How to choose the most promising cryptocurrencies to invest in?

in LeoFinance6 months ago

Cryptocurrencies are assets that use blockchain technology to ensure their security mobility to be transacted on the internet, sent over optical fiber. And this investment option is becoming more relevant, because they have reserve properties of a better value than gold itself because of its portability and feasibility.


It is worth mentioning that gold only performs better than crypts in terms of durability, but if you look at other aspects, digital coins are as good or better than gold.

How to choose a cryptocurrencies to invest?

It is necessary to analyze the cryptocurrency as you analyze a company, for it to be totally reliable it needs to be listed on serious and regulated exchanges, it needs to have transparency, to have decentralization, that is, (decentralization is characterized when a previously absolute power, becomes be shared), and a source code audited by external authorities. It is important to remember that it is not because an asset has gained value that it is a good investment, it may just be a moment where you can earn good money.

Unlike Bitcoin, which is the mother of all altcoins, and they have value because they (BTC) are useful as a form of money (durability, portability, fungibility, scarcity, divisibility and recognition), and their price is determined by the law of supply and demand.

When it comes to cryptocurrencies, watch out for the beautiful stories, because many just hide in fraudulent schemes and people doing only pump and dump, just sell their projects, attract buyers who raise the value of the shares so that the creators of the currency sell their positions.

There is already cryptography that has a company behind the project and then these assets are more likely to have good returns for going through internal processes. It is also important to ask some questions ... what is the use of currency? Does the crypto have application? Is it a serious coin or is it just a joke? What is the real function of money?

For the cryptocurrency to be reliable, it needs to solve something, another important factor is the market capitalization of the cryptocurrency, which is calculated by the price times the volume.

When it comes to investment, be careful!

Thanks for stopping by and reading my post. ❧

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The cryptocurrency needs to resolve some pain point. This is one of the best point in your post. There are so many currencies around, but we don't know what business they are in? Such currencies should be always avoided

Yes, if we don't know what it works for, better avoid ...

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