When it comes to digital assets, there are all sorts of different options available to investors. However, not all digital assets are created equal. In order to make the most out of your investment, you need to be smart about which digital assets you choose to invest in. Here are a few tips by Bill Schantz to help you choose the right digital assets for your portfolio.
Bill Schantz’s Tips on How to Choose the Right Assets
Consider the Purpose of the Asset
According to Bill Schantz, one of the first things you should consider when choosing a digital asset is its purpose. What is the asset designed to do? Is it meant to be used as a currency, a store of value, or something else entirely?
Knowing the purpose of an asset can help you better understand its value and how it may fit into your overall investment strategy. You should also take into consideration the team behind the asset and their track record. A strong team with a good history is more likely to deliver on its promises than a team that is new to the scene.
Consider the Technology Behind the Asset
In addition to considering the team behind a project, you should also take a look at the technology that powers it. Is the technology well-vetted and secure? Is it scalable? These are important questions to answer before investing in any digital asset.
This includes looking into the actual code behind a project. If you’re not a developer, you can still get a general sense of a project’s code by looking at reviews from independent developers.
Consider the Use Case of the Asset
Per Bill Schantz, another important factor to consider when choosing digital assets is the use case. Is there actually a use for the asset? Are people actually using it for its intended purpose?
If there’s no use for an asset, then it’s likely that the price will eventually drop. However, if there’s a strong use case for an asset, then it’s more likely to maintain or increase in value over time.
One way to determine the use case of an asset is to look at its active user base. If there are a lot of people using the asset, then that’s a good sign. You can also look at the merchant adoption rate to see if businesses are beginning to accept the asset as payment.
Consider the Market Conditions
When you’re investing in any asset, it’s important to consider the current market conditions. This is especially true when it comes to digital assets.
The cryptocurrency market is notoriously volatile. Prices can rise and fall rapidly, so you need to be prepared for the ups and downs. One way to do this is to set stop-loss orders on your trades. That way, if the price of an asset falls below a certain level, your trade will automatically be closed, and you’ll limit your losses.
Consider the Potential for Growth
Finally, you should always consider the potential for growth when choosing a digital asset. Does the project have good fundamentals? Is it solving a real problem? Is there a large market for it? If the answer to these questions is yes, then the asset may have good potential for growth.
Bill Schantz has mentioned just a few factors you should consider when choosing a digital asset. By doing your research and taking the time to understand the asset, you can help ensure that you’re making a smart investment.