Essential Factors for Analyzing Altcoins
Investing in altcoins requires more than just looking at prices. It is necessary to consider various factors to make good decisions.
1. Altcoin Project
Analyze the team, use cases, innovation, and adoption. Without a solid purpose, the project may fail.
2. Influence of Bitcoin
BTC impacts the entire market. When it rises, some altcoins appreciate, but others lose value. The BTC dominance index indicates this trend.
3. Coin Supply
The circulating and total supply influences the price. Altcoins with high issuance may struggle to appreciate.
4. Whale Movements
Large investors control the market. If they accumulate, it may indicate a rise; if they sell, a decline.
5. Dollar Exchange Rate
The crypto market is dollarized. A high dollar makes investments more expensive for Brazilians; a low dollar may reduce gains when converting to real.
Conclusion
A complete analysis involves the project, supply, BTC dominance, whale movements, and exchange rates. Investing without this data increases risks.
