Best Cryptocurrency

If you are new to cryptocurrencies you probably have asked yourself what is the best cryptocurrency to invest in?

This is a question that gets asked a lot and in this article I attempt to answer it.

What is the best cryptocurrency to invest in?

This question cannot be answered in so general terms. The answer depends on a number of different factors.

What is your investment timeframe, i.e. for how long do you intend to keep your investment?

What is your risk tolerance? Are you looking for a more conservative investment or are you interested in aggressive growth?

Are you interested in capital growth or cash flow?

As you can see, there are many different aspects to consider when determining the best cryptocurrency for your purpose.

Lets look at them in more detail.

Lets start with risk tolerance.

If you look at the coins and tokens available for investment today, you will notice that there is a vast array of cryptos available. How do they differ?

Generally speaking, they differ in terms of their underlying technology but also in terms of the team behind them and the real world use cases and problems they aim to solve.

Bitcoin itself is the original crypto currency with a strong developers team and a sound technology and purpose.

At the other end of the spectrum you might find coins or tokens that are very cheap but they might be abandoned by the developer.

You might also find coins that simply do not have a real world application.

However, you might find a coin or token that has so far gone unnoticed (and hence is currently undervalued) and buy it a t a low price.

While a well established coin or token might be a safer investment it might not give you the same upside potential as a less well-known or well-developed project.

The latter one, of course, could also turn out to be completely worthless in the end.

In order to find the best cryptocurrency for you, you also want to consider that some coins/tokens are only suitable for long-term capital growth while other offer the opportunity to get regular payouts.

More and more tokens are being developed that actually generate a regular daily, weekly or monthly income for the token holder.

This is in stark contrast to those coins or tokens that simply assume that demand for the specific crypto currency will increase and thereby the price will also rise.

Having a solid business model underpinning the token certainly makes a lot of sense from an investors point of view.

The network that sits between two parties needs to not just function but also generate some kind of return for the investor, i.e. to coin or token holder.

So, there you have it. These are my 5 cents for this topic. This, of course is not financial advice. You need to do your own due diligentce and research to determine which crypto currency is the best cryptocurrency for you.