7 Tips for Choosing a Promising Cryptocurrency
Today, more and more people are becoming interested in cryptocurrencies and trying to understand how to make money quickly and safely. After all, there are as many opinions as there are projects on the market.
Below, we discuss some tips that could help you avoid ‘shitcoins’ and opt for promising cryptocurrencies instead. How to choose the most reliable and promising cryptocurrency for investment? What are these pointers and how can you afford not to invest in the wrong cryptocurrencies?
1. Cryptocurrency Has Existed For At Least 3 Years
If you are a novice investor, it is best to choose a cryptocurrency that has existed in the market for a long time — at least 3 years. Long-lived projects guarantee financial stability and protect against sharp rate hikes.
2. Developed Infrastructure
The presence of related products in a crypto project indicates that the project is developing, has long-term prospects and plans, and further reinforces the value of its coins. A cryptocurrency that has an ecosystem offers more opportunities for investment and use. Not every project will last long without constant innovation.
3. Green Technology For Mining Coins
If you read the news regularly, you know that more and more countries are banning mining. And such a ban is quite justified. Scientists at Cambridge University have calculated that mining consumes 21.36 terawatt-hours per year. That’s more than the entire population of Argentina consumes in a year. In addition, mining requires expensive equipment, because of which there is still a shortage of computer graphics cards on the market. Also important is the special technical knowledge required to set up this very equipment.
Elon Musk refused to accept bitcoins as payment for Tesla electric cars. Today, more and more governments and companies are following Musk’s example. This is why it is worth choosing a company that offers an alternative way to mine the coins, as otherwise the prospects and opportunities of the crypto project are very limited.
4. The Founders Of The Project Are Well Known
The official website of the project should have information about the people who founded it. If you type the name into Google and find nothing, cryptocurrency is a scam or a pyramid scheme. Check all the information for accuracy.
5. Secure Coin Storage
Blockchain offers the highest degree of security. But vulnerabilities can be found everywhere. Crypto projects offers several types of wallets. They differ not only in functionality but also in their level of security. For example, “hot” and “warm” wallets, as they are called, require an Internet connection. In return, they allow you to conduct transactions quickly. It is more convenient to use such a wallet.
To improve security, the project should offer two-factor or biometric authentication. The safest wallets are “cold”, that is, separate devices without a direct connection to the network.
6. Opportunities To Use Cryptocurrency
Those crypto projects that have implemented technology in advance for ubiquitous use will win.
7. Availability Of Coin Combustion Systems
You probably know the principles of inflation: the more currency in circulation, the cheaper it becomes. Many projects regularly burn coins. Burning takes them out of circulation. This avoids issuance.
Choosing a cryptocurrency for investment is not a simple matter. The main thing is to assess all risks and pay attention to security guarantees