The crypto market: distinguishing the real from the fake
The crypto market: distinguishing the real from the fakeThe crypto market: distinguishing the real from the fakeExpertentippsExpertentipps

With thousands of digital coins on the crypto market, finding the right cryptocurrency to invest in can be quite a challenge. Here are some tips from our experts that can help you get started.

Find the right place

When it comes to securities, you’re dealing with big names like Deutsche Bank, which are also tightly regulated. Cryptocurrencies, on the other hand, are new technologies. And from a transaction that has been carried out, there is no turning back.

One should nevertheless choose the right place for crypto trading very carefully. Reputable providers include BitGo, Anchorage, Fidelity, Bakkt Warehouse and Coinbase.

It doesn’t matter who’s behind it

Some of the founders of major crypto exchanges are college dropouts. But even Elon Musk himself didn’t graduate from college in South Africa. Bitwise Asset Management CEO Hunter Horsley commented:

‘Cryptocurrencies are changing the way we think about what is credible. Many of the most attractive crypto projects have simply appeared out of nowhere. They came from people who would easily be overlooked.

Are crypto exchanges and digital currencies regulated?

Warrants, bonds, stocks, and other securities must be registered with the Securities and Exchange Commission. Crypto markets also fall into this category. In Germany, BaFin is responsible for this, in the EU the
EBA (European Banking Authority), in the US the SEC (Securities and Exchange Commission). Regulation of crypto exchanges is a sign of reliability, but it doesn’t necessarily mean that the coin will increase in value or that it is safe.

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Size of the community

Projects such as Initial Coin Offerings (ICO) usually have a community of followers who follow you. Of course, you never know if these are real people or bots. That’s why you should pay attention to who is talking about new cryptocurrencies and how. When it comes to things like blockchain and other technologies, that’s a good sign. People are only discussing price? That’s not so good.

Reliable sources of information about liquidity

The liquidity of a token is about how easy it is to buy or sell it. The higher the liquidity, the easier. To determine it, you should look at such numbers as trading volume. Big numbers are a good sign, but only as long as the source of the information is reliable. For example, it’s always good to get data from an established exchange. </p>Number of

tokens in the crypto marketA

common criticism of Dogecoin was that there were too many tokens flooding the market and overwhelming the demand for the token. Also, it is not a good sign when one or two people own the majority of the tokens.