I’m Jennifer, and I’m a crypto newbie who’s decided to take the plunge and learn crypto – and I hope some of you out there will help me on my journey. If you’re just joining my journey – welcome! You can check out the first post I wrote in this series to learn more about my reasons for investing in crypto.
In this post, I’ll discuss more about my investment goals, how I’m approaching my crypto research, and the seven coins I’m considering investing in.
With thousands of cryptocurrencies out there, deciding what to invest in, especially as a newbie, is definitely overwhelming. This is the first week of my journey to learn crypto, and I’ll be needing your feedback to help me out!
The goal of this week is to take the important step of deciding what to invest in. I already have some ideas that I’ve come across in my research into crypto so far, but I want to hear from you and what you think before I make up my mind.
My crypto investment goals and where I’m at in my journey
I’m pretty much just starting out on my journey to learn crypto. I’m definitely a newbie, but I have already taken one small step in my crypto investing journey.
After researching and writing about crypto for the past couple of weeks, my curiosity was piqued enough for me to create an account on the popular exchange Coinbase. And for verifying my identity, I received $5 worth of Bitcoin. But besides that, I haven’t taken any other actions.
So first up, let me break down my investment goals. First, I’m looking to make a relatively small investment of around $50, at least for this first time around while I’m still trying to learn crypto.
My crypto financial goals are definitely to buy and hold over the long term. I want an investment where I can feel comfortable not having to look at the market every day and worrying about the volatility that the crypto market is known for.
To that end, I’m primarily considering cryptos with established reputations, a history of growth, and good projections for the future. I’m also considering stablecoins such as Tether, which are tied to fiat currency.
However, I am also open-minded to investing in newer coins if there is one that shows a lot of promise and growth. It’s these types of cryptos in particular that I’d like to get advice about since I’m the most unfamiliar with them.
And lastly, my overall reason for investing in crypto is, of course, to get a return on my crypto investment. However, learning more about the technology and companies behind the cryptos is another goal of mine as I start researching which crypto to invest in.
What tech companies are out there making innovations that I’d like to support? Which technology and projects do I feel passionate enough about to invest in? What projects resonate with me?
It’s a lot to think about!
My process of researching crypto
As a crypto newbie, the process of trying to learn crypto is challenging because so much obviously depends on doing good research. How do I even start researching and analyzing crypto?
Well, it’s clear that crypto research takes more than simply reading through Wikipedia.
I’m learning that this gives me a good understanding of the purpose behind the cryptocurrency itself.
- Is the project trying to get its crypto used as a currency?
- Or is it more focused on developing technology that can solve a problem?
- If so, what problem is it trying to solve, and what sets the project apart from the competition?
There’s so much to consider here, like:
- How long have they been in business?
- How long have the founders known each other?
- What are their backgrounds?
- What are the company’s goals, and do they align with your personal investment goals?
I’ve been looking for any indication of high-profile investors or partnerships with other companies that the crypto has. Also, I’ve been looking at the company’s website and social media presence. This gives me a sense of how legitimate the company is – or isn’t.
Equally important is to consider how the crypto is performing in the market. I’m looking at metrics like:
- Market capitalization
- Supply – are there infinite coins, or a fixed amount?
- Distribution – who currently owns most of the coins? Is it truly decentralized, or do the founders hold most of the coins?
- Emission rate – how many new coins are being released at a time and how does this affect the inflation of the crypto?
- Historic price movement – has it been volatile, or mostly showing upward growth?
Tools like Coinmarketcap.com and Livecoinwatch.com have been helpful resources to provide this information to me.
Once I’ve been able to answer some of these questions, the next step I’m following in the crypto research process is to look at the general attitude amongst crypto investors and enthusiasts towards that crypto.
- What are people saying?
- Is there a lot of hype for it, but no clear reason behind that enthusiasm?
- Does the company have a lot of followers on different social media platforms?
- Do they interact with those followers?
- Are people posting and discussing this crypto?
- Does it seem like the coin has the potential to make it to mainstream use?
- What is its competition like?
Once I’ve answered these questions, my hope is that I’ll have a pretty good idea of what that company and crypto are about, and whether it fits with my financial goals.
Which coins I’m considering
After a ton of initial research, I have narrowed it down to these seven coins for my first potential investment. I still haven’t decided which one I’m going to buy yet, but here’s a little bit more info about why I shortlisted these seven cryptocurrencies.
Bitcoin
As the most popular cryptocurrency, Bitcoin has been at the top of my list as I learn crypto. It seems like a great choice to invest in because of its stability and lower risk. Bitcoin has had consistent growth over the long term, which seems to make it a great choice for buying and holding.
Ether
As the next biggest cryptocurrency second only to Bitcoin, Ether is another natural choice since I’m looking for a more stable crypto. Ethereum, the company behind Ether, is also on the frontlines of smart contracts and DeFi applications, which means they have made great innovations in developing these technologies.
Tether
Tether is a stablecoin backed by the U.S. dollar, which makes it another possible option for a more stable first-time investment. Tether claims to be the most widely used digital-to-fiat currency, and it combines the familiarity and trust of the U.S. dollar with the benefits of blockchain technology, including the ability for its users to avoid traditional financial institutions.
Solana
Solana is a direct competitor to Ethereum, and its goal is to try and increase its transactions per second. Ethereum can only handle about 30 transactions per second, in contrast to traditional financial platforms like Visa, which can do tens of thousands. Solana is trying to innovate to compete with these faster transaction speeds, utilizing a unique “proof-of-history” model and other features.
Cardano
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ardano’s emphasis on sustainability and decentralization strongly appeal to me, as does the fact that it’s a proof-of-stake style blockchain, which I think I favor over proof-of-work, based on what I’ve read so far in my journey to learn crypto. Cardano also says it is the first blockchain platform built using peer-reviewed research, and that credibility goes far to make it a legitimate and worthwhile investment for me.
Polkadot
Polkadot is a newer crypto, and I need to learn more about it before I decide if it’s a good fit for me as a newbie. However, it’s a popular crypto investment because of its innovative technology, which allows different blockchains to exchange data without any intermediary. For example, it allows data to pass between Bitcoin and Ethereum.
Polkadot is also known for its speed and ability to process thousands of transactions per second, which it does through its unique structure of a main relay blockchain and various, user-created “parachains” that help take the processing strain off the main chain.
Avalanche
Avalanche is also a relatively new crypto, but it has seen a lot of growth recently. Avalanche’s main goal is to create a global financial network that allows users to trade cryptocurrency easily, without worrying about the different regulations and rules of the markets in individual countries.
Avalanche’s recent partnership with Ethereum shows that it’s sure to be a player in the crypto market, as does the fact it raised $230 million from the sale of its AVAX token.
So much to choose from – I hope I’ve narrowed it down to the right ones for my goals.
Which of the above options do you think I should buy? Or do you have any other recommendations I should consider?
Follow my journey to learn crypto: I need your help!
I’m really am looking for help, and you can join me at any time! To follow along with my journey to learn crypto and get involved, you can follow any of Decentral Publishing’s social media pages at the bottom of my blog here!
- Newbies: learn with me. And if you’re a fellow newbie, hopefully, we can learn more about the world of crypto and become more confident investing in and understanding crypto together!
- Experts: Every week, you can get involved by taking the poll over at Decentral Publishing’s Twitter or commenting on any of our social media pages to share your thoughts with me as I start my crypto research and figure out what to invest in.
So, let’s stay in touch. Once I post my results next week, I will need your help to decide which exchange I should use!
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About the Author
Michael Hearne
About Decentral Publishing
Decentral Publishing is dedicated to producing content through our blog, eBooks, and docu-series to help our readers deepen their knowledge of cryptocurrency and related topics. Do you have a fresh perspective or any other topics worth discussing? Keep the conversation going with us online at: Facebook, Twitter, Instagram, and LinkedIn.
