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Five Factors to Consider Before You Invest in Cryptocurrency

Invest in Cryptocurrency | Unicoin Digital Capital Exchange


It would be best to think about so many things before investing in cryptocurrency because one mistake may deteriorate your investment. Hence, you need to take care of certain information which may help for improving your investment decision. Here, we are discussing five factors for the same reason.

Five Factors Consideration

1. The Cryptocurrency you like

This is vital that which cryptocurrency you prefer and you have information. As per personal suitability, you keep on research, analyze, and collect information about a particular cryptocurrency. This information will help you to find the risk, return, and credibility of cryptocurrency. After that, you can look for a cryptocurrency exchange that is offering your chosen cryptocurrency.

2. How much investment

Now it is time to judge your investment capability and portion of the investment for this particular cryptocurrency. It is always recommendable to use only a small portion of investment on cryptocurrency at first and later on, you can analyze ROI to add investment amount further. It would help if you did not make an investment decision based upon rumors or third-party non recommendation.

3. Price History

This is a significant factor to watch the history of the performance of a particular cryptocurrency. There will always be ups and down in any cryptocurrency. However, you can check the appreciation during a particular time frame and try to predict the future performance to make the trading plan as per market assumption. You can also ask yourself what kind of trading you will do, like scalping, intraday, position trading. As per your trading style, you can further analyze the price history in the particular time frame.

4. Trading Fees

In every trade, there are certain costs involved, i.e., transaction cost or service charge. So you must calculate before the execution of any trade that will help you know your risk and return calculation and a trading plan. Trading fees are nothing but a service charge for each transaction you do. You may compare the service charge of all cryptocurrencies which you have thought in mind.

5. Security

a. Cold storage wallets:

A minimum of 90% of client funds should be in cold wallets to avoid any online scam. You can ask your cryptocurrency exchange about this facility in a clear way. More the fund offline is more the safety. You can check about the type of wallets which is offering by a service provider.

b. Transfer crypto funds directly to a hardware wallet:

Mechanism of transfer of fund from online wallet to the hardware wallet and what security precautions have to be taken during this step. You can ask all these kinds of inquiries before opening an account in any cryptocurrency exchange. Security is essential to safeguard the invested fund before trading.

​​​​​​​c. Multi-signature authorization for withdrawals:

These are nice features that you need two or multi-signature authorization for any withdrawal, and because of this, unauthorized withdrawal is minimized or avoided. You may ask your service provider about this facility available which helps to safeguard your fund ultimately.

​​​​​​​d. Two-Factor Authentication:

This two-factor authentication is essential for login into your trading account for trading purposes so that no other person can open a trading account without your permission. This is generally done through email and phone numbers.

​​​​​​​e. SSL Site Security Certificate:

You should also check their webpage has SSL site security or not. If the webpage is secured, then your information and documents are supposed to be safer because the webpage restricts any fishing or hacking.

6. The reputation of exchange:

The exchange's reputation is given confidence for the security of trading, settlement, transfer of fund, and other kinds of services; therefore, you should look for a reputed cryptocurrency exchange so even if you missed some information, then it won't be a problem at a later stage.


Five factors have been explained above, which you should consider before investing in cryptocurrency. Apart from these factors, there are also other factors that you can ask as well because the more information there will be more clarity while trading cryptocurrency. As you know, cryptocurrency is online trading, so you must have at least the above information for surety of your hard-earned money.