How to choose a token to invest

in mulierum •  3 years ago  (edited)

Now that you know what a token is, how do you choose which one to invest in? Here are three factors to consider when making your decision:

  1. The team behind the token

It’s important to do your research on the team behind the token. Are they experienced in the industry they’re working in? Do they have a solid track record? What are their goals for the project?

  1. The purpose of the token

What is the token’s purpose? Is it used to power the product or service? Or is it simply used as a means of exchange?

  1. The size and growth potential of the market

What is the size and how fast is it growing? What are its future growth prospects? You should aim to invest in an industry where at least one of these two criteria can be applied:

Is it a rapidly expanding industry that’s expected to grow by more than 25% at least for the coming three years?

Is it a young industry that is experiencing fast growth, i.e. it has not yet reached maturity? An example would be the smartphone app market which exploded in size during the last decade.

Of course, keep in mind that these are just guidelines - you should always do your own research before making any investment decisions.

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