Global markets are quite aware of cryptocurrencies and its not just about Bitcoin and Ethereum anymore. Market participants around the world are now speculating on a high level with altcoins, most recently Worldcoin and its iris scans. It’s hard to know which tokens are valuable and which are just useless coins with no utility.
In our research, we have found that asking 3 simple questions can help identify which cryptocurrencies may have underlying value and which do not. Start by asking:
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Is there a funded company behind the cryptocurrency that advances development and accomplishes objectives?
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If you were to obtain the cryptocurrency, what activity would you be able to do that you weren’t able to do before? And how unique is that activity?
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If the cryptocurrency didn’t have a price attached to it, would you still want to buy it and hold it long term? i.e. Would it still be useful without price movements?
These 3 simple questions will help to illuminate cryptocurrencies that may have some level of underlying value. How did your cryptocurrencies hold up to these 3 questions?
