The cryptocurrency market recently differs significantly from what it was in previous years.

The number of new currencies being launched daily exceeds multiples of what the market was four years ago.

Therefore, choosing the right currency has become more complicated, and that's why I share with you 5 tips that I hope will be helpful.

Define your investment strategy

Determining the investment strategy before selecting the currency is very important. For example, if you are looking for currencies for quick profits, you will turn to the Memes sectors, but if you are looking for currencies for long-term profits, you will turn to large projects and currencies in the market like Bitcoin.

Defining your strategy for the currency you wish to buy will determine how you will deal with the currency, how you analyze it, and when you expect its profits.

Know the field of the currency you wish to buy into

The cryptocurrency market now contains significantly diverse fields and sectors.

The market is no longer what it used to be, where Bitcoin's rise was positive for all sectors, but you may see a rise in a certain sector amid Bitcoin's decline, and vice versa.
Therefore, you should study the sector in which your currency operates, and whether it has sustainability in the market.

Such information can be extracted from research tools like DeFiLlama, by looking into this sector and its total TVL, and the profit generated by the projects within it.

All these indicators will help you study the field to which your currency belongs, and will give you a picture on which you can build your future expectations for the currency and the project.

Is the project you are investing in profitable?

This advice is a continuation of the previous advice.
If your project is in a good sector, that doesn't mean the project will benefit from that 100%.

You should study your project's position within this sector. Does your project have a large share of this sector? Is the project profitable from the protocol's users?
These indicators are very important to clearly determine the project's future.

Monitor the currency's liquidity

Studying the liquidity position of the currency is very important.
In the end, the cryptocurrency market and any financial market based on liquidity. It won't help you if your currency has a market value of $100 million but only $100,000 in liquidity.

You can find such information, and on which platform the currency is listed, through tools like CoinMarketCap.

When you enter the currency page, you will see the trading volume over the past 24 hours, liquidity, and the platforms on which the currency is listed.

Search for public opinion about the currency

One important thing that technical analysis may overlook is the public opinion about the currency or project.
In the cryptocurrency market, public opinion may outweigh all analyses and studies.

It is normal to see a currency with a weak project and poor numbers but has a large following, and based on this popularity, the currency's price rises.

Therefore, you should study the public opinion about the currency, and you can do this by searching for related content on platforms like X, Binance Square, YouTube, and others.