What are the things you need to consider if you are going to invest in new cryptocurrencies? (checking potential, doing background research, etc.)
I think it is always important to understand the risk of the whole crypto thing. You should have investment goals and knowledge in the domain. It's almost like the first time of the purchase.
There is always a risk with crypto. Some coins and tokens are riskier than others when it comes to volatility. The value of Bitcoin and Ethereum shifts every day so I would recommend that you do your homework before choosing to purchase volatile crypto.
A lot of sportsbooks and casinos are now accepting stable coins such as Tether and USDT which are pegged to the US dollar. Exchange rates for the dollar also fluctuate daily but the shifts are not usually as dramatic as they can be with crypto. When I am using crypto for gambling I am always trying to work out the dollar value of my bets which is not always easy. You could land a bet and still end up losing because the value of the crypto crashed!
Always dig into the fundamentals first, who's behind it, what's its real-world use, and how strong is the community? Don’t fall for hype make sure it’s not just another pump-and-dump.
@Amyxx Absolutely true, Understanding the risk is the most important part. Having a clear understanding of your goal with a well defined solid strategy and a good grasp on crypto can make a huge noticable difference.
@Graham Bowall Thats a great point, Graham. Volatility is one of the biggest concern especially with cryptos who are newer and lesser known in public space , when you are evaluting a crypto what kind of specific research do you usually focus on to access volatiltiy.
@Adtya Couldnt agree any more. Fundamental analysis is the key, and being good at it puts you far ahead in the game. Actually it is very easy to get caught up in the FOMO or fake hype and doing fundamental analysis can save you from this pitfall.
You should do lot's of research especially about the project team and developers, their track record, experience and expertise.
@quantumpulse I always use stable coins such as Tether and USDT if they are accepted by the online casino (they are accepted at many casino sites). Before I buy these coins I will check with Coinbase or another credible crypto site to see the latest trends to confirm that they are indeed stable. If you use BTC or ETH then they can fluctuate so wildly that you can end up losing money with the exchange back to fiat currency even if you win at a casino 🙁
