The cryptocurrency market is flooded with thousands of coins. Whereas a number of these coins are smart for investors, so many other coins are worthless. The purpose of putting this on ink piece is to spotlight some of the key factors that crypto investors ought to take into account before creating their investment.
(i) Means of exchange: This money is used for legitimate trading. Something generally accepted as a medium of exchange for goods and services. Usually, when the initial offer of coins ends, they are listed on major stock exchanges where it will trade, and also on the market cap of the coin or the index of the coin. Any coin that is incapable of use as a means of exchange should be avoided.
(ii) Coin swap: Just like the fiat currency of the dollar against the euro or the pound sterling, etc., Any currency that cannot be exchanged (swap) between existing currencies such as Bitcoin, Ethereum, etc. is not money and therefore should be avoided.
(iii) Utility: What is the meaning of money if it cannot be useful for buying goods and services? Today, the telecommunications and e-commerce industry’s net worths are growing very rapidly. Any coins that are accepted in these two industries will rise in value in a short period of time.
(iv) Minability: Mining is a very important factor when testing a coin or considering its viability. The blockchain of any genuine coin will permit the usage of a computer in cold weather where the coins are mined.
These are some of the important factors that influence the decision of prudent crypto investors.