Cryptocurrencies Investment - Rule # 1 : Look for REAL Value (part 1)

In my first article, I promised that I am going to talk about the rules of investment in cryptocurrencies (CCs for short). The Steemit community encouraged me to do that (Thanks to all who upvoted, commented and followed). So, today, I will talk about the first and most important rule: Make sure that the cryptocurrency you are investing in offers real value.

So, What is REAL Value Anyway?

If you investigate the CCs that are available now, you will find that so many of them do not offer anything special. They do not solve any real problem. They do not satisfy any need that is not already satisfied. They are simply copycats that are riding the hype. Such projects do not offer any real value, and they do not deserve a dime of your investment.

On the other hand, you will find that there are some projects that are very creative. They use the blockchain technology in such a way that would enhance people's lives or solve real life problems. Such projects are good candidates for your portfolio. I am saying "candidates" because they have to meet the rest of the rules before you would decide to invest in them.

Examples # 1: Bitcoin

When Bitcoin was born, there was a real need for a universal electronic currency that is not subject o governmental control, and Bitcoin filled that gap perfectly. That is why the value of Bitcoin keeps increasing. So, Bitcoin meets our first rule. You might think that this is obvious, but for so many, it is not. So many people in the crypto community do not know why does Bitcoin have such a value. The answer should be clear by now: because it satisfied a real need in a great manner.

Example # 2: Peercoin

The success of Bitcoin has encouraged so many people to copy it. One such project is Peercoin. Peercin does not offer anything more than Bitcoin. Naturally, such a coin would only rise with the hype, and its creator will get rich by selling his/her share of coins in the hype. After a while, people will start to understand that it is worthless, and the result would be like this:

This is what happens when you put your money in a CC that does not offer real value. In the recent hype, Peercoin has risen a little bit again, but I am sure, it will go back to near zero value sooner or later.

example # 3: Quark Coin

The same story of Peercoin is repeated here. Therefore, I will only post its price chart:

Rings a bell?

Ok, But Why Not Benefit From The Hype?!

You might think: Ok, I agree with you that such coins do not have real value. But who cares?! If it is rising with the hype, I will get in and when it reaches the top, I will sell and make a lot of money. My answer to that is so simple: this way you are not investing. you are gambling.

I like to call such coins: gamble coins. If you ever make any profit from them, it would be sheer luck. However, Ask anyone who gambles: Which is more often happens to them: winning or losing?!!!

Moreover, if you want to benefit from the hype, why don't you put your money in a good coin. After all, in the time of hypes, all CC go up. But when the hype ends CCs with no real value will fall sharply and stay low for a looong time.

To Be Continued...

This rule is so important. So, I think it deserves a sequel (and maybe more). There are so many CCs I want to talk about. Some of them are coins with real value, but some are gambling coins that I think will leak value by time. I am planning to talk about Either, Dogecoin, Dash, Stratis, Pivex, Ripple, Stellar, Steem, Waves, Zcash, SiaCoin, Ubiq, Monaco, Gnosis, and other CC.

Until then, please, tell me:

• Which CC you would like me to talk about?
• Which CC you beleive offers real value? and why?
• And which one you think is a gamble coin?