Cryptocurrency is the future of finance and many other sectors. The cost of crypto-currencies grows day by day, and there are more companies that will accept them for payment. For example, if you want to go to online games or poker rooms, then you can do it only with cryptocurrencies. There are also building sites where goods are sold directly for virtual money. On this basis, investment in digital currencies is one of the most promising areas for development. If you want to invest in cryptocurrencies. In this article, I will share a guide with you on how you could choose a crypto coin like a Stepn Token for trading.
1 – Market Capitalization
Market capitalization is a number that shows the value of a cryptocurrency. It is calculated by multiplying the total number of coins by the price per coin. Market capitalization has been used for years as an indicator of a company’s popularity and power, but now it applies to crypto-currencies as well. In addition, it can’t be argued that this indicator tells us how much money will be invested in a certain currency.
2 – The Chart
The chart shows the growth rate and fall of all currencies over time. Here we see whether or not there was an increase or decrease throughout virtual money history. For example, if you want to trade in bitcoin and invest in Ethereum and Ripple (which I’ll talk about later), then you need to see their charts. If you see that the graph has a negative trend, then it would be better not to invest in them.
3 – New Currencies
This indicator tells us about new currencies like gigecoin, poocoin stock and SOL coin entering the market and how much they can grow. For example, this year IOTA has grown by 150 percent because it’s one of the newest cryptocurrencies on the market and still does not have enough investments. So we should pay attention to what coins come into the market and how strongly they will affect our investment portfolio.
4 – Transaction Volume
Transaction volume is a figure that shows the amount of money moving in and out of certain coins in 24 hours (or other periods depending on which currency we’re talking about). For this, you can go to any exchange like Cryptopia exchange and get these stats. The higher the transaction volume, the more money is invested in a certain cryptocurrency. So, if you want to trade and invest, then choose currencies with high transaction volumes, such as DigiByte (458,841 transactions per day), Golem (164,406), or Steemit (226,565).
5 – The Number Of Investors
A number of investors show how many people are already investing in a particular crypto-currency. For example, for this indicator, we can check out Bitcoins. You’ll see that there are about 10 million users worldwide who have digital wallets where they store their currency’s foreign exchange liquidity. These figures also show whether it’s worth buying a cryptocurrency or not. But do not think that 10 million users automatically mean success for a currency. In addition to the number of investors, you should also look at the number of active users.
6 – Social Media
This indicator reflects how people are talking about a certain currency on social media. For example, if many people are talking positively about Ethereum on Twitter, this might indicate that the currency is worth investing in. But don’t forget that not everything on the internet is true, so do your own research before investing in any currency.
7 – Price Development
The price development is a graph that shows how a particular coin’s price changes over time. This information can be very useful when you’re trying to decide whether or not to invest in a currency. For example, if you see that the price has been decreasing for some time, then it could be a good idea to invest in it. But do not forget that this information is very volatile and can change at any time.
8 – Ranking Charts
This indicator shows the ranking of currencies in accordance with their capitalization or price per coin (which I already mentioned when talking about market capitalization). For example, if you want to trade in Ripple, then you need to see where it stands compared to other cryptocurrencies. If you see that its share exceeds XRP’s share by 50 percent, then go ahead and invest.
Here are the pro tips for choosing a crypto coin. If you still need any guidance you can follow up with the worldcryptoupdate for more information.