In this blog I just wanted to quickly go over cryptocurrency categories to help you choose how you'd like to allocate your portfolio:
Cryptocurrency types:
- Cryptocurrency Stores of Value
The first type of cryptocurrency is Bitcoin. It's a decentralized blockchain cryptocurrency. There are new things in store for it this year like Lightning Network and adoption by wall street and institutional investing.
As a store of value crypto, Bitcoin has is scarce and cannot be replicated. It will hold it's own during during future inflationary periods in fiat. For instance even as the dollar goes down in value Bitcoin will likely raise in value
Here Bitcoin is king.
- Payment coins-
Litecoin, Bitcoin Cash, Dash etc
Peer to peer cash.
Network payment coins are u sed to transfer funds and act as decentralized blockchain currencies.
In this category I'd say Litecoin is your best bet.
- Privacy Coin
These are essentially payment coins similar to Payment coins but are more private
NAV Coin, Monero and often Dash
Here I like Monero since it's tried and true. It also has the largest real world use including many libertarians and is the choice coin on the dark web.
- Platform
Ethereum Neo Cardano Iota EOS OMG
Allow tokens or smart contracts to be build on those platforms similar to apps.
In this space Ethereum is my choice for top player. Just based on it's usage and market cap.
- Utility Tokens
These are technology based cryptos services for purchase.
For instance Ethereum's ERC20 tokens built on the platform..
- Tokenized Securities
Cryptocurrencies backed by a security-- like an asset, commodity or security. An example would be a token that is based on gold, oil or real estate. Another example could be a token that funds a business
- Shit Coins
Scams or just put together for a money grab! Avoid these at all costs!
An example would be Bitconnect. or "Beeeeeeeeeconnnnnneeeect"!
Here Bitconnect is my choice for the coin to avoid at all costs! ;-)
This is not financial advice and always do your own due diligence!