There are so many coins on the market some of them are well established and re already being used but there are new currencies being given birth to. Not all coins are worthy to invest in as some of them are scam coins, they are just created and sold out to people yet their value is useless so you have to be extra careful when investing in cryptocurrencies so that you don't fall prey to those scammers.
The factors which we are going to look at doesn't determine if the coin is a worthless coin or not but they determine the buying power and value of that certain coin and also they determine ts future.
The first thing to consider before you invest in crypto coins just check the history of the company behind and if that coin is listed on the coin market cap or any exchange platform but all this doesn't mean it is worth it but it gives a green light and you will have a path to start looking upon.
Factors which determine.
- Market Capitalization
- 24 Hour Volume
- Coin Supply
Market Capitalization
It plays a pivotal role on the market. It show how much money is circulating on the market and that determines liquidity of the coin. If a coin is liquid then there are higher chances of making money with that coin. It also shows that the coin is well recognized and adopted by the people. Who would want to buy a coin which has no demand? Of-course no1 because it will be a waste of money.
24 Hour Volume
This is the number of coins being traded or the value of coins traded on daily basis, if the 24 hour volume is high there are higher chances of reaching a higher market capitalization since it is determined by the day to day core of the business. So this volume is very important, if a coin has higher 24 Volume then it is something worthy to look at.
Coin Supply
Lastly this factor determines aswel and it is a critical feature. In the business its all about supply and demand that the economics of the business. If the supply is too much then demand will be low but if supply is low then demand will be high and there are higher chances that the coins will rise, but there are other coins with higher supply which are good but that will depend on the type of coin, its purpose on the market.
