The report’s title is “Dark Shadows with a Bright Future.” Its authors Martin Weiss and chief cryptocurrency analyst, Juan Villaverde thoroughly examine the cryptocurrencies available on the market by examining two factors. First, they assess the tech/adoption grade for long-term investors. Second, they determine the risk/reward grade based on short-term factors. Based on these, they estimate how likely a coin is to succeed and prove to be sustainable.
Grading the best
The authors begin by noting that in 2018 the market, despite downsides, enjoyed remarkable growth “in user transaction volume, network capacity, and network security.”
Martin D.Weiss, Weiss Rating’s founder, stated that:
“Equally important is our finding that these improvements are often powered by an evolution in the underlying technology. Therefore, for those willing to take the risk, the best time to invest could be very near.”
According to Weiss, the most promising cryptocurrencies include:
- XRP — Grade A
- EOS — Grade A
- BTC — Grade A
- ETH — Grade A-
- Cardano — Grade B+
For example, Weiss believes that Ripple will soon challenge SWIFT, while EOS is expected to compete with ETH and become the internet’s backbone. BTC’s Lightning Network upgrade enables it to become a popular store of value for savers and investors. Concurrently, Cardano “aims to provide the most advanced smart contract capabilities, monetary policy and governance. ” Other coins which made it to the top 10 include Steem, NEO, Stellar, Zcash, and BitShares.
The findings somewhat reiterate Weiss previous claims. For example, in December, the company stated that “XRP has a competitive advantage” over other cryptocurrencies in the area of payments. Before that, in September, it characterized XRP, IOTA, NEO, and Cardano as ‘absolute steals’.
Before you take out your savings
The new rating might instantly make you want to invest, which is why the authors of the report advise not to rush into it. They say that investors need to take into account that the cryptomarket is still a risky affair. Within this context, it is noteworthy that Weiss Crypto Ratings has not allocated an A grade to any of the coins. Only BTC, EOS, XRP and Binance merit an overall rating of B-.
Overall, Weiss Crypto Ratings allotted adoption/technology grades to over 120 cryptocurrencies. These are available online to all market players, including consumers, investors, and businesses.
Other trends to look out for
Weiss and Villaverde also identified five trends that crypto enthusiasts should be keeping in mind:
- An important segment of the cryptocurrency industry is enjoying remarkable growth in the volume of user transactions, a key aspect of adoption.
- Improving adoption is largely powered by improving technology.
- The way cryptocurrencies are secured is changing quite rapidly. Delegated Proof-of-Stake (DPoS) coins are on the rise, while Proof-of-Work (PoW) coins are losing market share.
- Some cryptocurrencies are moving beyond blockchain entirely.
Killer dApps (Decentralized Applications) will play the biggest role in determining the future winners. Examples include decentralized, crypto-based social media, peer-to-peer lending, and fair and secure elections.