Topic: Spotting a good cryptocurrency (Read 135 times)
A good currency is easy to define. The main thing that it was stable and its growth was caused by people's trust. For example, the ethereum has existed for a long time and people trust it. He also technically excels the rest.
I wanted to share my Steemit post https://steemit.com/cryptocurrency/@gabocarranza/spotting-a-good-cryptocurrency here:
After spending some time in the crypto-scene I started to
be more analytical before choosing where to invest my money
but before I start I am not telling you what cryptocurrency
you should invest in, I am just providing some information
so you can learn some characteristics you should take
in consideration, if you have a cryptocurrency in mind.
Sweet spots
Blockchain, as we know, is changing a lot of aspects of today's
social-economic model we are based on, improving transaction
rates, timing, and privacy, but when it comes to cryptocurrencies
there are hundreds of different coins out there some of them
with great qualities and some of them made just for fun.
When it comes to choosing where to invest your money there are
certain things I like to have in mind, what sweet spots, does
the cryptocurrency or project I'm interested in have?
Cryptocurrencies are changing today's transactions, but lets
be honest, this is gonna take time, we are not going to see
all famous stores accepting Bitcoin or Ethereum in one or two years
it is going to take time for people to embrace the change, what
takes me to first sweet spot:
Banks and their centralized protocol have been around for years
and people put their trust in banks since it is the main
economic institution, cryptocurrencies trying to make people
leave banks and "be their own bank" will have a really hard time
fulfilling this goal as they are competing against billionaire
institutions that have decades in the business.
Take Ripple for example, is a decentralized model but their
main target is banks! They're not competing against them
they are working together with companies that have billions
of money and have been around for a longer time, so instead
of being against them, Ripple receives their help.
"If you can't beat them, join them"
I'd say this is a sweet spot
if a cryptocurrency is being backed up by already existing
and stable companies is definitely worth trying.
Second Sweet spot
Is it solving a problem? As I said a few sentences ago, there
are tons of coins made just for fun or simply for the fact
of making a coin, now, I am not saying they are worthless, some
of them have managed to stay in the market and increase their
price, take Dogecoin's popularity for example.
BUT if a cryptocurrency or blockchain project is addressing
a solution to a current problem is more likely to succeed,
Ethereum appeared and made it easier for people to create a token
and start their own decentralized project and look ETH had an amazing price increase, Litecoin appeared with a Bitcoin-like scheme but increased transaction speed.
So try to read their whitepaper and see if they had
strong and concrete goals and it will be worth trying.
Marketing, team, and community
This applies not only to cryptocurrencies but for companies
in general, good marketing gives power to any project, and
in the case of cryptocurrencies, you can take a look at DASH
community is one of the biggest and they do the best they can
to continue developing awesome stuff for their cryptocurrency.
I repeat myself, I am not telling you which specific crypto project
you should invest in, and these characteristics I described are not
the only ones you should take into consideration if you know more
things to have in mind before investing let me know!
After spending some time in the crypto-scene I started to
be more analytical before choosing where to invest my money
but before I start I am not telling you what cryptocurrency
you should invest in, I am just providing some information
so you can learn some characteristics you should take
in consideration, if you have a cryptocurrency in mind.
Sweet spots
Blockchain, as we know, is changing a lot of aspects of today's
social-economic model we are based on, improving transaction
rates, timing, and privacy, but when it comes to cryptocurrencies
there are hundreds of different coins out there some of them
with great qualities and some of them made just for fun.
When it comes to choosing where to invest your money there are
certain things I like to have in mind, what sweet spots, does
the cryptocurrency or project I'm interested in have?
Cryptocurrencies are changing today's transactions, but lets
be honest, this is gonna take time, we are not going to see
all famous stores accepting Bitcoin or Ethereum in one or two years
it is going to take time for people to embrace the change, what
takes me to first sweet spot:
Banks and their centralized protocol have been around for years
and people put their trust in banks since it is the main
economic institution, cryptocurrencies trying to make people
leave banks and "be their own bank" will have a really hard time
fulfilling this goal as they are competing against billionaire
institutions that have decades in the business.
Take Ripple for example, is a decentralized model but their
main target is banks! They're not competing against them
they are working together with companies that have billions
of money and have been around for a longer time, so instead
of being against them, Ripple receives their help.
"If you can't beat them, join them"
I'd say this is a sweet spot
if a cryptocurrency is being backed up by already existing
and stable companies is definitely worth trying.
Second Sweet spot
Is it solving a problem? As I said a few sentences ago, there
are tons of coins made just for fun or simply for the fact
of making a coin, now, I am not saying they are worthless, some
of them have managed to stay in the market and increase their
price, take Dogecoin's popularity for example.
BUT if a cryptocurrency or blockchain project is addressing
a solution to a current problem is more likely to succeed,
Ethereum appeared and made it easier for people to create a token
and start their own decentralized project and look ETH had an amazing price increase, Litecoin appeared with a Bitcoin-like scheme but increased transaction speed.
So try to read their whitepaper and see if they had
strong and concrete goals and it will be worth trying.
Marketing, team, and community
This applies not only to cryptocurrencies but for companies
in general, good marketing gives power to any project, and
in the case of cryptocurrencies, you can take a look at DASH
community is one of the biggest and they do the best they can
to continue developing awesome stuff for their cryptocurrency.
I repeat myself, I am not telling you which specific crypto project
you should invest in, and these characteristics I described are not
the only ones you should take into consideration if you know more
things to have in mind before investing let me know!
Jump to: