Qualities of a Good Cryptocurrency.// 10% payout to tron-fan-club
Research has shown that there are thousands of cryptocurrency out there in circulation looking for investors and you will agree with me that sometimes it a very difficult to identify a viable one especially when you're new to the game. However there are some yardstick and measure that one can use to identify a very good cryptocurrency amidst the teeming number of cryptocurrency we have out there.
It is no news that a lot of people have been scammed of their hard earned money but you know it could have been avoided if they understood certain things. There are features and qualities investors should look at before investing in a cryptocurrency. Join me as I share some of these features.
Security is a non negotiable features that every good cryptocurrency must possess. There must be an inbuilt system of of safety that makes it difficult for it to be hacked or manipulated by fraudsters. Any cryptocurrency without this feature won't stand the test of time and as an investor,you should run away from such cryptocurrency if you don't want to loose your hard earned money. One should also take note of the individual behind the project and the white paper I helps reduce the risk of being scammed too.
A cryptocurrency without a healthy supply of coin is not viable and shouldn't be invested in. If there is too much circulation of that coin in the market,it means the coin lacks value or will loose value over time. Bitcoin has been able to maintain a very good supply of their coin such that it has a definate number of coin in circulation and no other can be added to it as it stands. Other new cryptocurrency are trying to pattern their project in that manner and some of them have subscribe to coin burning so that their coin can hold tangible value.
Stability is another feature of a good coin. Although it doesn't come cheap. Many of the coin we consider to be stable today such as Bitcoin,ether and the likes gained their stability over time and it also as a result of a general acceptance from investors. The more it is being used or invested in,the more stable it becomes. One has to be very careful of cryptocurrency that lack stability or not tied to a very good asset.
The is one of the crux of this subject. Decentralization is one of the major feature of the blockchain system and we know that every valid cryptocurrency is build on a blockchain. By decentralization,I mean the holding of power by many instead of a single central authority.If a cryptocurrency breaks this rules then it's not worth investing in because it can be manipulated by the central authority who seem to hold the power.
Demand is another awesome feature you should take note of. Anything in hight demand shows there is level of value attached to it and vice versal. When you observe that a Cryptocurrency is not being invested in by people inspite of how much news about it has circulated then you need to be very careful. It only shows there something fishy about it. It might just be the next scam which wise investors have already spotted. There should be healthy demand for every good crypto project. Bitcoin is a very good example.
Scalability talks about the possible number of transaction that can be process within a given period of time and in this case it has to be in seconds for it to be considered a good coin of project,at most 3 seconds. When there is unnecessary delay in processing bulky transaction then it's not good enough. Not only should the coin have the ability to process multiple transaction,it should also possess speed in processing them.
This is a very important feature you should look out for before buying or investing in any cryptocurrency. What can that Cryptocurrency achieve? Why was it built? And what problem has it come to solve in the blockchain world or crypto space ? These are question you should ask. If these questions begging for answers refuse to get answers then that coin is not worth going for. A good cryptocurrency must have a use case.
Now that you have a fundamental knowledge of what makes a good coin,I hope you will use it in accessing any cryptocurrency that catches your attention. I also need to mention at this point that you need to also explore more of these qualities before finally investing. Thanks for your time.
Best Regards:
@lhorgic♥️
Use case is very important in Crypto, before I invest on any crypto I made sure I checked the use case.
You've highlighted some great points, thank you for sharing with us.
Wao! Am glad you can relate with the point mentioned. Use Case is indeed key when looking out for a cryptocurrency to invest in. Thank for the review.
interesting discussion I just read it Thanks for sharing here
Am glad you found what I shared interesting. Thanks so much for the warm remark
Thank you for sharing and of course this is very good.
a stimulating debate I just finished reading it. Thank you for contributing to this discussion.
I have gone through all of your points and all the points are really important for any cryptocurrency to be best and accepted.
Thank you so much for engaging with my post. Am glad you can relate with everything stated there.