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How to Pick The Best Cryptocurrencies to Buy

tokens to buy

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.

Exchange Tokens
Staking Tokens
Utility Tokens
Tokens with Reflections (RFI)
Meme Token

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

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:

The price rises faster thereby increases your return on investment. Example is Pancakeswap, which started in 2020 and by 2021 the value has reached $24 per token.
You can stake the token to earn more tokens while you wait for price to rise.
The token is listed on the exchange from day 1 giving it an advantage above other tokens. And it does get opportunity to list with more exchanges as well than other tokens.

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.

PancakeSwap
Binance Smart chain
Ekta
Ethereum
Crypto.com
BItMart token
POSI Token

STAKING TOKENS

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:

You earn more tokens while waiting for token price to rise
The value of your staking rises as the value of the token rises increasing your return on investment.
It’s the best way to earn daily income from crypto
Annual Percentage Returns (APR) are usually higher than you can ever get from any other investment .
It’s the fastest way to multiply wealth in crypto investment

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.

POSI Token
Ekta
Amor
WSPP Token
PancakeSwap
Fresh Cake Swap

UTILITY TOKENS

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:

the price appreciates much faster
It has user case and attracts a lot of investors interest
You can trade or easily swap it with other tokens
It’s get easily acceptable to exchanges and increases its speed of listing

Examples of Utility Tokens

POSI Token
Ekta Token
PancakeSwap
Binance Coin (BNB)

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:

It doesn’t require any staking fees or network charges to earn reflections
It discourages holders from selling fast and helps to increase token price
You can earn huge reflections when buying and selling gets high
It’s the easiest way to stake your token without actually staking it

Examples of Reflection Tokens

POSI Token
Babydoge Coin
CCDOGE
Safemoon

MEME TOKEN

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:

It usually have huge fan base supporting the meme
It discourages holders from selling fast and helps to increase token price
It can generate high ROI in a short time with pump and dump

Examples of Meme Tokens

Dogecoin
Babydoge Coin
Akita Inu
Shiba Inu

Conclusion

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.

If you would like to learn more about crypto investments join my telegram group. Click this LINK to JOIN CRYPTO LESSONS NOW.

To swap, stake or farm POSI Token, click or copy Link , paste in your TrustWallet or Metamask DAPP to connect to Position Exchange

Disclaimer: Crypto or any other investment generally is volatile. This post doesn’t encourage a risk-free investment. You have to consider all your options and possibly Do Your Own Research (DYOR) before investing in any investment project.

Chinedu David
Chinedu David is a business consultant with experience in oil & gas, hospitality, IT & telecom, consumer products, business strategy, marketing and distribution. He was the telecom editor for SuccessDigest for over a decade. And founded Mystore, one of the indigenous online marketplace in 2013. Drop a comment below and he will respond to your query. He can also be reached via email: nedu@myblog.com.ng or Call/Text/WhatsApp: 07087770518
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1 Comment
  • MyBlog Oct 11,2021 at 11:49 pm

    […] migrate them. That would mean that you have the corresponding LP to the vault you want stake into. POSI allows BUSD and BNB vaults. So, you would need POSI-BUSD LP or POSI-BNB LP to migrate to the […]

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