In a crowded marketplace, it’s important to have a careful eye when assessing cryptocurrencies for investment.
There are thousands – if not tens of thousands – of different cryptocurrencies available in the modern crypto marketplace.
But they’re not all created equal. Cryptocurrency is a volatile investment class, so investor caution is always advised.
But how can investors filter the wheat from the chaff?
This was a major topic of conversation at the recent Token 2049 conference in Singapore.
There’s no easy answer. But there are some key considerations that investors can weigh up before proceeding.
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1. Institutional interest
Governments and financial institutions are generally required to undertake considerable due diligence before they invest in, or express their support for, a financial product.
So if you’re looking at whether a cryptocurrency has institutional interest, there are some questions you can ask.
* Are there any banks, investment funds or other financial institutions that hold the cryptocurrency?
* How much do these organisations own?
* Have any governments expressed their support and do they have holdings themselves?
Some cryptocurrencies that fit this criteria include Bitcoin, ETH, XRP and Solana. But there are others, too.
Let’s look at Crypto.com’s CRO coin as an example.
CRO is part of the Cronos Ecosystem, which includes a number of blockchains designed to support a wider Web3 experience.
It’s a relatively new entry to the cryptocurrency scene, but it has already attracted wider interest.
At time of writing, World Liberty Financial, a DeFi and crypto company with close ties to the US government and Trump family, has invested $6.4 billion in CRO.
You can learn more about CRO on the Crypto.com website.
Figures like this should be considered alongside other factors, but they can be viewed as potential future expectations for a cryptocurrency.
2. Utility
Most cryptocurrencies are designed to solve problems or serve as jumping-off points for future tech development.
For example, Bitcoin was originally intended to be used like digital cash to protect online privacy.
ETH attracted significant attention for its ability to host decentralised apps (DApps) and smart contracts.
Today, utility isn’t necessarily the be-all and end-all of a cryptocurrency’s success. But it is something worth keeping an eye on, to see what potential value it might add to the market.
3. Historical Performance
As with any investment, past performance is not always indicative of future performance.
However, it is a metric that can be useful in terms of determining wider interest and stability of a particular investment over time.
Bitcoin is one example. It’s the world’s oldest and still most widely held cryptocurrency.
Recently, Finder founder Fred Schebesta posted a rundown of Bitcoin pricing on Halloween between 2010 and 2025.
Although there have been ups and downs over the years – closer study is always necessary for investing in crypto – there is a consistent pattern of growth.
Similarly, cryptocurrencies like ETH, Ripple and Solana have also seen fairly consistent growth over the years.
Additionally, having historical context can be useful for avoiding overcapitalising on novelty or “memecoins” that function much like pump-and-dump schemes.
While some memecoins have had greater longevity, most don’t.
It’s important to note that these aren’t the only considerations for assessing the suitability of a cryptocurrency for investment.
Always make sure to research new cryptocurrencies carefully, looking at other factors like investors, development team and surrounding community.
This can help you make a more informed decision.
Learn more about CRO and Crypto.com today
