If you are looking for how to make money now, invest in crypto. But that’s not all. Even though cryptos are a great store of value for investors now, there are fraudulent cryptos posing to scam investors off their money.
The best crypto tokens are now difficult to spot. One has to look well to see what’s being offered and why it’s worth risking his funds in the project. While many crypto projects don’t prove the identity of the founders or their ability to operate a crypto project, one can find some solace to invest in some project by picking the right ones.
Yes, if I would have to wait for a long while to see value in the crypto project I invested in, I might as well ensure I invest in the right ones. The projects are too many now. So, using your time for only what would work best for your money is the right way to go.
Although, this article doesn’t address the issue of fraudulent token projects, but it does show you what types of tokens can earn you the most value in your Investment. It will help you find which crypto tokens are best investment for you and why you should trust them as a store of value for your money.
How Crypto Tokens Work
Tokens are used as a medium of exchange. They are tradable and can be used to exchange for goods and services, whether online or offline. But more uses for crypto tokens have not yet started. The world will one day wake up to other uses for crypto tokens in the future.
Right now, tokens are created to as a digital replacement for conventional currency. They are built on Blockchain technology, which provides some high level of anonymity. That way users can exchange and transact with tokens without revealing their identity to one another.
Crypto tokens also provides a fast means of payment for goods and services. But the primary reason investors flock the Blockchain to buy tokens is for its store of value. It’s one of the fastest ways of acquiring great wealth with little capital.
Those who bought Bitcoin at the early days can attest to it. Bitcoin price has grown from an insignificant value from its early days to what it’s today. The same applies to many other crypto currencies. It’s also the reason many new tokens are flooding the market, looking for a share of this new found wealth.
Types Of Tokens to Buy
There are different types of tokens investors should always consider before buying. I will show you these tokens and reasons behind each one to help you understand the best tokens you should be buying. Each of them presents some benefits for your Investment.
While you can pick and invest in all the tokens I have explained here, you should use this to find the tokens that provides huge benefits in all the categories.
Note that some tokens may have a combination of two or more of the different token types. That makes them better choice for investors.
Exchange tokens are native tokens of an exchange. They can serve as utility and staking tokens as well. They are high in value and their price do appreciate faster more than order tokens.
Every exchange token belong to its own exchange where the token is the primary token of transaction. Some exchange tokens are also used as primary tokens outside their exchange. An example is Binance Smart chain token.
There are two major types of exchanges – centralized and decentralized exchanges. You can buy any token as long as it has the native token of an exchange.
The benefits of buying exchange tokens are many:
Examples of exchange Tokens
There are so many exchange tokens in the market now. I will just give you a few examples. From the explanation you can easily identify a DEX token when you see one.
These kind of tokens are investors delight. They help you earn money from crypto on daily basis. It’s like fixed deposit investment. You stake your tokens to earn more of the same tokens or of a different tokens.
Every token is stakable. However, while some built their own platform to operate staking, some don’t have their own platform, making it difficult to stake them. Also, some partner with other staking sites to stake their tokens.
This should not really be a way to classify tokens but it’s important when buying into a new crypto project. It’s helps you maximize your investment from inception – at the time nothing much is expected from the token.
The benefits of buying staking tokens are huge:
Examples of Staking Tokens
What really makes the difference for each token is the APY (Annual Percentage Yield). Some tokens yield more than others. However, some new token projects create their own Staking pool, making them stakable as they are launched.
Almost every major Cryptocurrency is stakable. So my examples will explore few new tokens that have established themselves from the beginning, with their own ecosystem for staking.
Utility tokens are tokens with use-cases. This has been the plan for tokens until Dogecoin changed everything, and added meme token to the list. Every token is designed to have a use case.
That’s what makes tokens valuable and useful as a currency. Although every token project may claim use case just to get users interest, you have to evaluate the present and future uses before buying into any project.
The benefits of buying utility tokens are huge:
Examples of Utility Tokens
TOKENS WITH REFLECTIONS (RFI)
This kind of auto-staking tokens was made popular by Safemoon. It’s the easiest way to stake your tokens while your tokens are still in your wallet address. This uses the RFi technology that rewards token holders with some percentage of the gas fee.
It works by taking a percentage of every token buy and sell and sharing it among the existing holders. BabyDoge Coin takes 12% when you buy or sell but only 5% of it is shared among holders.
So, this works only when there’s a buy or sell of the token. It’s not a guaranteed way to earn from staking but it does have a huge potential for investors.
The benefits of buying reflection tokens are huge:
Examples of Reflection Tokens
This one really took the world by joke. Yes, meme tokens are tokens without proper utility or started as a joke like Dogecoin. The concept was started by Dogecoin. But the huge disadvantage is their large token volume and lack of any use case.
The benefits of buying meme tokens are:
Examples of Meme Tokens
You don’t have to keep wasting money to buy any crypto out there just because they promised heaven and earth in their white paper. You should know what you stand to gain from the project if you buy.
There are so many scam token projects out there. They can promise quick return on your investment but that’s just to rip you off. Learn about crypto investment and stop throwing your money away at every seemingly promising project.
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