Investing in Cryptocurrencies: Things to Consider
Since its first introduction post the global financial crisis of 2008, cryptocurrencies have seen an exponential boom. Coupled with the uncertainty surrounding traditional financial institutions and the growth in Bitcoin’s value, many have shifted their holdings from traditional financial assets to digital financial assets.
Presently, more than a decade after Bitcoin’s release, the blockchain-cryptocurrency has diversified manifold. Especially with the rise of DeFi, we are now witnessing a profound interest about these innovations, driven primarily by their potential and promise. However, to be able to adequately benefit from such developments, one must begin with a proper understanding of what it entails, especially in terms of making an investment. In other words, one must make well-informed decisions, and in this article, we intend to offer some essential pointers in this regard.
Factors to Consider Before Investing in Cryptocurrencies
Cryptocurrencies are digital assets or tokens which one can buy in exchange for traditional fiat currencies or other crypto-assets. When buying such assets, one must take some precaution and do their utmost due diligence. These steps will include the following:
- White Paper: Before investing in a coin, it is always wise and advisable to read the project’s white paper thoroughly. This will give you information about the coin’s objective, its blueprint, and its current stage of development.
- Market Capitalization: Also known as market cap, this is the circulating supply of the coins and its value. Make sure to check if the coin is in partial circulation, which means that the coin’s future price, following its market release, is uncertain. As such, market capitalization indicates the coin’s projected value, but this can’t be the sole factor for the investment decision. For one, it can very well be an inflated value. In general, a low daily volume and high market capitalization could be a sign of a “pump and dump” scheme.
- Trading Volumes: Check the coin’s liquidity and trading volume in the recent past. Usually, higher volumes mean better stability, although as an investor you should aim to buy at a lower price and sell at a higher price. One might even buy coins with low volume, but that demands additional caution and background check on your part.
- Developer Presence: By far, this is one of the most important points, as anyone who can code can make a cryptocurrency, but it might as well be a fraud. All major important coins will be talked about in forums. Its code should be available on open forums like GitHub. So, the point is that it takes a lot of time to come up with a genuinely good idea in the cryptocurrency space. Make sure that you are not just investing in any altcoin, but wait for the actual brilliant idea.
Hybrid Bank Cash (HBC): A Coin that Ticks All Boxes
Hybrid Bank created the much-needed bridge — a state-of-the-art, crypto-based credit rating system for financial institutions and Non-Banking Financial Companies (NBFCs) to assess Fintech solutions while offering crypto-collaterized loans. In doing so, Hybrid Bank caters to exchanges, miners, and individual users.
Partnering with the BitForex exchange, Hybrid Bank has listed its native token — Hybrid Bank Cash (HBC) — on the former’s open finance platform, namely CAPP town. In turn, this strengthens HBC’s inherent value, while enabling users to access a wide range of blockchain-based applications and services. Presently, BitForex has over 4 million active users, and listing HBC has added to the ecosystem’s stability.
Both Hybrid Bank and its partners are backed by an intuitive and expanding community of developers. Furthermore, as elaborated in the project’s white paper, HBC — as a robust utility token for the lending industry — has multiple use-cases within the Hybrid Bank ecosystem. In all, HBC quite rightly ticks all the aforementioned boxes.
How to Buy HBC?
At the time of writing, HBC is listed on two globally-accessible exchanges — BitForex and ProBit. On BitForex, one can buy HBC against Bitcoin (BTC) and USDT (Tether), the detailed procedure for which is elaborated in this article. On ProBit, HBC has BTC and KRW (Korean Won) trading pairs.
The total supply of 10 Billion HBC can be leveraged variously within Hybrid Bank’s 360-degree financial ecosystem, which includes solutions such as enterprise-grade threat management, encryption key management, cold wallets, multi-sig wallets, and WAF-based DDoS protection. To learn more about Hybrid Bank and the HBC token, we urge the reader to visit our website and/or read our white paper.