Cryptocurrency has come a long way in the past few years. The currency was born in 2009 and its value peaked at more than $20 billion by early December 2017. However, it’s still not as popular as some other financial markets. Even so, there are already more than 1,000 virtual currencies available on the market today. These new digital assets are called cryptocurrencies because they operate on blockchain technology, which is an open ledger that records transactions across many computers so that they cannot be counterfeited or tampered with. Cryptocurrencies have grown exponentially over the last few years and this growth shows no sign of slowing down soon. The market is currently saturated with numerous altcoins, with new ones coming online every day. It can be challenging to find the best cryptocurrency for your needs. To help you get started, we’ve highlighted seven key considerations when choosing a cryptocurrency:
What is the target market for your cryptocurrency?
First and foremost, find out what the target market is for your cryptocurrency. This can be anything from just people interested in the technology to the overall market size. For example, a health-based cryptocurrency might target the medical industry. This will help you understand where your target market is coming from, which can give you a better idea of how popular they are and what they would be willing to use your cryptocurrency for. Another important factor when choosing the right market for your cryptocurrency is understanding the benefits of a specific market segment. For example, you might want to target a niche in the gaming industry. However, this might be sub-optimal for cryptocurrency because it makes the market segment less popular overall. This can lead to diminished adoption and thus lower profits. In this case, you would want to choose a more mainstream market segment.
How transparent is the development team?
A public-facing development team is usually a good sign. If you don’t know who is behind the project, there is a high chance you’ll face security issues in the future. For example, if your development team is anonymous, it’s likely that you’ll end up with a fork in the blockchain—meaning that a section of the community will end up with two versions of the blockchain. This can cause a lot of confusion and delay in transactions. The best thing you can do is to find the team members behind the project and get to know them. You can do this by reading their social media profiles, engaging with their community, and meeting the team members in real life. Doing so will help you understand the motives behind the project. It will also help you find out if they are truly interested in making the best cryptocurrency possible.
Is there a clear use case for your cryptocurrency?
When choosing a cryptocurrency, make sure there is a clear use case behind it. If not, it might seem like a great idea, but there is no real motivation behind it. For example, your cryptocurrency might target general financial markets. However, the general market may not be interested in your cryptocurrency. If this is the case, you would want to find a specific market segment that can use your product. You can also use cryptocurrency as a store of value. This means that the currency is more of an investment than a means of exchanging goods and services. You can also combine the use case of a cryptocurrency with a specific industry to find the most optimal use for your cryptocurrency. For example, a cryptocurrency that targets gaming might be ideal for gamers looking to buy in-game items or gifts.
How secure is your cryptocurrency?
The biggest security threat to cryptocurrencies comes from hackers. As such, it’s important to find out how secure your chosen cryptocurrency is. You can do this by reading reviews and comments on social media platforms. Make sure the community members are talking about the security of the project. Alternatively, you can also ask the development team members or the founders of the project. The most secure cryptocurrencies are those that use a tried and tested blockchain technology. These products have been around for a while, which means the security risk is already locked in.
Does your cryptocurrency have a solid blockchain foundation?
Choosing a cryptocurrency with a solid blockchain foundation is essential. A blockchain is, after all, the underlying technology that all cryptocurrencies run on. You can use it to easily track the movement of your cryptocurrency across a network of computers. There are, however, many cryptocurrencies out there that are simply built on top of other blockchains. The danger with this is that the underlying blockchain technology may have had security issues that are yet to be fixed. While these might have worked as blockchain technology in 2009, they could be problematic in 2019.
Is there a cap on the total supply of your cryptocurrency?
Another thing to consider is the total supply of your cryptocurrency. The total supply of a cryptocurrency is the number of coins available in the market. You might want to choose a cryptocurrency that has a capped supply. This means that the amount of coins that will be available in the market is fixed. Why is a capped supply important? Perhaps the most important reason is that it protects investors. A capped supply means that the value of the coin will increase over time as more investors enter the market and trade it. There is no question that the value of a currency will rise over time as more people use it.
Are you looking to acquire or sell your cryptocurrency?
One last factor to consider when choosing the right cryptocurrency is whether you want to acquire it or sell it. When you want to acquire a cryptocurrency, you want to choose a coin with low circulating supply. This means that the majority of the coins in circulation are owned by a few investors. This is a great way to invest in a new asset without the risk of assuming the risk of the coin’s price plummeting. When you want to sell your chosen cryptocurrency, it would be best to choose one with a high circulating supply. This means that many people are already trading it and have done their own research bitcode ai on the project.
