How To Buy Cryptocurrency

Is investing in cryptocurrencies a good bet?

Clearly, not at present.

In fact, according to Forbes: “… looking at cryptocurrencies between 2009 and 2019 the default rate was higher still at 8 out of 10.”

22_10_bitcoin_down-1024x683

How to know which digital asset to invest?

Researchers at the University of Vaasa in Finland have studied the phenomena and posit that positive signs include where:

  • the coins had slightly more stable, and in fact lower, returns over the first month after issuance,
  • where the miners set aside a lower percentage of coins for themselves,
  • the founders are identified and legitimate, and
  • coins with “lower minimum rewards per block, both in absolute terms and relative to their total coins and with a lower controlled supply.

The smart money appears not to invest in the initial coin offering at all but to watch the coin over a period of time to see if it will have staying power.

https://www.forbes.com/sites/simonmoore/2019/05/28/how-to-tell-if-your-cryptocurrency-will-go-bust/#621ba22d3364

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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