Many new cryptocurrency investors don’t spend enough time learning about blockchain technology. As a result, a lot of newcomers carry a distorted interpretation of what blockchains can do now versus what they may eventually be able to do. To comprehend the technology’s value proposition, consider learning about how blockchain can impact certain industries.
The secure and trustless nature of blockchain means it can help address problems in many areas in the financial services industry such as insurance, remittance and banking accessibility.
Similarly, the gaming industry continues to research and integrate blockchain technology. Examples of use cases include user ownership of in-game items, digital asset marketplaces and royalty payout solutions.
Among other potential use cases of blockchain are energy markets, digital identity and global commerce.
With cryptocurrency being among the world’s riskiest asset classes, knowing the different types of cryptocurrencies is important and can help you understand cryptocurrency diversification.
Fundamental analysis refers to the process of measuring an asset’s intrinsic value by looking at economic and financial factors. With regards to cryptocurrencies, there aren’t yet any widely used valuation methods. That said, strongly consider doing the following:
Key considerations when diversifying cryptocurrencies include risk appetite, failure rate and types of use cases.