History of the currency
Because cryptocurrencies are here for a short time period (BTC started in 2009), it is very importatnt to check how long is the currency, that you would like to chose, on the market.
Problem that the currency solves
Each cryptocurrency solves different problem. Bitcoin solves problem with certain monetary system and another currency can be a tool how to build a new infrastructure, marketing solutions, and many more.
Official and well known cryptoexchanges
If a cryptocurrency is listed on wellknown exchanges, that shows us it is something legit and probably not problematic project. It still also means there is a certain risk.
Number of the coins
Some of the cryptocurrencies has unlimited number of their coins and if the coins are all mined the developers can "print" more coins. This is something that I don't like because it brings inflation as same as the classical monetary system and it is something that I want to avoid.
APY - Annual Percentage Interest
This part could be added to section of Terminology but it's not done yet. So, we will keep it here in Crypto Criteria as we talk a lot about crypto here. Crypto has it's own system of financial services which is simply called DeFi. It's still such a pioneering so we should consider it as gold mining during 19th century.
Now the explanation. Annual Percentage Interest simply means how many % a year you earn on your invested money. Good example would be 10% APY. It would be this: 1000 units of deposit would be 1010 units after one year of working.
But there are many projects/banks/institutions which let your money compound after shorter period of time. Let's say the compounding will be done every 7 days.So, do you think the final result will be 10% p.a. "only" ?
The tab bellow this article shows you the result of 10% APY with 14 day compound effect on 1 time deposit of 1000 units. Is it not amazing?