Cryptocurrency has grown exponentially in popularity over the past two years. When it comes to investing in cryptocurrency or any form of stock, the first step is performing your due diligence. Due diligence consists of researching, analyzing, and investigating a potential investment. In this article, we will outline three of the top questions to ask yourself before investing in crypto.
Is this a reputable investment platform?
This question is extremely important. Scammers are constantly creating websites that look like legitimate trading platforms when in reality they are not. Have you heard of the company or platform before? Research them online, see if they have any reviews. What claims are they making? Are they guaranteeing profits? Crypto investment platforms and websites that use these types of guaranteed profits claim to entice victims to send them money. Always conduct thorough research of any website, trading, or investment platform before investing any money.
Am I willing to lose the money I’m investing?
Are you willing to lose the money you’ve invested? All investments involve risk. Any website that suggests there is a risk-free investment is a scam. Just like any other investment, there’s the possibility that you won’t make that money back. Will you and your family be financially stable after this investment? Will the risk of losing the money cause financial hardship? Investing can be very exciting, but it’s important to weigh all of the possible risks and outcomes.
Who can I trust to guide me through my crypto investment?
Who can you trust to help you with your crypto investment? It’s likely not the random person asking you to invest on Instagram. If someone contacts you via social media about an investment opportunity, it’s likely a scam. Make sure that you have a trusted person in your life that can help you navigate through your crypto investment. If you don’t have someone knowledgeable to help, do your research online and maybe contact a professional for assistance.
Before investing in any cryptocurrency be sure to consider the options that you have and ask yourself these questions. Take the time to do your own research and think about the questions that are important to you before making a final decision.