Main criteria for choosing a cryptocurrency: what parameters to focus on when buying

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The digital asset market does not forgive mistakes and naive bets. Just hype around a project is not a guarantee of success. Behind each coin lies a complex system of indicators, internal regularities, and potential risks.

To prevent an investment portfolio from turning into a random collection of tokens, a well-thought-out strategy is necessary. The key to smart investing is an objective analysis of parameters that determine stability, growth potential, and actual value. Understanding and applying criteria for choosing a cryptocurrency is the foundation of successful investment activity in the world of digital assets.

Technological Base

The foundation of any digital coin is its technology. Consensus algorithm, scalability, transaction speed, decentralization, and blockchain architecture all affect the project’s stability and development prospects.

Ethereum introduced smart contracts and became a standard. Solana focused on speed, providing 65,000 transactions per second. Monero concentrated on anonymity. The key point is that criteria for choosing a cryptocurrency include technical implementation as a basis for analyzing the project’s viability.

Volatility and Risk

Price fluctuation reflects volatility, and therefore, investment risk. Bitcoin dropped from $69,000 to $16,000 within a year. Avalanche grew by 300% in three months. High dynamics are not an advantage but a signal for strategic planning.

In this context, criteria for choosing a cryptocurrency require assessing the price movement range, correlation with external factors, and capitalization stability. The higher the volatility, the more cautious the strategy should be. An unstable asset requires constant monitoring.

Capitalization and Liquidity

The current trading volume and overall market capitalization demonstrate the asset’s demand. Liquid coins are easy to buy and sell without spread losses. By 2025, Ethereum’s capitalization exceeded $450 billion, while Dogecoin, despite its recognition, stalled at $17 billion.

An analysis of cryptocurrencies for investment includes comparing volumes on key exchanges, order book depth, and transaction execution speed. The higher the indicators, the more stable the asset in the portfolio.

Legislation and Regulation

Regulation changes the rules of the game. Licensing of crypto platforms in the EU, taxation in the US, bans in China—all of this affects the coin’s fate.

Criteria for choosing a cryptocurrency must take into account the legal environment surrounding the asset. Ripple lost $15 billion in capitalization due to a legal battle with the SEC. Monero disappeared from several exchanges due to a conflict with the European AML5 law.

Community and Support

An active and engaged community increases the chances of long-term project development. Developer, enthusiast, and investor support accelerates the implementation of updates, infrastructure development, and recognition growth.

For example, Cardano has built an active network of supporters, allowing it to compete with more well-known platforms. Social media activity, GitHub commit frequency, and participation in discussions form the criteria for choosing a cryptocurrency in terms of ecosystem dynamics.

Accessibility and Listing: Where to Look for Listings

Binance, Coinbase, Kraken, OKX—having an asset on major platforms guarantees accessibility. This, in turn, ensures liquidity and legal transparency. Projects without listings are either in the launch stage or under sanction risk.

Choosing a cryptocurrency without evaluating the listing level is a mistake that leads to a loss of liquidity. Coins available only on no-name platforms often lose value when significant withdrawals are made.

Project Goal and Mission: Hype or Real Use Case

Every project declares a goal. But only a few create a product. Chainlink integrated oracles into DeFi. Filecoin built a decentralized storage. VeChain applied blockchain in logistics.

Criteria for choosing a cryptocurrency always include analyzing the project’s goal and the presence of a working product. A website and whitepaper cannot replace a business model implemented in real business.

World Situation: Reactivity to News

Digital assets instantly react to geopolitics, economic sanctions, Fed decisions, hacker attacks, and even tweets. After Elon Musk’s announcement of accepting Bitcoin for Tesla, the price rose by 12% in a day. The collapse of Silicon Valley bank led to capital flight into stablecoins.

The news factor is essential in cryptocurrency analysis for investment. Constant monitoring of political statements, regulatory initiatives, and economic reports is required, especially when creating short-term strategies.

Growth Potential: Not in the Past, but in the Future

Past coin growth is not a guarantee of the future. However, a combination of factors—integration into B2B, participation of major funds, roadmap presence, and stage implementation—determine potential.

Polygon implements solutions for scaling Ethereum and partners with Nike, Reddit, Starbucks. This is not just a price but a growing interest from the corporate sector. Such analysis significantly increases the accuracy of selection.

Criteria for Choosing a Cryptocurrency to Rely On: Summary

Choosing a digital asset is always about analytics, not gambling. A reliable crypto portfolio is formed based on a clear evaluation system that considers both project technical characteristics and market realities.

To create a sustainable crypto portfolio, the following evaluation system is used:

Technology: algorithm, scalability, smart contracts.
Capitalization: total value, daily trading volume.
Liquidity: order execution speed, order book depth.
Regulation: legal status, blocking risks.
Volatility: fluctuation level, stability.
Listing: availability on top exchanges.
Community: developer and user activity.
Goal: practical application, product availability.
Information Background: sensitivity to news.
Support: customer service, update frequency.

These criteria for choosing a cryptocurrency allow for forming an objective picture of the asset and reducing investment errors.

Examples of Promising Coins in 2025

Arbitrum expands the functionality of Layer-2 solutions. Immutable X offers infrastructure for NFTs without fees. Render Token provides distributed graphic power for metaverses.

Each of them is an example of hitting key criteria for choosing a cryptocurrency: in-demand technology, active community, real product, listing on top exchanges, and implementation prospects.

Remember the Criteria for Choosing a Cryptocurrency to Find the Best Solution

Choosing a cryptocurrency is a systematic process based on strict criteria. Every aspect matters—from technology and project mission to regulatory level and news reaction. Errors in assessment can be costly. Each digital asset must undergo scrutiny for compliance with key parameters. Only with this approach can a truly strong and balanced crypto portfolio be formed. Here, each token is an investment, not a bet in a random game. Therefore, informed criteria for choosing a cryptocurrency are the foundation of a sound strategy in the world of digital assets.

What is a Cryptocurrency? Explained in Simple Terms

What is cryptocurrency in simple terms? Simply put, it is money on the internet, but without physical coins or notes. It takes place digitally and is not controlled by a central bank or government. It sounds futuristic, but it is already a reality. It is changing the whole world, the financial system, the economy, and even everyday life. Let’s see why virtual currencies are so popular now, what is behind them, and how they work.

Why is it important to understand cryptocurrencies? How is our world changing?

Don’t think that cryptocurrencies are a fad, like everything that was once fashionable. It is changing not only the financial sector, but also global economic processes. For example, in 2023, the global cryptocurrency transaction volume was about 5 trillion US dollars. According to statistics, the cryptocurrency market will continue to grow in 2024. Cryptocurrency transactions will account for 10% of global monetary transactions.

The biggest difference between cryptocurrencies and traditional money is decentralization. It doesn’t work through a bank, but through a blockchain: a distributed database. This means that all transactions are transparent, secure, and, most importantly, instantaneous. For example, you can transfer money from one side of the world to the other in a matter of minutes, without the fees that banks charge. And for countries where access to traditional financial institutions is limited, cryptocurrencies are becoming a true revolution.

What is cryptocurrency in simple terms? Let’s analyze the concept.

When people talk about cryptocurrency, most people immediately think of Bitcoin, the first and most popular virtual currency. But in fact, this is just the beginning. Simply put, cryptocurrency is digital money that does not exist in physical form and is not controlled by a central authority. It works through a system called blockchain. This is a chain of data blocks stored on millions of computers around the world.

To understand the concept, imagine that each block is a page in a book. It records all transactions and cannot be deleted or changed. Blockchain is a kind of public ledger of all transactions, accessible to all participants in the network. But this does not mean that the data is public. It is protected by cryptographic algorithms that allow participants to remain anonymous.

How cryptocurrencies work: a look behind the scenes of the technology

To understand the details, it is necessary to know something about the business process itself. Cryptocurrencies are based on blockchain technology. It is not just a database, but a decentralized system without intermediaries. All transactions are recorded in blocks, and blocks are recorded in a chain. They are not generated and verified by a single party, but by thousands of computers.

Each participant (or node) in the network stores a complete copy of all records. It is no longer possible to change or falsify the information. Miners are responsible for verifying transactions: users make sure that the system works and receive a reward in the form of cryptocurrency. Mining is a process in which computers solve complex mathematical problems to verify the accuracy of transactions.

Types of cryptocurrencies: not all money is the same

When we talk about virtual currencies, we usually mean Bitcoin (BTC) or Ethereum (ETH). There are actually many different types. Let’s take a look at the most popular ones:

Bitcoin (BTC) is a pioneer in the world of cryptocurrencies. It was created in 2009 by a mysterious creator named Satoshi Nakamoto. It is mainly used as a means of accumulation and investment, although it can also be used for payments.
Ethereum (ETH) is a complete platform for creating smart contracts. It allows you to create decentralized applications (dApps) and perform complex operations such as token swaps, all without intermediaries. Many projects operate on Ethereum, including DeFi (decentralized finance).
Litecoin (LTC) was developed as a faster and cheaper alternative to Bitcoin and is ideal for micropayments.
Ripple (XRP) focuses on bank transfers. It is actively used for international transactions.
Stablecoins (like USDT) are pegged to real assets, like the US dollar. This minimizes volatility, making them suitable for settling and storing funds.

How do cryptocurrencies differ from regular money?

Cryptocurrencies are not just money, as everyone knows. Regular dollars and euros are controlled by government institutions and central banks. Unlike cryptocurrencies, they are not dependent on governments or financial regulators. It is not tied to physical assets, but exists exclusively in the digital space.

How do I buy cryptocurrencies? Step-by-step instructions:

Select a platform to buy. The most popular crypto exchanges are Binance, Coinbase, and Kraken. You can buy everything from Bitcoin to Ethereum and even more exotic coins.
Register on the platform. In order to shop, you will need to register, fill in your details, and confirm your identity.
Top up your account. This can be done via bank transfer, credit card, or other cryptocurrencies.
Select the cryptocurrency you want to buy. On the platform, you will need to select the currency you want to buy.
Make a purchase. Once the money is credited to your account, you can buy virtual currency.
Transfer cryptocurrency to your wallet. For security reasons, it is best to store your money in a wallet rather than on an exchange.

Where to safely store cryptocurrency: an overview of the best options

When it comes to storing coins, we distinguish two main types of wallets: hot and cold wallets. Hot: always connected to the network. These options are ideal for people who make frequent transactions, as they allow you to send and receive money instantly.

Cold storage devices, on the other hand, are devices that are physically isolated from the internet. They are considered the safest, as the cryptocurrency is not at risk of being hacked via the network.

Popular cold wallets: Ledger and Trezor. They offer secure encryption and storage of private keys on physical media. For everyday use, trendy formats such as Exodus and Trust Wallet are useful. They are easy to use and support a wide range of cryptocurrencies.

When choosing, always keep the following in mind: the larger the amount, the more secure the storage method should be.

Conclusion

Now that you understand what cryptocurrency is, how it works in short, and how it differs from traditional money, you can take action. The most important thing to remember is that this is not just another financial instrument, but part of a new economy. The sooner you start understanding the process, the sooner you will enter the future.

August 24, 2025

Altcoins in cryptocurrency: analysis of the best coins from Ethereum to Shiba Inu

The world of digital assets has long gone beyond just Bitcoin. Now altcoins in cryptocurrency are not just analogs of the first coin, but a full-fledged ecosystem that includes various technologies, goals, and applications. To navigate the digital market correctly, it is necessary to understand what altcoins exist, how they are structured, and why they are needed in general. This article will help you understand the essence of the phenomenon and identify which coins truly deserve attention today.

Varieties and functions of altcoins in cryptocurrency

In English translation, altcoins mean “alternative coins,” that is, everything that is not Bitcoin. Their role is diverse: from means of exchange to tokens governing decentralized systems. Today, altcoins in cryptocurrency can be classified into several categories:

Payment coins – used for transferring value. Example – Litecoin;
Platform coins – used for smart contracts. The most famous one is Ethereum;
Stablecoins – their value is pegged to fiat currencies. A prominent example is Tether;
Governance tokens – provide the right to participate in project development, which is especially important for DAO and DeFi;
Meme coins – created for community and hype. For example – Dogecoin or Shiba Inu.

Among the goals of such assets, we can highlight increasing transaction speed, enhancing privacy, implementing cloud solutions, and new approaches to managing resources within blockchains.

Top altcoins in cryptocurrency: who deserves attention in 2025?

Against the backdrop of thousands of digital assets, it is important to highlight truly significant ones. Here is a well-known crypto rating that the entire market follows:

Ethereum (ETH)

Ethereum is not just the second-largest cryptocurrency by market capitalization, but the foundation for the entire decentralized applications (dApps) segment. Ethereum is a blockchain platform where smart contracts are created and launched. It underpins the DeFi, NFT, and GameFi ecosystems. The transition to Proof-of-Stake has made the network more energy-efficient and sustainable.

Tether (USDT)

USDT is the most popular stablecoin, tightly pegged to the US dollar. It serves as a bridge between fiat and crypto: traders use it as an “intermediate currency” to lock in profits and protect against volatility. Thanks to high liquidity, USDT is present on almost all cryptocurrency exchanges. Despite ongoing discussions about reserve transparency, Tether remains a primary tool in the arsenal of most investors.

BNB (Binance Coin)

BNB is the native token of the largest centralized exchange Binance. Initially used for fee payment on the platform with a discount, BNB’s functionality has expanded with the growth of the Binance ecosystem. It is now used for participating in IEOs, staking, paying for goods, and even booking services. Additionally, the token is actively used in the BNB Chain ecosystem – the company’s proprietary blockchain, making BNB one of the most utilitarian and in-demand altcoins in cryptocurrency.

Solana (SOL)

Solana has gained popularity due to its high throughput (up to 65,000 transactions per second) and low fees. This is particularly important for projects working with NFTs and gaming dApps. Unlike Ethereum, Solana uses a unique combination of Proof-of-History and Proof-of-Stake algorithms, allowing for high speed without compromising decentralization.

XRP (Ripple)

The Ripple project and its token XRP were initially aimed at banks and fintech companies. It addresses the issue of slow and expensive cross-border transfers by offering instant settlements with minimal fees. XRP operates on its own RippleNet and does not require mining, speeding up transaction processing.

Toncoin (TON)

TON is a blockchain platform originally developed by the Telegram team. After legal difficulties, the development was handed over to the community, and now the project is actively evolving as open and decentralized. Toncoin can be used for internal payments in Telegram, service payments, creating smart contracts, and even launching custom tokens. Considering Telegram’s audience, TON has huge potential, especially in the CIS countries.

Cardano (ADA)

Cardano is a third-generation blockchain created with a scientific approach. Its development is based on academic research and formal code verification. The project offers high scalability, energy efficiency, and a multi-layered architecture, including layers for computations and smart contracts. Cardano is particularly popular in developing countries, where it is used for implementing educational, medical, and financial solutions.

Shiba Inu (SHIB)

SHIB started as a meme token in the spirit of Dogecoin but quickly evolved into an ambitious crypto project with the decentralized exchange ShibaSwap, an NFT direction, and plans to create a metaverse. Behind its growth is not just hype but strong community support. The main advantage of SHIB is active users creating a real ecosystem around the token.

Avalanche (AVAX)

Avalanche is positioned as a blockchain with ultra-fast transaction processing and the ability to launch custom networks. Its architecture allows for the parallel operation of thousands of independent blockchains (subnets), each of which can be tailored to specific goals. The project actively competes with Ethereum in the DeFi space, attracting developers with low fees and a flexible dApp deployment system.

The listed alternative cryptocurrencies hold stable positions in the market and have significant market capitalization. However, one should remember the volatility and risks inherent in the industry.

How to choose a platform for buying and storing?

Before starting to work with cryptocurrency, it is important to make a well-thought-out choice of a trading platform. The security of your funds, ease of use, and overall operational efficiency directly depend on how reliable and convenient the exchange is. Below are key criteria to consider when choosing a crypto exchange:

Presence of licenses and regulation of the exchange;
Account protection level (2FA, KYC);
Fees for deposits/withdrawals and trading;
Availability of popular tokens;
Convenience of the interface and responsiveness of customer support.

Among the popular platforms, Binance, Bybit, Kraken, OKX, and KuCoin stand out. Many of them support altcoins in cryptocurrency with high liquidity and offer advanced trading features.

Is it worth investing in altcoins in cryptocurrency in 2025?

Investing in altcoins in cryptocurrency is possible, but it should be done with a calculated approach. They are not just “cheap versions of Bitcoin” but independent products with different logic, purpose, and potential. Their volatility may be intimidating, but with a smart approach, they offer an excellent opportunity to grow capital, especially if you understand the purpose of altcoins and can distinguish between empty projects and truly useful solutions.

August 24, 2025