There are a whole lot of Cryptocurrencies out there right now, and more are created every day, so how do you tell which of these brand new currencies you should purchase tokens in?

How many are being produced?

So, the whole about the price of something, including currency is supply and demand. So for instance, a cryptocurrency with 2 million coins will find it difficult to ever find any value in the market unless it’s very very lucky. (I’m not talking about Bitcoin/Ethereum and the main ones here, just the new ones coming out). Investing in these coins will probably mean that your investment will never get any return, you’ll never be able to sell them because there is simply so many and not enough demand. If you buy a coin with less production then if there are more buyers the coin will go up in price on the market.

Imagine if you have 2.5 million apples and only 6 people want them. Each apple will be worth virtually nothing, however, if you had 6 apples and 2.5 million people wanted them, those apples would be worth a fortune… and someone would be willing to pay!

Who is producing them?

Anyone who has a slight bit of programming knowledge can start a currency on the Ethereum network. So who is behind the currency, does it have a purpose? For instance, if you see an ad’ on Facebook and you type INFO and someone contacts you and sends you tokens, with no website, nothing to back it up, they can just as easily disable your tokens from within their contract. So only invest in people you trust, remember, all these currencies are only regulated by mathematics.

If the people producing the currency are hiding behind an anonymous website, then it’s a good idea to stay away. If you can see who is running the contract for the currency if they are open and upfront, you will probably be fine.

Free Giving away and Dividends

There’s nothing that devalues a currency more than if it’s given away, basically giving it away means that it’s worth, well, nothing. If no one ever pays for it or puts any money behind the currency it’s really not worth the public keys it’s using. Dividends are interesting as well, unless the currency is backing something that makes money, then it’s very hard to see how they will give you dividends, to add to that, if to give out the dividends they simply produce more currency (banks and governments do this regularly, it’s called quantitative easing or QE), then this will further devalue the currency.

A great solution?

So that’s why our coin UKB is structured as it is. Only a limit of 250,000 and minted at $15/£10 per coin – that way it holds its value because that’s the only way of getting them is either to buy them on the markets or through this website, once they are gone, they are gone and while some people will keep them for investment, a lot of people will trade them on the markets.

Click Here to find out more about UKB coin.