When choosing a cryptocurrency, attention should be paid to fundamental indicators such as market capitalization, trading volume, liquidity, coin supply (tokenomics), and the technological component of the project, including its practical utility and potential for development. It is also important to consider the development team, news that may affect prices, and historical data to assess volatility and risks.
Key financial indicators
Market Capitalization (Market Cap):
The total value of all coins in circulation, indicating the size and stability of the cryptocurrency. A high market cap often means greater stability but lower growth potential.
Trading Volume:
The number of coins sold over a certain period. High volume indicates liquidity and price stability, while low volume suggests less investor interest and potential volatility.
Liquidity:
How easily an asset can be bought or sold without significantly changing its price. High liquidity helps avoid sharp price fluctuations.
Circulating Supply:
The number of coins available on the market. It's important to compare this with the maximum supply to assess future inflation.
Tokenomics:
Analysis of the structure of creation, distribution, and usage of tokens. It is important to avoid projects with continuous coin issuance or a large concentration of tokens among a small group of individuals.
Other important aspects
Fundamental value and technologies:
Understanding what practical benefits the project brings and on which blockchain it operates helps assess its long-term potential.
Development team:
The experience and reputation of the team can be crucial for the project's success.
News and global events:
External factors, such as economic news, political decisions, and trends on social media, can significantly impact prices.
Historical data and volatility:
Analyzing past price fluctuations helps assess investment risks and identify market trends.
