Bitcoin is the cryptocurrency that everyone is talking about and for good reason: bitcoin’s value has grown exponentially from $1,016.30 at the start of 2017 to as high as $7,888 in November 2017. The popularity of Bitcoin has prompted the emergence of alternative cryptocurrencies, or altcoins, as different cryptocurrency investment options to bitcoin. Some popular altcoins include Ethereum, Bitcoin Cash, Dash, Litecoin and Monero. There are hundreds of altcoins, some of which are trustworthy and some of which are scams. But, how do you know which one is a good pick? You can select good altcoins by having a plan in place. Here are a few tips for choosing good altcoins:
1. Opt for the Professional Website
A professional website is a basic requirement for any business. If the site looks sketchy and lacks basic security measures, pass it by.
2. Consider the Team and Community
Having a trustworthy management team who understands what they are doing is key choosing a good altcoin. Consider a team with ample experience in digital currencies. Also, consider an altcoin that has a community of investors and miners. A community can nurture the altcoin and enhance their value by helping the altcoin to grow.
3. Look for Use Cases
Make sure the altcoins you’re considering solve a real-world problem. Use cases (also known as case studies) help demonstrate how a product or service that a business offers works and solves a problem for a client. Consider altcoins that demonstrate how they create value and create solutions.
4. Spot the Fakes
Creating a cryptocurrency isn’t difficult as long as you have basic coding skills. So, it’s no surprise that some cryptocurrencies are no good. Here are a few tips for spotting the fakes:
- Scammy website. The last thing you want is to have your information hacked. Stay away from suspicious websites that lack basic security protocols.
- Unknown founders. If the public has no way of verifying the founders’ track records, resumes or work, then consider moving on to the next altcoin.
- Lacks real-world value.Consider why a business or customer would use the digital currency. If there are no use cases and the altcoin lacks real-world value, consider passing it up. If you can’t determine how an altcoin can make a difference, then it may not be useful or legitimate.
Choosing a good altcoin is simple when you know what to consider. By using an altcoin that creates value, solves real-world problems, has use cases, a secure site and is backed by a community and a stellar management, then you can increase your chances of investing in a sustainable digital currency.