Currently, there are 9,000 cryptocurrencies in circulation. That is quite a crowd considering Bitcoin only launched in 2009.
If this is your first time shopping for cryptocurrency, it can be overwhelming to identify the best coins. However, just like other investments, cryptocurrencies have certain characteristics that differentiate the good from the bad.
Below are five characteristics to consider when shopping for cryptocurrency that will help you identify the best cryptocurrency to invest in.
1. It’s Security Features
It is vitally important to choose a cryptocurrency that keeps your finances secure. The ideal cryptocurrency has built-in security features. This means that apart from two-factor authentication (2FA) and complex passwords, it has security features built into its design to prevent hacking.
While you do not need to know the technical aspects of your cryptocurrency, you need to do your due diligence and ensure that it has security features that protect your finances.
2. It’s Level of Scalability
The scalability of a cryptocurrency refers to the number of transactions it can process or confirm per second. When shopping for cryptocurrency, settle for ones with high scalability. Highly scalable cryptocurrencies can handle a large increase in transactions, workload, or users without undue strain.
3. It’s Decentralized Network
Cryptocurrency gives power to individuals instead of authorities such as governments and banks. One feature that makes bitcoin stand out is that nobody knows the person or persons who created it despite attempts to uncover the many alleged identities of the mysterious creator(s). This is beneficial because the decentralization network keeps the currency monopoly free and the coin’s worth stable and secure.
On the other hand, some cryptocurrencies are not inherently decentralized. This increases the points of weakness in a network since individuals are forced to rely on specific actors.
If you ever happen to identify the persons or organizations behind a cryptocurrency, it would be wise to be wary of it.
4. It’s Level of Demand
When shopping for cryptocurrency, choose one that has a high demand. By high demand, we mean that the cryptocurrency is making news headlines and has the potential to grow through direct messaging, paid promotion, email marketing, and availability on exchanges such as Xi Token.
The earlier you invest in Xi Token, the more valuable it will get, increasing your potential for high returns.
5. It’s Past And Current Price Trends
Before investing in cryptocurrency, you should study its price history. The cryptocurrency market is volatile, so it is normal to see price fluctuations. Study the price over time to better understand the short- and long-term price trends.
Avoid cryptocurrencies with exaggerated highs and sudden drops, as it may indicate a pump-and-dump investment scam. Instead, opt for cryptocurrencies with a gradual price increase, as this shows real growth and high potential.
Open Your Crypto Account with Xi Token, The Trusted Exchange
When shopping for cryptocurrency, consider the security features, scalability, level of demand, type of network, and price trends of the cryptocurrency. By doing so, you will choose the best cryptocurrency to invest in and enjoy phenomenal returns. Trade with Xi Token and make it big in crypto.