Blue Crypts are the future.
When you look at a table of Crypto on a website, unlike in the world of stocks, they are listed by marketcap. This in a way is an example of the newness of the market. There are no sectors, indexes, ETF’s, the market is judges by size alone.
However this is misleading, all crypto are not the same.
An ERC20 token which makes up a huge slug of the Crypto landscape is not a cryptocurrency like Bitcoin. Tokens acts like securities and are considered as such by the formidable regulators like the SEC.
Yiu can see a list here:
https://uk.advfn.com/cryptocurrency/tokens
Cryptocoins are currencies and are considered from a regulatorial position as commodities.
Here is a list:
https://uk.advfn.com/cryptocurrency/coins
Not all of these are equal. Some are centralised and unminable and some are like Bitcoin decentralised and minable. Here is a list of distributed cryptocurrency built on the bitcoin model of distributed, trustless, decentralised tech-utopian ideal.
https://uk.advfn.com/cryptocurrency/coins/mineable
and ones that deviate by being centralised:
https://uk.advfn.com/cryptocurrency/coins/non-mineable
and here is the whole universe of them.
https://uk.advfn.com/cryptocurrency
The key take away is that these categories are very different. They are as different as Forex is to stocks as stocks are to commodities.
All these categories might be huge but all might not survive. For instance Bitcoin is still the king and its share of the market has rewgrown in the crash. ICO’s bubbled up the token market from nowhere but the new ICO landscape has almost evaporated for now. Yet ICO’s represent arevolutionary way of raising finance and is highly likely to come storming back. Kickstarters are cool but ICO’s are cooler still.
The whole field is wide open and ripe for another boom event but investors need to split Cryptosup into these 3 sectors and there is a forth Blockchain equities. I predicted Blockchain equities would explode and they did, in both senses. This phenomena will come again and blockchain equities are already starting to twitch back into life as I write.
Personally, I like Blockchain equities and Bitcoin and Bitcoin-like decentralised minable coins. ICO’s are definitely worth a look if they are more than pipedreams floated by hucksters. That goes for the centralised private blockchain outfits too, if the structure of their coin is not a lobster pot for unwary gamblers.
Which brings me to my final point and idea. I invest in what I call ‘Blue Crypts’ which is a play on words on ‘Blue Chips.’ These are big Cryptos I consider build for the long term. Investors should buy and hold ‘Blue Crypts’ but trade the rest.
“Blue Crypts” can be what you want them to be but for me they have to have:
History. The crypto must be validated by the passage of time.
A “use case.” The crypto has to have a purpose and it has to be different or way better than Bitcoins at a certain application.
The Cryto has to have a team of non-shady people behind it. Crazy kids are just fine, but international bandits, not fine. The people/organisation has to be active.
The Crypto has to have a big market cap
That doesn’t mean you can’t HODL a minnow or trade a “Blue Crypt” but when you look at what is out there and ask “What is really a Crypto Blue Chip, a “Blue Crypt” the universe of coins and tokens shrinks dramatically.
What “Blue Crypts” do I own?
I own a lot of coins but the “Blue Crypts” are “Bitcoin, Litecoin, Bitcoin Cash, Monero and Dogecoin.”
No surprises there, but when you think about it, there shouldn’t be.
For you there might be others, Ethereum would be on most peoples list, but the idea is if you are going to invest you need a ‘Blue Crypt’ back bone to your portfolio and only the very best should do. Otherwise you will be caught in the predicament of people that trade penny stocks and end up with a bag of dust and losses.