With thousands of tokens floating around the internet, it's not always easy to figure out whether or how to invest in cryptocurrency. Here are some tips and things to watch for. ⬇️ qz.com/2055803/how-to…
1⃣ If it seems too good to be true, it probably is. While some firms promise high returns, virtual tokens tend to be high-risk, may not be regulated, and investors should be prepared to lose all their money. qz.com/2055803/how-to…
2⃣ Check out the code. By going directly to the code, investors can judge whether a founder knows their stuff by examining their programming chops while also looking for weaknesses to a hack. qz.com/2055803/how-to…
3⃣ Where are the assets kept? In the US securities market, financial assets are usually kept at a big, highly regulated bank. Crypto tokens, because they are built on different technology, add another wrinkle to this service. qz.com/2055803/how-to…
4⃣ How big is the project’s community? Initial coin offerings (ICO) and other types of crypto projects typically have a following of enthusiasts. Are those supporters humans or bots? qz.com/2055803/how-to…
5⃣ Who owns it and how much is being created? It can be a red flag if one or two people own almost all of a particular asset. Likewise, it’s useful to see if the market is being flooded with a new token, potentially swamping investor demand. qz.com/2055803/how-to…
Sniffing out a promising crypto enterprise is often more art than science. When it doubt, just go back to rule No. 1: If it sounds too good to be true, then maybe it is. Read more: qz.com/2055803/how-to…
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