Before you trade in crypto currency you must Do Research Fundamental Analyze. After You Know Fundamental Analyze, you can choose your crypto and trade it.
The Utility & Use-case
Ask yourself: What is the purpose of this cryptocurrency? Does it solve a real problem or greatly improve on an existing technology? Will the world adopt its use-case?
A project’s likelihood of success is directly related to whether its technology/use-case is something that people and the crypto ecosystem actually wants and needs.
Market Cap
Market cap (market capitalisation) is a very useful indicator of the stability and growth potential of a cryptocurrency.
It is calculated by multiplying the current price of a coin with the total number of coins in circulation.
In general, the larger the market cap (in comparison to other coins), the safer/lower the risk-reward profile of the investment.
- Small MarketCap : $300M-$2B
- Mid MarketCap: $2-10B
- Large MarketCap: $10B+
The Community
If a cryptocurrency has real potential, it will likely have a group of people it serves, and thus a solid community around it.
The community (miners, developers, supporters and potential users) add value to a coin by adopting its use-case and increasing its overall legitimacy and popularity.
Social media sites like Twitter are a good place to assess community presence. Most legit projects have strong communities in online forums like Reddit, Telegram and Discord. Check out our article on how to do your own research in crypto for more information.
The Team (developers, advisors, partnerships)
Given the lack of financial history & data of many cryptocurrencies, assessing the core leadership team, the developers, the advisors will play a big role in your decision to invest.
The credibility and the experience of the team behind a project is crucial, and team members should have a solid track record in the industry.
Partnerships with other companies, banks and institutions are also a good indicator of how much potential a crypto has to succeed over its competitors.
The Website, White Paper & Track Record
Not only should the website be well put together and functional, but it should openly share information about the people behind the project.
Additionally, despite a coin’s ‘white paper’ often being technical, it should give a clear explanation of the coin’s utility, future prospects and underlying technology.
While bigger gains come from smaller, lesser-known coins, cryptocurrencies tend come and go. If a project has been around for a long time and has maintained its value, it may have real longevity
Rules My Trading :
✅ Buy When Price Fall
✅ Sell When Price Up
✅ Taking Profit At 5-20%
✅ ReBuy Accumulation That Your Convention In your crypto
Read More : What Crypto Do You Buy Today ?