cryptocurrencies
26
Mar

How to identify cryptocurrency that will take off in future?

Few investors had the foresight to see the growth of bitcoin. They were the ones who bought bitcoin in its initial days and held to it are now extremely wealthy. Those who have made millions-billions are Barry Silbert (Digital Currency Group), Blythe Masters (Digital Asset Holding), Dan Morehead (Pantera Capital), Tyler and Cameron Winklevoss (Gemini) and Michael Novogratz to name a few.

Among all the crypto currency Bitcoin has the highest market capitalization in the world at present. And its tremendous performance in last few years has attracted many casual investors who have invested in the market at right time and held on to it are playing in millions today.

Cashing on the growing popularity and exponential rate of return of bitcoin many other currencies issuing firms have jumped in the crypto currency vagabond by issuing Initial Coin Offer (ICO). With nearly 800+ different cryptocurrencies in the market, it becomes hard to identify which one will take off in the future and which one will sink. Here are some attributes one should look for:

While scanning for the next crypto currency that will take off or become next superstar is the price of the token, which is a crucial factor. Most of the average investors do not have a huge amount to invest in crypto currency hence low-priced currency is the best bet. As it has a space to grow further. Just imagine your potential investment of few thousand dollars at today’s price can buy only a fraction of bitcoin or over 25 litecoins or few thousand coins of some other currency, which are priced below a dollar each. One should diversify into different currencies to reduce the risk factor.

Ripple has seen good growth in last year but has declined in this year somewhat. It has a strong potential of being adopted for, other than speculation. It is because the underlying technology that it provides is a good global financial settlement solution with central banks and other financial institutions across geographies. Important thing is that it has reputed banks and financial institutions as its partners. Ripple acts as both digital payment network for financial transactions and crypto currency.

While in your search for crypto currencies you should identify the one which has edge over others than it will make for a good investment. Since the crypto currency has an edge it is more likely to be adopted widely.

Most of the crypto currencies have fixed the number of coins they will issue over a period of time. Once that number is reached by mining or whichever way no new tokens will be produced, this increases the price if the interest of investor still remains (economies of demand and supply) in it. Do check for the crypto currency that you wish to invest for the total supply and present circulation before you invest. 20 percent of total bitcoins remain to be mined in present condition.

Day to day trading information of crypto currencies is easily available on many websites. The currency which is gradually increasing in price and volume of trades is the one which will keep the momentum going forward. Though there is no guarantee that the momentum will be maintained, still it is one of the ways for investors to judge that currency. In other words that crypto currency has more investor interest in present time.

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