For some people crypto is considered a risky and frightening investment, but for risk takers, crypto is seen as a challenging and promising instrument.
Until now there are only two cryptocurrencies that are considered superior or bluechip crypto, namely Bitcoin and Ether, these two cryptos are considered the safest as investments for both beginners and professionals. However, apart from the choice of these two cryptos, there are still thousands of cryptos. Therefore, to choose crypto as an investment other than Bitcoin and Ether, several criteria are needed to assess a crypto, especially to evaluate whether the fundamental value of crypto is in accordance with its market price. For ease of evaluation/assessment, I will group them into three phases, including:
1. Evaluating the Criteria of a Crypto
1.1. Uses of Crypto
The purpose and utility of blockchain tokens must be clear, for more details read the whitepaper carefully.
1.2. Tokenomics
Tokenomics or token economics, related to the number of tokens, distribution, maximum supply, circulating supply, and also pay attention to the vesting schedule.
1.3. Project Activity
As we know big crypto projects like Ethereum, Solana and Cardano always show their activities through various media,
So we need to evaluate the activity of the project both on: Developer activity, Community on social media.
1.4. Number of Users
The number of users can be used as a measuring tool to determine the feasibility of a cryptocurrency project, the number of users and activity will be very important information during a bear market. We can check the activity and number of crypto users through unique transactions, unique crypto addresses and unique crypto wallet activities. To find data on the number of crypto project users you can use the sites: Dune.com and Gokustats.xyz
1.5. Comparing with Competition
When evaluating a crypto we need to compare it with similar crypto or similar mechanism systems PoS is compared to PoS and PoW is compared to PoW.
2. Metrics of a Cryptocurrency
2.1 Market Capitalization
Market Capitalization or market cap is a measure of the market value of a crypto which is calculated by means of the price of the crypto multiplied by the amount of crypto in circulation. A large crypto marketcap will be more stable in price than a smaller marketcap. We can also group market cap into three categories, namely large cap, mid cap, and low cap.
2.2. Liquidity and Volume
Liquidity metrics and trading volume will affect price fluctuations. The lower the trading volume and liquidity, the more difficult it will be to buy or sell crypto, usually it is only listed on small crypto exchanges, many investors are not interested and the risk is higher.
3. Determining the Best Time to Buy Crypto
Determining the best time or when is the right time to buy crypto is a question that is difficult to answer with certainty. However, investors can pay attention to the trend of price movements of a crypto for at least the last seven days, whether it is stagnant, falling or rising, and what influences this price.
Until now there are only two cryptocurrencies that are considered superior or bluechip crypto, namely Bitcoin and Ether, these two cryptos are considered the safest as investments for both beginners and professionals. However, apart from the choice of these two cryptos, there are still thousands of cryptos. Therefore, to choose crypto as an investment other than Bitcoin and Ether, several criteria are needed to assess a crypto, especially to evaluate whether the fundamental value of crypto is in accordance with its market price. For ease of evaluation/assessment, I will group them into three phases, including:
1. Evaluating the Criteria of a Crypto
1.1. Uses of Crypto
The purpose and utility of blockchain tokens must be clear, for more details read the whitepaper carefully.
1.2. Tokenomics
Tokenomics or token economics, related to the number of tokens, distribution, maximum supply, circulating supply, and also pay attention to the vesting schedule.
1.3. Project Activity
As we know big crypto projects like Ethereum, Solana and Cardano always show their activities through various media,
So we need to evaluate the activity of the project both on: Developer activity, Community on social media.
1.4. Number of Users
The number of users can be used as a measuring tool to determine the feasibility of a cryptocurrency project, the number of users and activity will be very important information during a bear market. We can check the activity and number of crypto users through unique transactions, unique crypto addresses and unique crypto wallet activities. To find data on the number of crypto project users you can use the sites: Dune.com and Gokustats.xyz
1.5. Comparing with Competition
When evaluating a crypto we need to compare it with similar crypto or similar mechanism systems PoS is compared to PoS and PoW is compared to PoW.
2. Metrics of a Cryptocurrency
2.1 Market Capitalization
Market Capitalization or market cap is a measure of the market value of a crypto which is calculated by means of the price of the crypto multiplied by the amount of crypto in circulation. A large crypto marketcap will be more stable in price than a smaller marketcap. We can also group market cap into three categories, namely large cap, mid cap, and low cap.
2.2. Liquidity and Volume
Liquidity metrics and trading volume will affect price fluctuations. The lower the trading volume and liquidity, the more difficult it will be to buy or sell crypto, usually it is only listed on small crypto exchanges, many investors are not interested and the risk is higher.
3. Determining the Best Time to Buy Crypto
Determining the best time or when is the right time to buy crypto is a question that is difficult to answer with certainty. However, investors can pay attention to the trend of price movements of a crypto for at least the last seven days, whether it is stagnant, falling or rising, and what influences this price.
