#SmartInvesting"
10 Rules of Investing in Crypto 7,8
7. Take the Time to Understand the Technology
Put aside time to learn about the underlying tech powering different crypto assets. Knowing how blockchain networks, consensus mechanisms (e.g., proof-of-work vs. proof-of-stake), hashing algorithms, and smart contracts work will give you better insight into a project's prospects.
Learning cryptography basics also helps you better grasp the potential of products like zero-knowledge proofs. Subscribe to legitimate industry publications and blogs independent of the crypto you invest in and stay up-to-date on new technological developments in the space.
8. Pay Attention to Regulations and News
Follow relevant legal cases and regulatory developments, as well as legislative proposals related to crypto, both domestically and abroad. Major regulations can significantly affect prices and adoption. For example, when China banned crypto mining, many miners moved their operations. Stay on top of governance changes enacted by blockchain projects, and the posturing of politicians and their promises. These can substantially alter staking yields, development funding, and other dynamics.