What Catagory of Alt Coins should you Invest in?

There are seemingly an endless amount of alt coins to invest in, so to make sense of the dizying array, I like to separate alt coins into categories. You have platforms, b2b, social media and apps that require adoption, exchange coins, and of course a host of opaque white papers that have no clear business model.

Let’ start with platforms as I believe the winners in this category will be some of the best investments you can make. A perfect example is ethereum. Lots of developers use the platform and build on top of it, thus validating the existence of the platform. The success of any of these projects built on top of Etheruem add to the value of ethereum. There are other platforms out there like Qtum and others in development like Cardano and EOS. Cardano is drastically over valued in my opinion when you stack it up side by side with battle tested Ehereum, so there can be over exuberance in this space. (sorry Cardano fans). What has really got my attention lately is the securities platform. I have been researching Polymath lately and find it intriguing but at least to my knowledge they do not yet have an ICO. If anyone has more info on the timetable of Polymath, I’d love to hear it.

Next we have b2b which are things like Ripple and VeChain. They can be sexy buys and really pump when announcements come out. Many of these businesses, though, aren’t that revolutionary and face adoption problems. I invest in some of them, but having an exit strategy matters and be sure to set up your stop limits especially when a pump happens. Again we run into many projects that are still in development. There is money in hype so don’t ignore this space, but I don’t recommend buying and holding indiscriminately.

Social media coins like Steem are interesting because we know people use it. As adoption increases, theoretically the coin will gain value. Steem proves that this space can make gains even with just early adopters. Other projects that have caught my eye or bitclave with decentralized search engine and flixxo for decentralized video sharing. YouTube does lots of censoring and takes the lion share of profit, so I see the market for it. You also have things like Storj and Datum that can gain traction with more users adopting. Our information is ours. Shouldn’t we and not a third party profit from it?

Exchange coins like binance are another category with proven utility. I don’t think this is a space to search for 10x plus gains fast, but people value the ecosystem so they will value the coin.

Lastly, if you can’t categorize a coin, avoid it at all costs. I realize I have left out privacy coins like Monero simply because I don’t hold any and am not well versed in that space, but I definitely see the value in privacy coins .