First cryptocurrency

How to pick your first coin when investing in cryptocurrencies.

By Dadas992 | Dada's corner | 28 Aug 2021


A lot of people is felling how the cryptomarket is making millionaires everywhere, but some people is overload with a lot of projects and opinions over a lot of folk look for opinions in YouTube being paying attention in this new technology since 2014 a recognize my self that is overwhelming.

So in this post I will give you some clue keys to look in order to understand a project if you fell the way to DYOR (do your own research).

  • Supply: In crypto there is different kind of supply cap supply, inflationary supply and deflationary supply 

Cap supply: is a number stablish of coin doesn't change is more stable, example Bitcoin

Inflationary supply: the number of tokens increase day by day. Example Dogecoin.

Deflationary supply the number of tokens decrease by day Example Ethereum.

  • Market cap: you can check this metrics in coin market cap or coin Geko and indicate the amount of money the project you looking at has raised over time, smaller the market cap is; more upside will see in the future.
  • Note market cap and supply are tied together if my market cap is 1million and I have 10 token in circulation is equal to 100 k per token, but if I have 100 tokens it will be equal to a 10k per token.
  • Ranking: is always good to look at projets that are in the top 100 that will give you more confidence in the team and the road map. 
  • History: look back on price action is always good it will give you and idea of how much a project can increase in price.
  • Btc pair: why is BTC pair important? Bitcoin move the market as Btc increase other tokens too, the reason is because their couple. If price of BTC is 50 k and the BTC -ETH pair is 0.1 BTC per ETH means ETH is at 5k, now let's say in 5 years BTC is at 1 million dollars and ETH is at 20 k by history we know that ETH can equal 0.1 BTC that is 100k 
  • Read what is the project about: look for what is the project created for and if the team is working check in YT if influencers and people is talking about the protect, follow the protect on Twitter see when was their last post because if they post 3 years ago the project may be dead and you found out after you buy.
  • Look for hack: Crypto is by far perfect but is growing so is opportunities but bad news can move the price down (time to buy).
  • Look for good protects nobody is talking about. 
  • And Last but not least when the market is green look for tokens that are in the red, don't buy the green.

 

Check my other article over the biggest catalyst for DeFi.

https://www.publish0x.com/dadas-corner/nfts-the-biggest-catalyst-for-defi-xelegoy

 

 

 

 

 

 

 

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Dadas992
Dadas992

Cryptofreaks my protect is growing in enjing platform


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