If You Are Investing In Cryptos You Should Know This

Crypto Investor Due Diligence  Guidelines

Before someone starts trading on any altcoins, he/she should understand the main exchanges that are listing his planned altcoins investment and under what legislation they are.

You should try to understand the current government stands on the cryptocurrencies and ICOs. Have they been vocal about it? what has been legalized already?  Under what jurisdiction your planned Exchange is ? USA? Chinese? Korean or others?


All the cryptocurrencies are listed on the exchanges, most of the exchanges are serving a geographic clientele, which enables clients to deposit funds in most cases in their local currency to trade on the coins.

(the image was  taken from Coinmarketcap in the 4/9/2017)



(the picture was  taken from Coinmarketcap in the 4/9/2017)


(the picture was  taken from Coinmarketcap in the 4/9/2017)

Importance Of Understanding The Volume Origines Of Your Holdings

Even thought cryptocurrencies is a decentralized way of sending money that is not controlled by the central bank, the top exchanges are centralized and are bounded to regulations and requirements based on the registration countries which at any time can affect your token holding.

On the 1st of April 2017,  Japan government decided to legalize Bitcoin, which encourage Japanese to invest in Bitcoin. On the 1st of April, Bitcoin was trading at $1075, and by the 1st of September, it was trading on $4776.

On the 3rd of July, South Korea had legalized Bitcoin, when it was legalized Bitcoin was trading at $2571.

Certains coins are more favourable  by  certain exchanges or certains regions.

If we look at Ripple, we can see that most of the demands are coming from Korean exchanges with over 60% dominance.


In cases of local regulations or restriction such as  China ICO Ban , Korea ICO Restriction  , natural disasters (Hurricane, Typhoon, Flood, etc.) or a war in (case such as Korea) it is a possibility that the volume and the prices of the cryptocurrencies will be affected.

Between the 2nd of September, until the 4th of September, we saw the whole market cap of the cryptocurrencies dropping from $179 billion to $139 billion.

This  $40 billion drop was caused partially by the successful Nuclear test in North Korea on the 3rd of  September which was caused an earth quake 6.3 magnitudes had a depth of 23 kilometers and by the  Chinese ICO banned we caused a major selloff on all Chinese blockchain companies.



(Chart is taken from Coinmarketcap)


When trading in cryptocurrencies, it is important to be aware of the above factors that can affect heavily your crypto portfolio, even though we tend to believe that cryptocurrencies are decentralized, it is affected by fundamental event that can shift completely the market direction.

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