the bitcoin fever began its upward trend in 2009, the number of cryptocurrencies has not stopped growing: Ethereum, Litecoin, Ripple, NEM, Stratis, Dash, Waves ... Every week there is a new one and it is estimated that there are more of 1,500 different cryptocurrencies, altcoins or alternative coins, in reference to the fact that they are alternatives to Bitcoin.
Aware that they have been one of the most attractive investment products of last year, that it is becoming easier to buy and sell crypto currencies through regulated brokers and that many users are targeting the Initial Coin Offering (ICO), from Patrón Bitcoin, specializing in bitcoin consulting services, wanted to analyze what are the attributes to look for and find in a cryptocurrency to invest in it.
Know where you invest. Just as when entering any fund or buying shares of any company you inquire a little about who it is and what it does, when it comes to investing in cryptocurrencies it is essential to know the attributes that make it different from the rest. Thus, broadly speaking, what differentiates cryptocurrency types is the technology they use on the one hand and their philosophy on the other.
Invest in cryptocurrencies that maintain value. In the case of gold, its value is completely unrelated to its usefulness, beyond being useful for some types of cables and circuits as well as for jewelery, its extraction cost and its maintenance cost. Due to its special properties as a refuge value, people, companies and central banks have been accumulating this good throughout history for the mere fact of keeping value well. In the case of cryptocurrencies, we must think in the same way, since there is no economic sense in any option related to a utility other than the reserve of value.
Invest in the long term. We have seen in recent months how speculation has deflated the market value of many crypto currencies with falls of more than 50% since the beginning of the year. Even so, we believe that Bitcoin will reach up to $ 50,000. That is why we recommend avoiding speculative and short-term investments and betting on currencies that, under normal conditions, will maintain and increase their long-term value for their fundamentals. As buyers continue to be aware of the enormous capacity for revaluation, fewer and fewer holders will be willing to sell their bitcoins, thus reducing the supply even further and, therefore, causing even greater price growth.
A sovereign cryptocurrency. No one forces you to invest in cryptocurrencies, but if you do, you must do so in the one that maintains its value over time, the one that has the best chance of becoming a non-sovereign, universal and non-confiscable reserve of value, and that is the one that is most immutable, that is, the one that is more decentralized, whose focus is security and whose sole objective is to be accumulated to conserve the value of your money. It is also important to take into account who has the least inflationary monetary policy possible.
Run away from fashion and seek safety. Whether it is related to a fraud or massive hacking, there are going to be people who lose money having thought that a cryptocurrency can be a good way to preserve the value of their money by adding supposed innovations that all they can do is make that cryptocurrency most vulnerable to security problems. Bitcoin is the only one whose focus is security and therefore the most likely scenario is that the "dominance index", that is, the percentage of the valuation that Bitcoin assumes within the total of all cryptocurrencies, continues to rise from the vicinity of the 40% current.