By Jide Idowu @ usethebitcoin.com
The rate of interest in cryptocurrency has increased in the previous years and it shows no sign of decreasing in 2018. However, it is important to note that today, lots of newbies are finding it difficult to get the right cryptocurrency to invest in 2018 – everyone has passed through this, so you shouldn’t worry! This is why this article is here to assist you in choosing the right one.
So are you in search for the right cryptocurrency to invest in? Do you want to make the right choice of crypto investment in 2018? These questions will be answered when you read through.
To predict which cryptocurrency is worth your investment, here are vital measures that you need to consider.
Choosing the Right Crypto-coin
Many out there, now, know that one of the best places to invest in is in the crypto-market. Also, it is necessary to note that the best place to track the progress of every digital currency is through cryptocurrency and this can be done by analyzing the 24hrs volume, the liquidity of the cryptocurrency, the market capitalization, the activities of the developer, and the market price.
Keeping tabs with all the features listed above will make you go with the right choice, and know more about the inception of a new altcoin and whether to trade in it. You can also make use of CoinMarketCap to help you choose the best. Let’s go into detail.
In a particular digital currency or crypto coin, analyzing the value of trades that have been performed per day will help you decide if the coin is worth investing or not. However, this value is stated as USC and BTC. If the value of trades per day is high, it gives you the notion of how strong the coin is.It is necessary to pick a digital coin with a minimum trade value of about 10,000 USD per day. This establishes and shows the level of trust people have to invest in it. It is very rare for successful investors to buy a particular digital coin with less trading volume. So don’t risk it!
The liquidity of the cryptocurrency
You can measure the liquidity of a cryptocurrency through its volume percentage and BTC volume. The liquid asset of a cryptocurrency is aligned with a term called “Wash Trading” which can occur at higher or lower volume of a digital currency. This can be due to the fact that some digital currencies have lower BTC volume, which implies that if a few amounts of a coin is bought, it could make the market very detrimental to you. To avert this situation, you need to use exchanges with lower volume.
One caution you need to know is that you should avoid exchanges that usually have their volume inflated so as to attract more traders. When this occurs with a digital currency or exchange, you have to take a critical analysis on the increase in volume without an increase in price.
The present market capitalization and price
The market capitalization of a coin can be estimated by multiplying the number of coins that are on-ground by the market price at present. Although, this should be done to only mined digital coins.
Subsequently, you may note that most crypto-coins usually increase the number of coins issued so as to attract more traders to themselves. Due to this, you need to know the real value of a coin before opting for it.
The present price of a coin is not really an indicator of its real value and it shouldn’t decide whether you should invest in it. However, what you should be looking at is the future and technical goals that the particular cryptocurrency has – therefore, don’t be deceived by the low price of a crypto-coin if you want to invest in it.
The activities of the developer
This measure is one of the vital points to ponder upon. Anyone who is a whiz in software development (website coding and design) can produce his/her own cryptocurrency without much ado. However, with this, you can see that it is possible to be scammed. This is due to the fact that most of these coins (successful and unsuccessful ones) announce their coins on various platforms for everyone to take note of.
Nevertheless, it is necessary for you to analyze and search for the history and the regularity of the developer so as to not invest in the wrong place.
The crypto world today may be a loose place to some people, but if you are ‘very’ careful, you won’t go into risk. And, as a rule of thumb, you need to think about investing in things that are substantial. Although, the crypto-world may be a good place to do that, even if it is not safe. But with the steps identified in this article, you will be able to trade on the right crypto-coins in 2018.