If you want to make money easily in the crypto market, first you have to understand the type of business you are venturing into. It’s not all about just buying and holding crypto coins, there are certain factors you need to consider before you buy any crypto.
What are they?
- Market Capitalization
- 24 Hour market capitalization
- Total coin supply
- Circulation supply
- Type of crypto
Market capitalization – For a coin to be considered to be good, it must have a high market capitalization. Higher market capitalization symbolizes liquidity and that the coin is heavily adopted and that it is likely to be more successful in the near future.
24 Hour market capitalization – it also play a pivotal role as it shows the amount of transactions completed and coins traded, so if it is higher it means that coin can be used in day to day running of business.
Total coin supply – For a coin to be successful it has to be on demand which means if there is too much supply then demand will be less and its price will likely not move that much and there will be liquidity issues, but that depend with the coin type of coin. We will look at that on our last point.
Circulation supply – the number of coins in supply determines the price projections and movement. The coins doesn’t have to be scattered all over, if there is higher coin supply then those coins has to be released bit by bit then when the price is high enough then it will be fine to release them strategically and safeguard the value.
Type of crypto – crypto currency comes in two, there are stable coins and non-stable coins. The supply of stable coins doesn’t matter since the coins in supply are backed and they are not volatile. Its price is pegged at a certain price and it almost stagnant but on non-stable coins coin supply matters most.
So know your markets before you invest because you might buy a stable coin expecting to make profit yet it’s not volatile.
