Finding the best coins to invest in can be a difficult task for someone new to cryptocurrency. However, like humans, cryptocurrencies have characteristics that distinguish the good from the bad. Here are the top features to look for when evaluating cryptocurrencies.
Novel Tech
What’s novel about the crypto? Is it a copy of what’s been done 100 times before? Examples of novel crypto and capabilities: Bitcoin Cash for peer-to-peer electronic cash, Ethereum for smart contracting, and Monero for privacy. Other crypto projects are exploring more efficient transactions and methods to secure the network.
Use Case
One essential aspect of cryptocurrencies is how to use them in the same way that a currency would be used to purchase and trade goods and services. Many people overlook this aspect when purchasing cryptocurrency, but having the ability to pick up something valuable with your crypto is actually a pretty appealing prospect.
Stability
The ideal cryptocurrency achieves stability over time as the number of transactions in that currency increases, which is exactly what both of these cryptocurrencies have done. It is a good idea to invest in cryptocurrencies that follow this model.
Demand
This one is relatively simple. Choose a cryptocurrency with high demand potential. We define demand as the cryptocurrency’s being in the news and having the potential to grow over time via word-of-mouth and other means such as media coverage, and availability on exchanges. The idea is that the sooner you invest in a cryptocurrency, the more valuable it will become as more people become aware of it.
Strong Developer Activity?
A strong coin has a lot of developer activity. There is most likely a problem if there is little activity. The best way to evaluate this is to look at the project on GitHub. Everything that was done on the platform, including activity metrics, is made public.
Statistics include the number of viewers, the number of updates received, the total number of stars, and the number of forks created thus far. All of this information can help you determine the activity level of a project.
A thriving community
How many people are interested in the cryptocurrency trend? The greater the size of the community, the more beneficial it should be. Look at the coin’s Twitter handle to see how big the community is. Reddit is another great place to look for crypto-related news or general coin discussions.
The distribution of currency
Open source code governs cryptocurrency distribution and specifies how many coins will be available, to whom, and whether unsold coins will be destroyed or “burned.” Technically, a coin’s scarcity increases its value on the open market.
Usability
The best blockchain technology enables developers to handle all cryptocurrency complexity for users while providing a simple and easy-to-use experience via mobile app, browser extension, or desktop application.
Wrapping up
Which ones would you add to your portfolio now that you know what qualities to look for in a good cryptocurrency? If you haven’t already, visit GoCrypto.NYC and begin your crypto journey. GoCrypto.NYC is an ideal destination for those looking for the best cryptocurrency to invest in or information on how to set up a crypto wallet.
