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How to reduce the risks and complexities of cryptocurrency investment

Jul 19, 2017 Posted /  3935 Views

How to reduce the risks and complexities of cryptocurrency investment

How to reduce the risks and complexities of cryptocurrency investment:

Bitcoin marked the beginning of the cryptocurrency industry in 2008. Since then, it has remained a field which had many risk factors, many potential features that no other industry provided, and has huge profitability for its users. After the Bitcoin, there were many successful projects such as Ethereum, Litecoin, Waves, etc which provided chances for more and more users into the cryptocurrency field. The reason that a large number of people are attracted to this digital money is the features it offers such as Decentralization, security, anonymity, fast and costless transactions and the list goes on.

New cryptocurrencies related to different fields providing different solutions are being launched day by day. More and more users are now entering into this new revolutionary way of monetary dealings. Even coins and platforms solely for educating people about the cryptocurrency field and market are being launched nowadays. When you start investing in the cryptocurrency, there are many risks involved such as the company might fall and you will lose your money, the market value of the coin may fall, ICOs may be a scam, etc.

Here are some ways to reduce the risks and complexities in the cryptocurrency investment:

1. Track record of the company:

The first and foremost thing related to reducing the risks in the investment is selecting the correct company with the highest of track record. Fund management or the Digital Developers Fund released an Ethereum based crypto token DDF token and a platform that helps the users find the chance to participate in highly successful digital assets like cryptocurrencies and domain names. If we check their experience or track record in their respective field, it's vast. For the past years, the fund management has invested in undervalued and fast-growing domain markets in Europe, India, and China. DDF holds almost 1,540 high-value domain names such as,, or different names (such as or and it holds a net asset of $3.3m USD. Similarly, whenever we want to invest in a cryptocurrency, in whichever field the company may be, you have to check their portfolio and track record.

2. The scope of the project:

There are lots of cryptocurrency projects related to different ideas launched into the market every day. In this only 50%, or less is based on a really good idea or having a unique idea and will be successful. If you are investing in the other 50% of the cryptocurrency companies, your money is lost. When you see a project, search the opinions of the project in different cryptocurrency forums if you are a beginner in the field. Then you will get an idea about the quality of the project. For example, the crypto coin
DDF is based on domainnames. Domains are the Internet real estate, with famous strings reaching seven or eight-figure sales. Since its inceptions, DDF has acquired and sold thousands of high-value domain names. Check for the idea of the project, if you find it has the scope to excel, the risk of investment can be reduced.

3. Security and safe keeping of your money:

Different crypto companies provide different strategies for the security to the money of customers. Since they are based on the blockchain technology, they all have a certain security inbuilt in it. But when you invest in a company, you have to search for the company who provides the best of security and safe keeping strategies. Here also we can take DDF as an example. In DDF, the long term held funds are stored in cold wallets based on the Ledger Nano S platform. At no time any wallet contains more than 1m USD or 5% of the fund's net asset value. All exchange and domain registrar accounts are secured with two-factor authentication. They have a perfect setup, constant monitoring, and a dedicated team to adapt to the new security changes occurring in the industry.

4. ICO (Initial Coin offering):

ICO is the most popular funding technique adopted by the cryptocurrency industry, Almost 20 crypto coin companies are launching their ICO every week. By checking the credibility, white paper, different bonus program and features it offers, we can identify whether the project is worth investing into. Here look at the ICO of DDF token. DDF token ICO has started on July 10th and will end on August 10th. The company's goal is to ensure fair and balanced access for small and larger investors, end users, and the overall community. For this reason, and in order not to place an undue burden on the Ethereum network, they have decided not to implement an accelerator or discount function for early investors. And from the total proceeds of the DDF ICO, 15% will be used for operations like software development, human resources, legal, marketing, etc., 15% will be stored in a reserve fund of at least 25% BTC, 25% ETH and max. 50% cash and 70% will go into the portfolio of the company.

Cryptocurrency is a field of very high profitability for the investors. Specifically future will be completely digital in all aspects. Even though it has its own risks, by carefully analyzing the crypto coin before investing in it can help you reap huge profits.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: ico list DDF fund ddf fund ico cryptocurrency investments cryptocurrency investments in ico ico crypto ico invest

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