With the development of the crypto industry, it becomes more difficult for users to choose promising coins. More often there are crypto-currencies, which differ from bitcoin and etherium, but it is not always clear whether to buy them. Do not add certainty and hundreds of ICO tokens. How to compare the Crypto-currency in this variety and what are the criteria for this?
The process of selecting the most profitable crypto currency today is a thorough comparative analysis.
You have to choose at least two stages. At the first, the investor selects from the hundreds of crypto-currencies several dozen of those that he considers promising. On the second - from several tens selects the currencies corresponding to its strategy.
This requires a well-designed selection scheme, which the investor will adhere to, until he consciously decides to change it due to some objective reasons - for example, with a change of strategy or a radical change in the situation on kriptornke.
Criteria can be equally important for different investment strategies. But it may be that one criterion will be more important for a long-term investor, and another for a short-term investor, so it's always necessary to compare crypto-currencies with a look at the strategy.
Comparison of Crypto-currency: Infrastructure Criteria
* Time of existence. The longer a crypto currency exists, the less likely it will collapse in the future. For long-term investors, according to this criterion, the most reliable options will be currencies that are steadily growing or following the market for at least two years. For short-term investors, the newly emerged currencies are also suitable. But they, too, should be more wary of new currencies, since their next fall could end in collapse with a greater probability than a decline in the long-standing currency.
* News background. The tone of the news background is not taken from nowhere: both positive and negative backgrounds have prerequisites, although sometimes not as significant as shown in the news. In addition, the mood in the media affects the users of the network, and the negative news background usually leads to a decrease in the crypto currency, and the positive - to growth. The background is important primarily for short-term investors. However, if the crypto currency is surrounded by bad rumors for a few months - a long-term investor should also bypass it.
* The developer and his attention to his product. It is worth paying attention to the developer, and the PR-campaign. A developer who pays attention to a product, modernizes it, publishes news, has an active site and communicates with users, creates its own prerequisites for the growth of the network and the growth of the currency exchange rate. A competent PR-campaign will increase the effectiveness of these actions. Such a product is promising for a long-term and medium-term investor, as it is likely to grow steadily. Active PR in the network, but the vagueness of the developer's plans can provoke sharp jumps and downs of the course. Short-term investors after each wave of PR can get a good income. The work of the developer in silence can provoke the growth of the crypto currency in the future - if it is competent and capable of a quality update of the product. But little-known developers and foggy PR - not the best indicators for any investors.
Comparison of Crypto-Currency: Market Criteria
* Trading volume. Shows how much savings people are willing to invest in the crypto currency. The higher the volume of trades - the higher the volume of investments, hence, the higher the confidence of users in the crypto currency.
* Total capitalization. If there are few coins issued, users are active, and capitalization is small - crypto currency, is likely to grow. If the coins are small, the network is active and the capitalization is high, then the coin is either valuable in itself (and promising for the long term), or the market is overheated (and short-term investors can play on a decline). If there are many coins and / or the network is inactive, the Crypto currency is hardly promising.
* Volatility. Indicates the best strategy for using crypto currency. Low volatility is suitable for long-term strategies, high - for short-term ones. Do not apply the test for stablykoyinov. Based on traditional assets of stable value, they can not be too a priori too volatile.
* Correlation with leading currencies. Often crypto-currencies follow bitcoin or etherium. But there are also "independent" ones. The less the rate of the crypto currency correlates with the rate of the leading ones, the sooner the market will perceive it as an alternative to the leading ones. Accordingly, the more chances it has in the future. To pay attention to such a coin is advisable for long-term investors, since it is likely to grow slowly but steadily.
In the article the main parameters of the choice of investors' crypto-currency are given, but there are still many other important moments for a qualitative result.
Information for you kindly provided resource cryptonet.biz
