The 3 Best Ways to Pick a Cryptocurrency That Will Still Be Valuable 5 Years From Now

It’s no secret that the cryptocurrency market is insanely volatile. Even the most seasoned investors have seen projects they had high hopes for suddenly collapse overnight. It can be difficult to determine which currencies have staying power. To make matters worse, many emerging projects are being founded every day. Cryptocurrencies tend to pop up overnight, so it can be difficult to find long-term winners. That being said, you can still find the right coins. You just have to get familiar with the key indicators before making a final decision.

If you’re new to the world of cryptocurrencies, it’s important to understand what you’re investing in. There are three primary factors that will drive the value of a specific currency: The team behind it, its technical framework, and its use case. Let’s take a look at the best ways to pick a cryptocurrency that will still be valuable in the future.

The Team Behind the Currency

Most of the value of a cryptocurrency comes from the people behind it. The team behind a coin is often the first indicator that a currency will succeed. There are a few important things to look for when it comes to the team.

First, you want to make sure they have a proven track record. The best projects are the ones that are backed by a team with years of experience in the blockchain space. Some of the most promising cryptocurrencies are being launched by teams with little to no prior experience. However, there are many exceptions.

Second, you want to look at the qualifications of the members of the team. Many teams have a few people with no technical experience on their teams. That’s okay, but you’d also be wise to see if any of the core team members have extensive blockchain experience.

The Technical Framework of the Currency

Fully-functional blockchains can’t just appear out of thin air. The technical framework of a cryptocurrency defines how the currency will function. The technical framework of a currency is often very similar to another cryptocurrency. This allows for easy interoperability between blockchains. However, it also makes it much easier for a single project to have a huge impact on the market.

This can be especially important in the case of a new asset class like cryptocurrency. Because most of the value of cryptocurrencies is in their technical framework, it’s important to go through the code of any project you’re researching. You want to make sure there aren’t major flaws in the code that could cause the project to fail.

The Use Case of the Currency

The final indicator you should look at is the use case of the currency. Every cryptocurrency should have a clear use case. That use case should be relevant to the blockchain they’re operating on. However, it should also be general enough to be used by non-owners.

A cryptocurrency with a clear use case is more likely to stay in the long term. The use case is often the most overlooked indicator when it comes to picking a cryptocurrency. That’s because it’s often the most obvious. However, it’s also the most important. If you pick the wrong cryptocurrency, then it’s unlikely to be around in 5 years.

Conclusion

If you’re new to the world of cryptocurrency, you can struggle to identify the right projects. Fortunately, there are a few key indicators you can look for to find the right cryptocurrency for you. First, make sure the project is backed by a well-established team. The best projects are the ones backed by a team with years of experience. Second, you want to make sure the team has a proven track record. You also want to make sure they have an extensive amount of blockchain experience. Third, you want to find out what the use case of cryptocurrency is. Every cryptocurrency should have a clear use case. However, it should also be general enough to be used by non-owners.

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