Since the end of the year 2017, the cryptocurrency market massively exploded. But even 2018 it starts with an uncomfortable slump, with a total market value of over $400 billion the value is still well above the total market value of most of 2017.

As a new investor, you could blindly invest money in any top 100 cryptocurrencies in the market and this had become an unsustainable strategy. Information is spreading at a rapid speed but reliable and quality information has become more and more scarce.   

So, we are here gather some useful information and tips that help you in process of finding the winning cryptocurrency.

1.Intrinsic Value

The best things to do to start investing in cryptocurrency is to try and evaluate the current intrinsic value of a particular cryptocurrency. Evaluate thoroughly, you will understand the risk involved in the particular cryptocurrency. A cryptocurrency intrinsic value can be speculated from the service they provide. The higher the intrinsic value of the cryptocurrency the less risk it has to invest in it.

You need to evaluate whether or not the cryptocurrency actually used? Do people need this cryptocurrency? If the answer is Yes, then that cryptocurrency has far more solid basis compared to the other in the market.

Next is the Scalability of the particular cryptocurrency. Yes, many of new investor doesn’t seem to care or even understand the blockchain technology behind the project and it hasn’t been noticed that Bitcoin is struggling in scalability issues. But it doesn’t mean that blockchain technology is not ready to be adopted by the mass, it just shows the shortcoming of those well-known blockchain technologies.

2.Protocol Coins vs Utility Coins

When looking for the next winning cryptocurrency, it’s important to understand the difference between protocol coins and utility coins. A protocol coin is a cryptocurrency that accompanies a blockchain on which blockchain applications can.

The applications are built on top of these blockchains issue utility tokens that you can make use of it. There are a lot of utility tokens in the market are build by several blockchains such as Ethereum blockchain and NEO blockchain, there are far more utility tokens then protocol coins.

Every application build on that blockchain adds more value to that blockchain. So, the more applications that are built on that blockchain the more people will people potential users of that blockchain. Just like Toa Coin, Toa Coin is a protocol coin that has its own blockchain and utility coins. When the more applications or company use Toa blockchain it will expose more them to all the Toa ecosystem that has to offer. When the more applications and the higher quality applications build on top of Toa blockchain, the more Toa will be worth.

By it means, investing in protocol coins come with less risk then utility tokens. When you invest in protocol coins/blockchain, the return of investment or should say the value of the particular protocol coins determined by the growth of the blockchain ecosystem. So, why invest in utility tokens? Why not invest in protocol coins?   

3.Potential Demand

When we talk about potential demand, the meaning here refers to the usage of that particular cryptocurrency for the long run. For the current market, they are being traded for the potential future returns, which actually based on whether or not it will be used and accepted.

So, you need to ask yourself: Is this cryptocurrency will be demanded based on the use case, is this the cryptocurrency that everyone will use on a daily basis?

Another factor that you should look into is the industry that the particular cryptocurrency is targeting. Yes, protocol coins allow any kind applications and this might not be a huge concern for a protocol coin. But, for utility tokens its value are limited to the industry that it’s targeting. There are also utility tokens that target on a wide range of industry but you need to understand the use and are they work well on all of that.    

Concluding

Protocol coins already have an existing user base, partnerships, and a scalable blockchain with a huge potential group of users. All this fact shows that the safest bet when it comes to choosing a winning and potential crypto investment. There are quite a number of these coins in the market and keep expanding its blockchain technology to provide high-quality technology. Toa Coin is one of the protocol coins that in the market which looking to adding its value and expand it blockchain tech to the cryptocurrency and blockchain realm.