How to pick up a right cryptocurrency?
Bitcoin, not bitcoin, team, centralized or not…
There are 2000+ cryptocurrencies. All of them are competing for your attention. It makes the choice very hard to make.
That’s why I decided to write this article and shed some light on this topic.
You can sort cryptocurrencies into BTC and “not BTC”.
If you decided to start your journey with bitcoin, then congrats you choose the most stable cryptocurrency. BTC it’s the most valuable cryptocurrency in cryptoworld. Was open and public since 1st day. Bitcoin is the original cryptocurrency that solved the problem of digital scarcity over the internet.
If you decided to move with another crypto, then spend some time and read this article I will share with you some steps which you need to do before buying crypto from “not BTC group”
History. How this coin was born
Is it a copy of Bitcoin? Is there were any early investors or devs who got privilege access to this crypto? What terms? What is liquidity?
Who is in charge? Team? What background do they have?
Centralized or Decentralized ?
Company mission or/and vision. Are they called to replace or fix bitcoin or it’s a new bitcoin 2.0? If yes, then run away from them.
What is the technology? Confidential transactions, smart contracts, and cheaper/faster transactions are 3 big selling points for altcoins. Ask yourself what will happen to these altcoins when all these features will be added to bitcoin.
Invest in altcoins which have been around for some time and have proven track record.
Invest into altcoin which has been around for 2 years would be way safer rather than one which has been around for a few weeks.
Keep in mind that a proper cryptocurrency should be designed as a digital asset and not as a consumer product. There were hundreds attempts to replace btc, but none of them have succeeded so far.