. The entire blockchain technology is highly complicated for those who are not familiar with it, but if you dive once, you will quickly pick up what’s happening and become a pro.
In this article, we’re talking more about the HODL token, is it worth investing in it, and what you need to know about the crypto market in general. What’s trending, and what needs to be avoided. Follow up if you want to know more about this topic, and learn everything about this particular token.
What is crypto?
This is a term that is used for everything connected to blockchain technology. Cryptocurrencies are part of this technology, but they are not the only thing that this technology is connected to. There are lots of other features, which we are not going to talk about right now.
All these things connected can be referred to with one term – crypto. With this in mind, we can continue our exploration through cryptocurrencies and the world connected to them.
Many people love the investing game and they see the rising trends of crypto as a great idea to put their money in this market. They are right. The market right now is worth around $1.6 billion, but with a 7.1% CAGR, it is supposed to be worth $2.2 billion by the year 2026. Learn more about it here.
That explains why people love investing in crypto, and if you’re interested too, then you should do it as fast as possible. The sooner you start, the more chance for growth you have. For example, the market cap of Bitcoin, the most famous cryptocurrency in the world, has a limited supply that is going to be depleted soon.
It is similar for all currencies. Once they reach the top of their supply, their owners will see a rise in demand and the price will be even higher than it is now.
Why invest in the HODL token?
One of the most important issues that you need to address when thinking about investing, is the whitepaper of the currency creator. The whitepaper may be uploaded under different names, but in general, it is the documentation that the creator provides for their project.
Through it, you can learn about their tokenomics, plans, governance of the currency, and everything connected to the project. There, you should read more about how serious they are and whether the currency has a future in front of it or not.
If there isn’t a whitepaper on the website of the token, then you can’t trust them. The HODL token has it provided and you can read everything about their plan. If you like what you see, then you can feel free to invest in their business.
What are the red lines and when not to invest?
Those projects that are not transparent enough can’t be trusted. Make sure they have everything displayed publicly. After all, this is the point of blockchain technology. The entire point is to have everything publicly displayed and everyone to see what is happening.
If a particular token has no information about its future, plans, governance, but only empty promises, then you know that you should be looking for something else. Investing in them is clear to fail. Always invest in something that has back up from prominent investors and is a serious project.
Where to invest?
This is an ongoing debate that has no clear answer that will make everyone rush to put their funds in a particular currency. Some famous people are trying to raise the interest of some of them, but they never last for too long.
For example, Elon Musk is known for investing in Doge, but his tweets are not creating a huge fuzz for a long time, and the market only jumps in short periods after which it goes back to normal. The Dallas Mavericks owner, Marc Cuban invested in a few DeFi markets, but this isn’t making tremendous changes. He managed to lose some money despite its great influence.
In other words, you can never know where to invest, but you need to follow your hunch. It’s the same as the standard stock exchange. People always ask which company is going to rise next, but there’s no sure answer or an insight call to tell you what’s going to happen next.
Instead, you need to play according to what you think is going to be best. Read more about their documents and plans, follow the chart and how things are going, and only then go forward.
What’s trending now?
Right now, the highest price is held by Bitcoin, and the Ethereum coin is in second place with a huge gap between them. However, investing in them won’t assure you that you’re going to profit later on. They already have high worth and no one can guarantee if they are going to jump even more. See more about them here: https://www.forbes.com/sites/seansteinsmith/2021/05/04/bitcoin-ether-the-flippening-and-future-trends-for-crypto-development.
Going through the currencies that rising now is a much smarter move. See what’s happening with the coins that are not as popular, and investing in those that seem to grow in the future. Remember, there’s no sure path, everything brings a certain risk with it.
The crypto world is highly complex, and no one can give you a precise answer about what’s going to happen next. However, some coins are serious, and investing in them is smart. We talked about one of them, so if you’re about to invest, be sure that this is a great choice.