Cryptocurrency has become one of the most innovative and controversial topics of this century, and new coins spring up seemingly every day. Everyone has their own opinion about which is the best, and even a simple search engine check can lead you down an endless rabbit hole.
To find the best crypto to invest in, assess these six features that will determine how strong that new cryptocoin you’ve heard all about really is.
1. Security
The number one consideration when dealing with cryptocurrencies is security. This digital currency is kept in a digital wallet or a private key identified via a set of randomized numbers and letters. The security of this private key will allow only you the ability to withdraw from your wallet.
Many blockchain tech projects strive to keep both wallets and transactions completely anonymous. This is often achieved by avoiding a central authority, which is why many cryptocurrencies are considered decentralized.
2. Network Congestion
You’ve likely heard your more experienced crypto trading friends ask each other, “Is EOS better than Ethereum?”
Ethereum is one of the most popular blockchains in the game, while EOS is an underdog. However, just because Ethereum has more users doesn’t mean it reigns supreme.
When you take a close look, you’l see that one of EOS’s greatest strengths is its processing speed in terms of transactions.
Ethereum’s blockchain has reached 90% congestion while averaging a few million transactions per day. EOS, however, boasts a high TPS rating, and its congestion use is only 2%. When EOS reached its record transaction number of 80 million in one day, it did not encounter the same slowdown problems as Ethereum.
3. Cost
It’s no secret that crypto isn’t the cheapest investment. With so many choices, there’s an equally wide range of prices, and researching each coin’s own unique value may take some effort.
Bitcoin has become so ubiquitous that many inexperienced investors will assume it’s the only cryptocurrency, but this is far from the truth. Altcoins are any digital currency alternatives to bitcoin, including Ethereum, LuckBlock, Shiba Inu, and countless others. Many are a much more affordable investment than Bitcoin and bring investors huge returns.
4. Scalability
The number of transactions that are processed or confirmed every second is called scalability. This is variable between different companies and often a topic of hot debate concerning which currency is better, as it’s one of the most critical properties any currency can possess.
A platform must have transaction speeds that are at least comparable with current systems i.e., Paypal or Venmo. Equally important, they must be able to scale these with increased demand and users. The average transaction is now expected to process in about 3 seconds or less to be truly competitive with orthodox electronic payment methods.
5. Usability
Your online trading expert friend may have their favorite obscure coins that only “savvy” users will be able to manage, but a project with a less than intuitive app, be it mobile or desktop, is not a smart choice for new buyers.
If a project hosts its user interface on a website, avoid it until it has a fully tested mobile app, as this will serve as a good litmus test as to when it gained important mainstream acceptance and attention.
6. Demand
While this new form of currency is pushing the boundaries of electronic transactions, it still follows the basic economic rule of supply and demand. If the market isn’t displaying a high enough interest for a particular cryptocurrency, the coin’s value will never increase to make it viable for investing and trading.
Pay attention to a new coin’s media coverage, safety, competition, availability, and potential regulation to gauge where its demand could head.
Find the Right Crypto For You
There’s no doubt that cryptocurrency is here to stay. With more media coverage growing every day and new projects springing up around the world, it might seem like a daunting task to find one that’s worth investing in.
Research with these six properties in mind to find the smartest cryptocurrency to invest your time and money into.
