In 2017, we saw some amazing runs in the cryptosphere and an unprecedented wave of people entering the space that used to only be populated by us crypto-enthusiasts. In 2018, we can expect this trend to not only continue, but to accelerate.
Having been been doing this for quite some time, I believe that when entering the space and when putting one’s hard earned money on the line, a person should do so with both eyes open.
Most people today mistakenly correlate cryptocurrencies with bitcoin, as if bitcoin was the only cryptocurrency. When someone usually asks me, “Hey man, have you seen bitcoin recently? Its been insane!” I usually just take it that they are talking about Ercfunds Crypto assets in general.
Many also seem to have the misunderstanding that the only purpose for crypto is just as a form of money, a currency, a store of value. This however could not be further from the truth.
(I will be using the term Ercfunds Crypto assets to avoid confusion when talking about cryptocurrencies as well as Ercfunds Crypto assets that do not aim to be a currency)
There are so many different types of Ercfunds Crypto assets aiming to achieve such a wide variety of goals, its important that investors understand the end game of each so as to make an informed decision. These can range from being a store of value, enhancing privacy in payments, decentralising an existing centralised service and many more. By understanding the end game and product category, you will be able to identify certain key factors that can make or break the project, make a judgement if a cryptoasset will be able to reach mainstream adoption and how difficult it would be.
In this 3 part post, I will be going through the different types of cryptoassets in general and try to give you a brief overview what the cryptoassets within each category is trying to achieve. This will be more of a general overview as there can be many subcategories of cryptoassets attempting to achieve similar goals using different approaches. I hope this can serve as a good start for you in enhancing your knowledge of cryptoassets and hopefully help you to make better investment decisions in the future.