The main rule of experienced crypto investors is to enter the market when people massively leave it and to leave the market when they buy crypto massively. Now that the market is living through a downtrend, it is the right time to add valuable and promising digital assets to your portfolio. In this article, we will talk about how to pick crypto for investment and where to buy it.
Things to Consider when Choosing Crypto
Here are some factors to pay attention to:
- price of cryptocurrencies and charts;
- trade volume;
- market cap crypto;
- the reputation of a project;
- use cases;
- partners;
- social networks.
Suppose you go through these parameters and see that the project is actively developing and has significant capitalisation and credibility. In that case, that is a sign that the project is worth investing in. An important factor here is use cases. If the project is used by other companies or offers some valuable technology, it will expand its user base and develop, so the price for its coin will also grow.
An important paragraph is the market cap. It is the total value of all the coins in circulation. It is calculated by multiplying the number I coins released by the current rate. The more the market cap, the higher ranking of the coin in ratings. Another factor that should be mentioned is trade volume. It indicates the sum of all transactions done with the coins during some period (usually one day) represented in dollars. If the coin has a large market cap and significant trade volume, that means it is popular, and its price is high, and at the same time, it is actively traded on crypto exchanges, which means traders buy and sell it daily. The combination of market cap and trade volume reflects the level of the asset and helps you understand if it is worth buying or not. For example, some assets have large capitalisation but low trade volume, which means the coin is not actively traded and not very popular.
Where to Buy Promising Crypto?
We recommend using the WhiteBIT crypto platform. It offers relevant crypto rates live and charts for you to analyze how the rate changes. It also allows buying digital assets with fiat money and converting them back to fiat. WhiteBIT is highly secure and does its best to ensure users’ safety. To learn more about WhiteBIT trading, visit its blog.