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RE: Maintaining Your Crypto Garden - Asset Management Tips and Tricks

in LeoFinance3 years ago

Thanks for writing such a great and detailed article. I really appreciate your efforts. I have a question please: you mentioned that dogecoin and litecoin are considered foundations and you invest 50% your portfolio into them (along with other cryptocurrencies). But I don't understand how to make the difference between high risk cryptocurrencies and the ones with good foundations. For instance, we all agree that Ethereum has strong foundations, but dogecoin, despite being so old in the space, is considered a shitcoin by many investors and its founder himself admits that it was created as a "joke". Add to that, there isn't really much going on in the litecoin network . I personnaly think Polkadot is a better investment than both of them. So how can I make the difference between the foundation coins and the high risk ones?

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Thanks. I'm glad you liked it.

As for your questions, it will always come down to your own research and how convinced you are that your choice is better than mine.

Polkadot and ETH, for example, are two separate things. ETH is slow and clunky because it is being secured by millions of miners worldwide and it takes much longer to validate a transaction, while Polkadot will be much faster because it will be secured by a handful of nodes thus compromising security for speed.

Explore the blockchain trilemma problem to better understand this whole thing. Thinking long-term which of these projects has a higher chance to attract more funds and users? No one really knows so you will be forced to make your own bet or follow someone else's.

I'll be writing an article on this subject in the coming days so be sure to stay tuned.

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