How to Choose the Right Cryptocurrency to Invest by following 5 Steps/Rules.
What cryptoccurency to invest to?
What altcoin to buy?
Read the whitepaper of the coin you are about to invest. Not only ICO’s have whitepapers, every signle coin out there has a whitepaper that explains what they are aiming to do and how and when they plan to execute it. It is essential to check the problem they set out to solve, the solution they have come up with, the team behind the product, and their roadmap to see in which stage they are at the moment. All those are the basics that you need to know before you invest in any cryptocurrency.
Check the circulating supply of the coin and its price, or on other words the cryptocurency’s market capitalization. Be carefull on your calculations because some coins have partially circulating coins and not the full amount is tradable
Rule #3 Coin liquidity and volume
Check the trading volume of a coin on the last 24 hours, looking at coinmarket.com is xpressed in USC and BTC. The higher 24h volume reflects a more established coin with a solid base, at least one functioning exchange (where the volume comes from) and perceived value by the trading community.
It is extremely important that you check developers activity. The truth is – anyone who knows how to code can design their own cryptocurrency. And that, unfortunately, comes with a lot of scams. The majority of successful, or promising, coins are announced on forums and through a public software repository such as GitHub.
Last but not least check the social presence of the cryptocurrency. It is extremely importand that the cryptocurrency you are looking to invest for long or short term to have a good base of supporters. Look at the social media, but don’t be fooled by facebook and twitter numbers, check the conversation about the cryptoccurency on reddit, or Bitcointalk. There you can find the true community behind a coin and to see if it has a strong support. A coin with strong support has way more chances on succeeding in the market.