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How can you know if a cryptocurrency is good for investing?


How can you know if a cryptocurrency is good for investing?

What problems is it trying to solve?

A worthwhile crypto project must solve real-world problems. Major problems that face blockchain platforms such as Ethereum and Bitcoin Are Scalability problems, Transaction processing speed problems, Transaction processing output, Interoperability problems, Security problems, and cross-platform compatibility. These are common major problems that face blockchains.

If a crypto project is not solving those problems to the extent that brings value to users, then such a project is not valuable and I don’t consider it as good for investing, although you can speculate by trading daily but be careful and trade for your own risk because cryptocurrencies are higher volatile.

There are many cryptocurrencies out there, but most are just there with no value, when you dive into it and start to trade and invest be careful because you will end up losing your money. Do intensive research by reading the company’s vision and mission, looking at their whitepaper, looking at their partner, and looking at their founders to see if they have knowledge, skills experience in the industry.

All successful companies and entrepreneurs solve problems that face societies in different sectors of the economy, social and political.

Don’t forget, if a cryptocurrency is not solving any real-world problem, then such a crypto project is not good for investing, and if you invest there is a higher chance that you will not succeed.

 “Risk comes from not knowing what you are doing. Never invest in a business you cannot understand.” 

                                                                        By Warren Buffet 


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