When buying a cryptocurrency there is a harmful practice that should never be done: not being informed and buying blindly.
Cryptocurrencies are not just currencies that are traded like trading cards, but are often part of a much larger project. For example, Ether, the currency of the Ethereum blockchain network, is part of a platform that has objectives that go far beyond the currency itself: development of decentralized applications, creation of tokens, etc...
How to inform yourself when buying cryptocurrencies
So what can you do to inform yourself about cryptocurrency projects? In addition to using the best apps to invest in cryptocurrencies, it is always a good idea to read the the so-called White Papers.
What is a cryptocurrency White Paper
A White Paper is the manifesto written by the person or people who create a cryptocurrency in which it details (ideally and if it is not a scam) everything related to it: technology used, summary of the concept, future applications...
This practice has been carried out since the creation of Bitcoin (here you can find out how much Bitcoin is worth), whose White Paper, of only nine pages, is titled “Bitcoin: A Peer-to-Peer Electronic Cash System” which translated would be “Bitcoin: a person-to-person electronic cash system.”
Although this particular White Paper is full of technicalities (something common in other similar works), it is an excellent starting point before investing money in Bitcoin. Always you have to try to follow the DYOR philosophy or "do your own research" before purchasing a digital currency.
Be that as it may, it is advisable to inform yourself. This way, you can know if you are buying something with enough potential to guarantee its growth in the future or a cryptocurrency that doesn't offer anything new or is outright a scam. In fact, if a project does not have a White Paper, it is a bad sign.
Being informed about the cryptocurrencies you buy is the best weapon you can have against possible losses since, although it is not 100% effective, it is possible to discern if a project is serious or not just taking a look at their manifesto.
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