After the rise of bitcoin a few years back, a number of other cryptocurrency versions have popped up, each promising to have better or more features than the rest. These days you have bitcoin, litecoin, darkcoin, dogecoin, and many others to choose from. Which one should you invest in?
Trading or investing in cryptocurrency markets has been appealing mostly for the high potential return-on-investment due to the inherent volatility. Of course this also comes with higher risks, which is why it’s important to figure out which market is best to invest in.
One of the biggest factors involved in choosing which cryptocurrency to invest in is its stability. It has been relatively easy to create various versions of altcoins these days, although some haven’t lasted much long due to a small market or weaknesses in the development process itself. Take note that prominent cryptocurrencies such as bitcoin and litecoin have been created by a dedicated and active team of developers mostly through SHA-256 and Scrypt.
Keep in mind though that, despite the large network and it’s time in existence, bitcoin has still been encountering roadblocks here and there. In particular, the block size debate has led to the creation of a hard fork in the system, resulting to two different versions of the software and blockchain. This could expose more weaknesses down the line, forcing some traders to divest from this market recently.
Another important factor to consider is how the developers of the cryptocurrency provide support or interact with the community. A more transparent community engagement fosters stronger trust in the network, which could be the key for stronger prominence and more gains in value.
Lastly, despite most cryptocurrencies being decentralized and its transactions anonymous, it also helps to see a bit of transparency in the industry. Knowing who exactly is accountable for any creations or changes in the system also enhances reliability and investment value.