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Weiss Ratings, an independent rating agency, conducted an investment analysis of cryptocurrencies, highlighting the weakest digital assets. Earlier, in January, the agency issued its first rating on cryptocurrencies.

 

The rating is based on four main indicators: the risk index, the yield index, the technology index, and the fundamental index.

 

The first indicator measures the price fluctuation for some time. The second considers the percentage of profitability. The third one assesses the level of anonymity, the possibility of updating the technology, scalability, as well as other technical advantages or disadvantages. The fourth indicator measures the speed of transactions, decentralization of block production, network bandwidth, developer participation and other factors.

 

For the tokens, the letter ratings D and E were displayed, where D means “weak” and E is “very weak”. According to Weiss Ratings, currently traders should avoid investing in the following cryptocurrencies:

 

Auroracoin (D-)

Comet (E-)

Electroneum (E +)

Expanse (E)

Gulden (D-)

Matchpool (E)

Megacoin (E-)

Novacoin (E)

PotCoin (D-)

Quark (E-)

Rise (D-)

SaluS (E-)

 

In the report, experts also advise placing in cryptocurrencies no more than 5% of liquid assets, “if you do not play at high rates.” In addition, analysts advise to refrain from investing in any cryptocurrency, if its rate suddenly starts to grow rapidly. Instead, they advise adding small positions at local minima.

 

Although Bitcoin is able to demonstrate a good profitability in the future, traders should not forget about other, newer projects, “such as EOS or NEO.”

 

Recently, the agency upgraded the rating of Bitcoin from “C +” to “B-” in light of the development of the Lightning Network. “With Bitcoin, there are still significant technological barriers, but it does not die out,” experts say.

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In the January rating the highest score of “A” was not received by any cryptocurrency. Rating “B” was granted to Ethereum, “B-” to Cardano and Neo, Bitcoin was awarded only the “C +” rating, and Bitcoin Cash – “C-“. Rating “D” was given to Novacoin and Salus (which are no longer in favor with the agency).

 

The highest of the assigned ratings (“B”), except for Ethereum, was received by the EOS cryptocurrency, the 9th largest on the cryptocurrency market, CNBC reports.

 

The agency attributed the lower estimate of Bitcoin to the fact that the largest cryptocurrency is facing network difficulties, which leads to delays and high transaction costs. Bitcoin does not have a direct mechanism for an urgent upgrade of its code.

 

Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.

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