With so many virtual currencies in existence and more coming up every day, it can be a little overwhelming to choose which cryptocurrency to invest in. There is no need to panic though if you find yourself in this situation, by following these two rules I will list below, you should be able to pick a winner with ease.
The future of the project
It’s easier said than done and it will require you to do a bit of research on your side to really determine if the project has a future. This will require a holistic approach where you first ask yourself if the project is solving a real problem. If it is, then you will ask yourself if the service offered by the coin will still be needed after several years. If the answer is yes and yes, then you will want to ask yourself if the crypto has a real competitor to the solutions it’s offering, and then finally you will want to find out if the developers of the project appear committed to making the project a long-term success.
Most of the times you will realize serious projects that are offering real solutions have very active development teams. These teams keep their communities in the know of any new progress they are making all the time.
So by finding a project that is solving a real problem, has no imminent competing threats and has a team of committed developers, then you have a project with potentially good risk to reward.
How strong is the project’s community?
A great crypto project will have a strong community behind it and it’s a major factor to consider when choosing which cryptocurrency to invest in. It’s the community that gives any token value since if no one is willing to trade on it then its value will be zero. There are quick and easy ways of determining how strong a cryptocurrency community is. By checking the number of followers it has on Twitter, the number of Facebook likes, and the amount of Reddit activity one can have a rough idea of how big a community is.
What other key factors does one have to consider when choosing which cryptocurrency to invest in? lets us know in the comment section below.