As the cryptocurrency industry becomes more and more prosperous, more and more people choose to invest in cryptocurrency.
So how to choose the correct investment bitcoin?
Maybe coin friends can share their experiences.
The best place to track the progress of any cryptocurrency is through crypto variability, and this can be done by analyzing the volume of the day, the liquidity of the cryptocurrency, the market capitalization, the activities of the developer and the market price.
Learning all the features listed above will make you make the right choice and learn more about creating a new Altcoin and whether to trade it. You can also use
https://coinmarketcap.com/ to help you choose the best one.
24 hours volume:
In a digital currency or cryptocurrency, analyzing the value of transactions that have been made per day will help you decide whether the coin is worth investing or not. However, this value is referred to as USC and BTC. If the value of trades per day is high, it gives you an idea of how strong the coin is. You need to choose a digital coin with a minimum trade value of about $ 10,000 per day. This establishes and shows the level of trust that people need to invest in it. It is very rare for successful investors to buy a certain digital coin with a smaller trading volume. So don't take any chances!
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Cryptocurrency liquidity:
You can measure the liquidity of an encrypted currency by its percentage volume and Bitcoin volume. The liquidity of the cryptocurrency is aligned with a term called 'Wash Trading', which can occur with a higher or lower volume of digital currency. Liquidity, namely the ability to sell and buy a certain amount of currency without having to change the price sharply in one direction or another is extremely important for any asset. Who needs a cryptocurrency that cannot trade in one direction or another ?!
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Current market capitalization and price:
The market capitalization of a coin can be estimated by multiplying the number of coins that are on the market at the current market price. However, this should only be done for mined digital coins.
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Bitcoin (BTC): The dominant cryptocurrency gives way, interest is transferred to altcoins:
Then you can note that most cryptocurrencies usually increase the number of coins issued to attract more merchants for themselves. Therefore, you need to know the true value of a coin before choosing it.
The current price of a coin is not really an indicator of its real value and should not decide whether you should invest in it. However, what you need to look at is the future and technical goals that a particular crypto platform has - so don't be fooled by the low price of a cryptocurrency if you want to invest in it.
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Developer activities:
This measure is one of the vital moments we need to think about. Anyone involved in software development (coding and website design) can create their own cryptocurrency without much effort. However, you should know that it is possible to be deceived. This is due to the fact that most of these coins (successful and unsuccessful) announce their coins on different platforms where everyone can see them.
Nevertheless, it is necessary to analyze and look for the history and regularity of the entrepreneur, so as not to invest in the wrong place.