Are you stumped by which cryptocurrency coins and tokens you should invest in? I have various rules I follow and steps I take when evaluating new altcoins, but they all truly boil down to a few key things.
Does the coin have utility value? What problem is it solving that is different from Bitcoin or Ethereum? If you can use Bitcoin or Ethereum in the same way… the coin or token is 9 out of 10 times worthless. I need a coin/token that stands apart (and can stand alone) from these two main ones (BTC and ETH hold the lion’s share of the cryptocurrency market value and solve most issues thus far).
How quickly can I buy and sell the cryptocurrency? This is liquidity. I typically want a minimum of a 9-figure (anything over $99,999,999) market capitalization (total money invested in that crypto), so I can easily get in and out of my crypto holdings.
Is anybody actually using this cryptocurrency? This is where blockchain activity comes in and the use of the Blockchain Activity Matrix at: http://blocktivity.info
As you can see in the image below, the total actual transactions (activity) on each cryptocurrency blockchain below for the past 24 hours:
Which Crypto Should I Buy?
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Thanks again for reading our post and make sure to perform ample due diligence before investing your own hard-earned money in cryptocurrency. This is a very speculative market that is just in the FIRST inning. There is CRAZY money to be made in cryptocurrencies, but as much or more will be lost while this new market grows.
“If you can’t explain it simply, you don’t understand it well enough.” – Albert Einstein
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