Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Investing in Cryptocurrencies: The Three Months Rule
The "three-month rule" strategy is not intended for quick enrichment, but rather for stable passive income. It was developed by conservative investors and is more suitable for them.
Tracking the behavior of crypto assets in the investment market, it was noticed that some of them are excellent, some are average, and some are completely fraudulent. For three months of observation, you can see the overall position of the cryptocurrency and predict its further result.
This is a kind of test period, checking the cryptocurrency for viability, during which it is not recommended to make serious bets on the project, it is better to spend this time looking closely and analyzing.
Often investors buy a certain asset based not on its characteristics, but for fear of missing an opportunity at an early stage. This phenomenon is called FOMO. At the same time, the significance of the token is mistakenly overestimated, and the person overpays for it. In this case, the cash investment will pay off later than if the investor made a purchase at a more opportune moment. We are not saying that there will be no profit at all, although this is possible. It's just that the payback will take a longer period if the project is successful.
The reasons why we adhere to the "three-month rule"
- There is a high probability of getting into a scam. Scammers create a hype and keep it for 1-2 months, during which time they manage to hold an ICO and collect bitcoins from investors. As a result, depositors are left with useless and devalued tokens.
- The hype with FOMO passes and after 3 months the project either lives on or dies. It will not be possible to completely avoid risks, but most of the problems of the project during this time can be detected and eliminated.
- You can study all the details of the project. During this time, there are more opportunities to communicate with developers, see what problems they have and how they are being dealt with. You can also have time to look into the white paper and make a balanced decision without the influence of hype.
See also: Everything will be, but not immediately: long-term investments
