The field of cryptocurrency continues to expand as more digital tokens and ecosystems emerge. Although there are thousands of cryptocurrencies in the market, some have proven to be more reliable than others. In this article, we’ll discuss some important factors that make a cryptocurrency more reliable.
This is probably one of the most important factors, if not the most. A good ecosystem allows cross-enterprise workflows and collaborations. For example, Ethereum, the first Bitcoin alternative, has its success attributed to its robust ecosystem. As a decentralized software platform that enables smart contracts and decentralized applications (DApps) to be built on its network.
A cryptocurrency that grows is appealing as it attracts heavy demand from buyers. As a coin’s usability increases, its demand rises. Bitcoin and Litecoin fall into this category, as they have experienced the fastest growth over the last few years.
Cryptocurrency volatility is often one of the major concerns of investors. Therefore, a stable cryptocurrency will always win. This is where stable coins such as USDT come into play. These coins providing the stability that has been elusive in the world of cryptocurrency for many years.
A cryptocurrency that is issued to fund developments of other projects is known to offer more utility than those meant just for speculation. Ethereum (ETH), Monero (XMR), Cardano (ADA), and Polkadot (DOT) are leading the race for the best cryptocurrencies based on utility.
An agile crypto can adapt to an alternative cryptographic standard quickly without making any major infrastructure changes. Litecoin, Ripple, and Ether are some of the most agile cryptocurrencies in the market today.
Probably the most important factor in the success of a cryptocurrency. A transparent crypto project offers information freely to build trust, hence increases project reliability and increases acceptance. Bitcoin, Ethereum, Litecoin, Binance Coin, and all the leading cryptocurrencies have all thrived because of transparency.
A crypto project with proper communication can promote its acceptance. The leading cryptocurrencies, including Bitcoin, have had all the information about them in the public domain, thus assuring investors that their investments are safe.
The first cryptocurrencies that come to mind when the term community is mentioned are Ethereum and Dogecoin. Ethereum has a robust community that works with DApps to facilitate broader integration into numerous economic sectors. Dogecoin, the world’s leading meme coin, has its growth attributed to its robust community.
A reliable cryptocurrency is a good cryptocurrency, as its value will be driven by market demand. Similarly, a reliable cryptocurrency can effectively compete with fiat currencies since it’s more likely to be accepted by the global community as a medium of exchange. In other words, a combination of any of the factors- ecosystem, growth potential, utility, stability, agility, and transparency- can make a reliable cryptocurrency. At PathFund, the team works tirelessly to embody all these qualities through hard work, determination, careful planning, and commitment to our investors.