What makes a cryptocurrency good enough to invest in?

You might be wondering, what attributes contribute to a promising ecoin and an enticing investment opportunity being a cryptocurrency. The response to this question is not always a simple one for all people, nor is it the same. There are a few elements that should be considered, whether you are looking at alt-coins to make an investment, to use as a form of payment, or for some other purpose.

The Coins Demand

The value of an alt-coin is directly linked to the coin demand. The higher the demand, the better the value. Demand may be dependent on different coin characteristics, but in order for a coin to succeed, it must be able to produce demand for itself. The remaining elements on this list are all useful for the life of the coins, but the price of the coin will never go up without demand. You can say a lot about what to expect from the coin by knowing the demand level for the ecoin and where this demand comes from.

Usability

The more accessible an ecoin is as a simple cash substitute, the more non-investors will be interested in the coin. This is not to suggest that investors would not be involved, but to help push up demand, those individuals who are not active cryptocurrency miners and investors constitute a much larger pool. Hardware wallet is very crucial to secure your cryptocurrency.

Ease of Transfer

If the coin can be passed between users easily and rapidly, this coin would be favoured over other ecoins that might be slower or have a more difficult transfer process involved. A related factor is how quickly other types of currency can be converted to the ecoin. There are currently only two cryptocurrencies, Bitcoin and Ethereum, which can be directly converted to cash, and they gain added value through this capacity.

The Ease of Acquisition

Three key methods of obtaining ecoins are through mining; through buying or selling for them and through faucets and other schemes of reward. Mining, the original method of acquiring ecoins, may start out pretty easy to acquire coins, but it gets harder quickly because you have to remember where you are in the coins life cycle. It will be reasonably easy to buy or trade for your alt-coins, as long as the ecoin is on a currency exchange and there are people trying to sell the ecoin. For most crypto-currencies out there today, faucets (reward systems) appear to be open. For any completed task, most faucets pay tiny fractions of ecoins as a reward and should be assessed as to whether the payoff is worth the effort needed to do the tasks.

Community

The culture behind a cryptocurrency can have a considerable effect on its acceptance and growth. The coin would appear to have a long slow growth curve if the ecoin is brought to market by a small group of developers, hoping miners will get on board. On the other hand, this coin could have a much quicker rise to stardom and have more staying power if the alt-coin is distributed by the creators and a large team of devoted followers consisting of investors and consumers.

Life-Cycle

We've all seen alt-coins start at $1, $10, $100, or even $1000 for pennies or even fractions of pennies and rise to be priced at $1, $10, $100, or even $1000 and now we wish we'd been involved with them before. Ecoins start out low and grow in value over time as a general trend and then become relatively steady in a higher range. Some coins, however never take off and others look promising only to crash and burn, going up in value. Knowing where coins live throughout their life cycle will significantly boost the possibilities of making money in the world of cryptocurrencies.

Technology offered

Certain cryptocurrencies are offering smart contracts and other such useful innovations to help make life easier for people. These technologies provide these digital currencies, with a better opportunity to grow and they are worth investing. Moreover, these technologies can hold they key to future developments in the world of cryptocurrency.

Well that is it for now. You now have the merits on which you can judge each cryptocurrency and decide which one you would want to invest it. Good luck guys and invest after researching.