VCs had their day. Cryptocurrency offers lucrative opportunities to the ordinary investor.
We are locked out.
Most of us can’t invest in some of the most lucrative investments in history. If you want to, you’ll need a least a million in liquid assets to be considered an accredited angel investor.
Angel investing has allowed individuals to invest in early-stage startups. Often pre-seed before a company even has traction.
These types of risky investments can be very lucrative. But most of us don’t have the means to jump aboard.
But that’s all changing, and you should be chasing the gold rush while you can. (Don’t get crazy, though.)
Cryptocurrency
Every time I see someone touting crypto, I always get on edge. I get random cold messages promising millions from a small investment of $4,000.
I thought it was all a scam. Of course, there is some hype (we are trading fiat currencies backed by thin air, but is any currency any different?).
Crypto launches allow investors the ability to cash in on significant growth.
It’s like buying shares of a startup before an IPO. The main difference is in crypto, and there aren’t many guarantees.
Angel investors often take ownership positions in early-stage ventures. Even while the fledgling company is still working towards profitability.
The risks are high. While everyone wants to invest in $1 billion unicorns, many won’t get near it. The safeguard many of these investors have is the right to recoup losses in the case of a default.
Well, crypto provides an exciting opportunity. Being able to get connected with a cryptocurrency at launch offers an opportunity. It’s interesting because you have the potential to buy a coin that has little value at the start. Like a startup, you can reap the benefit of high growth if the coin has any real value.
It’s fascinating because it’s an opportunity that most people don’t get. Yet, we have a chance with cryptocurrency.
So now the question becomes how do we position ourselves for these launches. Cryptocurrency isn’t something I am an expert at, and by no means am I a financial advisor.
Don’t spend money you can’t afford to lose. I can’t stress this enough. You must understand that.
We live in a time where you could invest small amounts and make significant gains. My brother invested $300 into a cryptocurrency, and it turned into $5,000 in a couple of weeks. Full disclosure–the recent drop in crypto has cut into those gains. It’s essential only to spend what you can lose.
Nonetheless, it’s incredible to see these types of results, but I wouldn’t expect them. It’s like playing the lottery. Yet, there are ways to spot potential coins. If the adage proves correct, buying in low markets might work out for some.
Digging for Gold
The scam factor is a significant issue when finding a legit coin for investment.
Websites for finding Initial Coin Offerings (ICOs):
https://coinmarketcap.com/ico-calendar/
I would follow the same process as early startups when evaluating an ICO.
Evaluating Coins
In a startup, you look at a company in three ways.
1. Look at the product type to see if we understand it and see the potential.
2. Look at the financials, plans, and projections.
3. Inspect the management team.
It’s harder to track down this information for cryptocurrencies. But, there are ways to find the information.
The best source of information is to look at the website for each ICO. That’s one of the best ways to find information about what a coin does.
The Website
My main goal on the website is to find out what will back the coin.
Propel
Propel had a recent launch, and below is their website:
Propel sounds like an exciting launch. It looks clear on its purpose:
Serving partners worldwide, Propel is an unparalleled Blockchain Infrastructure Provider. Our Infrastructure include MaaS (Metaverse as a Service) & DaaS (DeFi as a Service) along with SaaS (Staking as a Service) ecosystem.
I’m not too keen on metaverse technology. So, although it doesn’t pass step one for me, I will move to step two for an example.
Financials
Looking at the financials for this coin is interesting. Information disclosed suggests the currency reached its prelaunch goals before launching. It’s impressive to have that kind of backing.
The company has a whitepaper that details much of the financials and plans the company has in place. It looks interesting.
This launch seems to have decent financials, and the future prospects seem positive.
I try to only invest in technologies I know or something I have time to study. So this is only an example, and I am not vested in this coin.
Leadership
The whitepaper further details the leadership team. I would take the team information and begin digging into top management.
A strong leadership team is vital to any venture seeing success. A balanced team is what I look for related to coin launches. It’s good to have someone with a strong IT background and someone that can handle the financials. Also, a legit coin would have some auditing planned to keep the currency secure.
Dig and Strike Gold
Take some time and look into some coin launches. You might find something worth investing in, or the next Dogecoin. (At launch, you’d be good, don’t get in late like me.)
What cryptocurrencies are you excited to invest in for 2022?