How Do You Decide What Cryptocurrency to Invest In?

This topic requires a complex answer that touches on different aspects of the cryptocurrency market. However, I’ll go the short route and give you some tips:

If you want to find cryptocurrencies that are worth your money, check for fundamental points and ask yourself different questions, like:

– How old is the currency? The older, the better (Bitcoin, Litecoin, Ethereum should be good choices from this perspective).

– What problems does the cryptocurrency intend to solve? Will these problems still be relevant in the long-term future? For example, Bitcoin is an alternative currency that contrasts with fiat money. Litecoin wants to solve certain problems of Bitcoin’s blockchain. Ethereum wants to offer secure conditions for doing business by applying smart contracts.

– Who are the people behind that cryptocurrency? Do they have experience in the crypto/blockchain world? Is their reputation good? Just check the cryptocurrency’s site and have a look at their team.

– Does the cryptocurrency have a website? Check its quality/design/customer support/how the project is promoted.

– Read about the cryptocurrencies on Reddit/Quora and crypto forums. Maybe you are not too technical, but you can find hints whether the blockchain system behind a certain cryptocoin is reliable or not.

– Did the team behind the cryptocurrency partner with reputable companies like banks? (for example, Ripple has collaborations with dozens of banks, including JPMorgan Chase). Is the cryptocurrency considered legitimate or used by giant companies?

– Check the news about cryptocurrencies and the reactions – whether positive or negative. Make sure to avoid all scams.

– Does the cryptocurrency have potential in the future? Are companies ready to create an infrastructure for it?

You should also give attention to the technical analysis aspect. Check the price during the last days, months, years. Check the market cap and the recent trends. Sites like CoinMarketCap should help you with this.

You can add your own research methods, but the direction should be something like this.

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