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:
Electroneum (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.
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.
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