With the popularity of Bitcoin, there are various digital currencies in the currency circle. Some digital currencies can be recognized by everyone and survive, while some digital currencies cannot be accepted by everyone and eventually disappear in the currency circle. For investors who want to make money by speculating on coins, it is very important to select a digital currency that can be accepted by everyone and has a good prospect. So, how to choose the digital currency for investment? Is digital currency really worth investing? Next, let's have a look.

How to choose digital currency for investment?

1. Basic information of currency

The total amount of money, the ranking of the market value of circulation, the highest and lowest price in history, the rise and fall, the trading volume, etc.

2. Read the project white paper

The best way to master a currency is to look at the white paper of the currency. From the white paper, you can know the selling system, equity distribution, functions, total amount of currency, lock up period, whether there is additional issuance, and long-term planning. And its founder, founding team, investor background, etc. Judge the quality of a currency according to the white paper. A more appropriate shareholding is that the internal net ownership of project personnel should be less than 25%.

threeWhether it is listed in the mainstream exchange and transferred to the mainstream digital currency wallet

Whether the currency can be found in the mainstream exchange, and the currency on the mainstream exchange can save some relevant information, because the exchange will check. Some pyramid selling coins, air coins and garbage coins will only circulate on the trading platform set up by ourselves.

When some currencies are unimaginable and unheard of, go to the mainstream exchanges to check. If these currencies are not in any big exchanges, they must not be good ones. Don't believe the noise of his white paper or the gimmicks. Because the exchanges are in the circle, they have more information about the field than the general retail investors, and can better judge what currency is junk and what currency can survive the bull market, Therefore, if you buy coins that they haven't bought, you can only hope for the best.

4. Social governance and maintenance

The so-called community refers to the fan group of a currency and its official organization, including Twitter, official account, WeChat group, microblog, QQ group, telegraph group, etc. The more fans, the more active. A team that is really working will have a manager in the community to solve some problems at any time and carry out publicity and maintenance.

5. Open source code and code upgrade status

Open source code is the technical basis for the generation of digital currency. One of the bases for judging a currency's technical strength. Query the update frequency of currency code to make a basic analysis of the team's technical staff's work effect. If the code is not upgraded for a long time, it indicates that the project party has no intention to develop currency. Release of open source code: Real digital currencies such as BTC release open source code synchronously at the time of release.

6. Related news

The latest news and whether there are negative reports should be roughly understood in terms of domain information and official information, because some information will cause the currency price to rise or fall.

Is digital currency really worth investing?

Digital currency is still worth investing for investors, but we must put our mind right in the process of investment. We must be clear about our risk tolerance. We must not have the experience of gamblers, or we will easily be caught by the investment, causing ourselves to lose money. If you want to make money through digital currency, you must first put your mind right. Many investors will become impatient when entering the market, especially when they lose a lot of money, they will stop selling immediately. This will only make them lose money. You must look at the market from an outsider's perspective, and technical analysis is necessary when investing. How to stop loss and profit in a timely manner when there is a decline depends on certain technologies. If it is really impossible to operate, the smallest way for venture capital is to buy and own or choose fixed investment for a long time, and it is possible to make money in the long run.

At the beginning, many investors hoped that they could make money in the digital currency market to achieve financial freedom. However, from the perspective of the whole market, the price of digital currency is not very stable today, with a large rise and fall. This is also a big test for investors. If you can't treat it rationally, it is very likely to be eliminated by the market. For investors, what you can do is to be as stable as possible and not be supervised by desire.

For ordinary people, if they want to invest in digital currency, they should first learn some relevant knowledge and master the basic knowledge of digital currency. If they do not master the basic knowledge, they will not be able to earn money. Later, they should also know the form of relevant transactions, master the trading steps of major exchanges, and also have trading methods. Understanding these basic knowledge in the process of trading does not mean that you can make money. After all, there will be many problems in the process of trading, such as high fluctuation of the market, the exchange running away, etc., so you should be prepared under this premise, otherwise it is easy to make your money be taken away.

Speaking of this, I believe you have a certain understanding of how to choose digital currency for investment and whether digital currency is really worth investing. In general, the editor here also reminds investors that the currency circle market is volatile and unpredictable, and any investment is accompanied by certain risks. You must have a comprehensive understanding before entering the market, and do not invest blindly.