Token types to analyze and Invest on

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When investing its not all about buying and storing or staking tokens. You have to select, analyze and diversify your portfolio. Imagine you invest only in the Meme tokens and then after keeping them for years you then discover they do not have much volatility or they have no use-case. This will leave you with a bunch of useless tokens in you portfolio, so you should try to diversify your portfolio.

What should you consider?

  • Categories

  • Project Behind

When selecting token to invest in you should analyze them in their categories so that you see which categories have the bright future. Here is a short list of other categories to look at:

  • Decentralized Finance (DeFi)

  • Yield Farming

  • Crypto Exchange

  • Memes

  • Metaverse

As we all know, adoption of a crypto currency determines its future. If an altcoin or token is well adopted then its future is bright. For that to happen, that altcoin should give investors reason to buy it.

Investors these days they are into love with the Decentralized Finance and Metaverse tokens, so which means if you play your cards right and chose the right DeFi and Metaverse tokens then the chances of you making money is high because DeFi and Metaverse are on demand.

There is a proverb which says, "the puppies do not open eyes on the same time" which means they do not see the sun at the same moment, each has its own time to see. So same with the Crypto Market, the altcoins are not ripe at the same time, you will see that when most altcoins are sky rocketing some will be ranging and you can not tell when they will move. So the best move is to diversify because its difficult to predict when its time for a certain altcoin to move.

Investors are into yield farming these days and especially in these days when the whole crypto market is in red sea, investors would be looking for Yield Farming platforms to stake and yield so whichever token is behind a certain yield farming will increase in value e.g Harvest Finance or Aave (LEND).

So i think it will be wise to also get involved in the Lending and Yield Farming so that you acquire more altcoins during the winter so that when the market is bullish your bags will be loaded.

Centralized Crypto exchange and Decentralized Exchange based tokens are also good to invest in as there are higher chances of them going up e.g Binance Coin was launched selling for $0.11 but it has an all time high of around $600. Now it has a Decentralized exchange where traders can now freely trade without any limitation or Know Your Customer requirements. There are other promising Centralized Exchange tokens still trading low and there are higher chances that they will make it to the top. We never know what the future holds for those and i think its wise to grab some tokens and keep them in your bag.

Decentralized Exchange tokens such has Pancake swap, Apeswap, Uniswap and many others are a good examples of Decentralized Tokens. We never know what will happen with the crypto verse so its good to buy invest in a diversified portfolio so that if another category is stuck it does not affect the rest of the portfolio.

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