A Look At Crypto Space

COIN INVESTING AND CLASSIFICATION Please note this not financial advice and this just my personal methodology of dealing with the vast cryptocurrency market place.
1. Bitcoin the first one ever , the father of them all,the Adam of the crypto family tree.The way most people got started and has the most esteamed reputation as a store of monetary value also serves to measure the Worth of most alts and primarily why it is worth the most as of now. Keeping that in mind an investor should hold some to maintain the worth of his or her portfolio that and use a trusted stable coin.
2. Ethereum)if Bitcoin is the father of the alts then Ethereum is most definitely the mother of the alts , ethereum has birthed countless tokens based off it's blockchain with many different uses some even acting as a placeholder for a project until they can create their own blockchain, so holding ethereum is also very important especially if you wish to buy certain alt projects who are only willing to accept ethereum as form of payment so just like in real life certain projects favor their mother over good old dad and vice versa I'm sure we each had a favorite parent growing up or one we related to more so this only makes sense.
3. Now that I mentioned the top two it brings us to our first type of alt coin class mother coins, so nick named because of their tendencies to give birth to a wide variety of tokens that have many different uses , examples of this coin would be Ethereum ,EOS ,Tron, Neo , and many more , it's important to note when selecting a coin of this type to remember ease of use , speed of network transactions ,and number of dapps and what platform you feel at home with when using , personally I recommend on having a top ten of these and investing in the top five you choose.
4.Our next class is native tokens or the offspring of a particular blockchain ,so starting with Ethereum Erc20s for the example or ethereum’s kids .The things to think about is do they have longevity on the market or a short life span running out of popularity and the need to use them , so to determine this I run them past a 3 step test , 1 supply , 2 demand , 3 use case.Step one is pretty simple you don't want a number of Tokens that isn't too high or to low a happy medium 21 million to 800 million this ensures a balance in supply and demand so the price doesn't risk being under or overvalued depending on the project , Step 2 is harder because you have to put on your marketing hat and decide will be people want to buy into this project is it desirable and attractive for consumers? Step three isn't much easier but is to a degree you have to decide if the project is useful and user friendly will people need to use it or if it will render them a valuable service determining this third one is the most important factor though. These rules can be applied to an other native tokens to a particular blockchain not just erc20s.
5. Now we come to our fifth alt class the adults are one of a kind blockchains that don't support other tokens or just a small handful their product was solely developed to solve a problem in the real world or on the block chain these products can be very technical in nature and some are only for developers because they are used in code writing or for creating special types of dapps , but some are very straight forward it's a real mixed bag of different use cases these are important to study deeply so you make sure you understand them and how they compare to other projects. You need to find one that stands out to you for overall being extremely versatile or better at something than any other project buy it and hold on to it more likely than not it will go up into value , also always test every project you get interested in if it meets your expectations (make sure they can do what they advertise) if not sell and move on. It's important to be realistic about this and make sure the certain alt delivers what it was meant to be.
6. Tether ,usdt ,Dai and many others)Stable coins/pouch alts as I like to call them these are important to help preserve the Fiat value of your overall holdings when you aren't actively buying or selling or if you don't wish to hold cryptocurrency long term regardless these are great to protect yourself from price fluctuation and encourage institutions to invest giving them way to test cryptocurrency at their own pace until they have the confidence to buy better digital assets.
7. We have tokenized assets / or straw men alts these Alts represent a real world product like gold ,silver ,land or something else physical . These can be extremely valuable or not very much depending on the cost of the real world asset attached to them. These are generally a very good and somewhat stable option if they come from a reliable company and the assets can be inspected or audited from time to time.
8. Utility blockchains or a technology that has been created to assist other blockchain projects examples of these would be Quant, XYO network, and Chain Link.These are important because they overcome certain block chain's limitations and make them more useful.
9. The last cryptocurrency type I will bring up is the black sheep of the cryptocurrency community and Important to pay attention to and discourage these because it is bad for the free market and cryptocurrency.Im talking about extremely centralized blockchains that are completely controlled by one group and have no freedom of overall usage ,JPM coin , cryptocurrency exchange tokens that are used in unfair ways , and any cryptocurrency that attempts to monetize any basic service that is generally free or should not be under the control of one company or institution , examples being , transfer of funds , medical info , biometric info , DNA , there is even one Crypto that attempts to sell human stem cells a practice that could lead to unethical behavior SCC ) , selling human body parts is a line commerce should not cross so we as consumers and responsible people should know and do our best to stop these kinds of things from corrupting our free market simply by exposing these things and shunning them,and doing our best to do away with them. This article has become longer than I would like it so I'll write a part 2 (Trading strategies )until then thank you for reading my article and Happy Crypto Space Traveling!