I came across a video on twitter by @bk Brian Kelly where he stated some agreeable keys in building a crypto currency portfolio
I totally agree with him and that's why am Sharing this with you to help you make the right decision in building Your Own portfolio.
Why should you care? It was actually predicted that there are going to be emergent of numerous cryptocurrencies after bitcoin. and that's exactly what is Happening now. Recently there are over thousands different cryptocurrencies in the crypto space and with new ones being added daily.
The big question is, how do I find the right one to add to my portfolio?
Brian Kelly mentioned the three keys that are paramount in making the right choices, these includes:
(1) Good technology: He mentioned that there are tons of shitcoins out there that's just copycat of bitcoin. while most of them are nothing but scam and ponzi scheme that are bound to collapse some day. Like the case of onecoin. You have to conduct a thoroughly research on any coin you wish to add to your portifolio to fully understand the technology behind its operation. Don't draw your conclusion from what your friends tells you.
(2) Real world use: he advices to only make use of the ones that has real world use. Possible one people are going to use in a relatively long term and can stand test of time. For example the real use case for bitcoin and its fork is for value transfer. While the main representation of distributed computing is Ethereum and its smart contracts. It has ability to run small pieces of software on all computers in the network.
(3) Strong community: cryptocurrencies is all about the community. It got to have a strong community and large user base that's supporting it. So make sure you chooses the one has massive adoption.
In further breaking down with the portifolio he claims that meet up with these three keys, he presented his own chart.
Which other cryptocurrency do you think should have been on the chart and which one do you think should not be there? Please drop your comments
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