All cryptocurrencies can be divided into categories depending on the risk and potential profitability. Here's how Andrei Kirilenko, director of the Center for Global Finance and Technology, proposes to do this:
At the very bottom of the table are the digital currencies issued by central banks. These include, for example, Petro in Venezuela, eCFA in Senegal, or Sovereign in the Marshall Islands. They are in the zone of minimal risk but they will not get a big profit either.
The next in the table are stablecoins, such as Tether or Gemini Dollar. They can bring in more income but they are also associated with greater risk. Especially given that many participants in the crypto market are skeptical about Tether.
Cryptocurrencies are placed further in the chart. Bitcoin, ethereum and other well-known digital assets can bring good profits to their owners but the risk is already getting much higher.
Finally, the tokens are located at the very top of the chart. These include service (BAT, Civic, OmiseGO, TRON) or investment tokens (BCAP). They are the riskiest asset.
And what would you choose — high risk and high potential profit or low risk and stable (but insignificant) profit?
The next in the table are stablecoins, such as Tether or Gemini Dollar. They can bring in more income but they are also associated with greater risk. Especially given that many participants in the crypto market are skeptical about Tether.
Cryptocurrencies are placed further in the chart. Bitcoin, ethereum and other well-known digital assets can bring good profits to their owners but the risk is already getting much higher.
Finally, the tokens are located at the very top of the chart. These include service (BAT, Civic, OmiseGO, TRON) or investment tokens (BCAP). They are the riskiest asset.
And what would you choose — high risk and high potential profit or low risk and stable (but insignificant) profit?