)
In the crypto sphere there are always flavour of the month currencies to spend your bitcoin on. But what is hot and rising one minute can quickly end in tears for traders or investors. A sharp selloff and a drop in price can quickly send shocks of panic in the market. Your dreams of cashing out big on your favourite crypto token can rapidly become nightmares.

How to Choose Crypto Currencies to Invest in?

To increase your chances of becoming rich from being an early investor in crypto currencies you should invest in coins that have several positive aspects about them. The more of the boxes your crypto currency ticks the better it is.
The typical aspects of a coin that make a good investment are:

Development Team

Crypto currencies require a team of active developers behind it successful. They should working towards achieving the goals they have set out in their roadmap. New and upcoming developments in a crypto currency often leads to an increase in price. You may be able to profit by buying early the crypto currency early before the rest of the community at large hears about it.
In order to identify if a crypto currency is worth investing in you may want to see if any third party developers or companies are developing on the chain. If third parties are willing to spend their time and money on developing a project on the blockchain it could be a sign of a bright future for the token.

Strong Community

Any coin you invest your money in should have a loyal following and a strong community behind it. A currency with a weak community could be subject to pump and dumps. A strong community will back its coin through good times and bad. They know they are sitting on a winner and don’t care about price drops.
Is the community friendly, willing to help out newbies and is it growing etc?

Longevity

How long has the coin been around?
I prefer to invest in coins that have been on the scene for at least a year. They will have a trading history allowing you to see when you should be accumulating coins to trade or invest in. The crypto token will have stood the test of time and had its technology tested. It will also help to cut out any flight by night scam coins that might be created to rid you of your bitcoin.

Solutions and Use Cases

For a crypto currency to become successful it must actually do something and solve a problem.

What does your crypto currency have a solution for?

A crypto currency has a solution to a problem will be useful and valuable in people’s lives. Some coins are focused on the problem of privacy for and are used by people to make private transactions. These coins obviously have use cases and solve a problem for people.

Coin Supply

I am a fan of crypto currencies with a low and limited supply of coins. Having a capped maximum supply of tokens makes the crypto currency deflationary as opposed to inflationary. Additionally, investing in a coin with a low supply can lead to big price increases when there is increased demand in the marketplace.