Hi Folks, What are all factors that one should consider while investing in cryptocurrencies (like transaction fee if that's one)? Please put some light on this.
Thanks.
Transaction fee should be the factor you consider least when investing in cryptocurrencies.
Your intent is to invest? This means that you don't plan to transact in an out of the currency or use the currency to pay for things. If you're not conducting transactions you won't incur transaction fees.
Here's what you should consider:
- If investing in a coin other than Bitcoin, what features does the coin provide that makes it different and beneficial in a way that Bitcoin doesn't?
- What's the expectation for the target coin to gain greater adoption going forward?
- What's the current price? (Lower price offers greater leverage for future growth)
- What wallet options are available to you? How easily can you get out of the coin into any other coin or fiat if the market in that coin starts to fall?
Which coins are you looking at?