Before diving into any cryptocurrency investment, conducting comprehensive becomes crucial not just for identifying opportunities, but for understanding the total cost of ownership. It is not only the price charts and the sentiment in the market that should be analyzed, but also all the costs involved in it should be broken down.
Intelligent investors analyze the fees on various exchanges, taxation of various trading strategies and the network costs of their preferred cryptocurrencies. They also study the liquidity level to forecast the possible slippage and include such costs in their expected returns. A trade that looks like it’s going to be a good one might actually end up being a loss once you’ve thought about all the costs involved, if you don’t do a thorough analysis first.
Such a line-by-line examination will assist you not only in deciding what specific cryptocurrencies to purchase, but also in deciding what platforms to trade in, when to trade, and how to organize your purchase. It is the difference between risking and investing strategically.