So, you’ve decided that it’s time to start utlising an alternative currency, whether it be for investment, or simply for day-to-day payments.
It may seem daunting at first. After all, cryptocurrencies are in constant flux — some might fail, and some might prevail. So, what you should be looking out for when choosing one to invest in?
Longevity is key
‘Decentralize Today’ is a blog that brings together experts on tech and digital currency, and although their focus lies in blockchain-type currencies like Bitcoin, it can be a handy insight into the industry as a whole.
An article published at the height of Bitcoin’s popularity, titled ‘An Investor’s Guide To Cryptocurrencies: Picking The Winners & Avoiding The Losers’, states that the rule of longevity, which is crucial in more common types of investments, is significant when investing in cryptocurrency as well.
Longevity means taking a long perspective in your investments, and as the article notes, not only in the product itself but those producing it as well. Your investment should be something which will be used long into the future. You should also take care to note any competitors and whether they have the potential to outperform your investment.
Finally, there has to be a commitment from the developers that constantly improve on the product or service you’ve invested in.
To put it in short, as the article suggests, your cryptocurrency of choice should:
- Have a current or growing need for it
- Have few or insignificant threats or competition
- Have a team that puts great effort into developing it
The article thereon outlines several options of cryptocurrency to choose from, which are all based on the blockchain technology. Our suggestion is to take a look at Dag-chain instead.
Why choose a Dag-chain cryptocurrency?
‘Dag-chain vs blockchain cryptocurrencies’ is a debate that is only now getting momentum and with good reason – the former aims to improve on the latter, after all. If you take a look at the three characteristics outlined beforehand, the Dag-chain technology can easily be submitted to the rule of longevity.
- There is a need for it – fast and easy transactions are always in demand and Dag-chain is built with exactly these qualities in mind.
- Threats are low – DagCoin is currently the primary cryptocurrency based on the new technology and unique among its direct competitors.
- Development is ongoing – behind the Dag-chain technology is a team of committed developers and source code is open to outside talent as well.
In summary, when choosing your cryptocurrency, it can help to see it as picking a worthy investment – longevity means a certain kind of stability and can lead to great profit in the end.