the popularity of cryptocurrency increasing in the world day by day. in this investment, it has higher return with higher risk as compared to traditional invest. There are many cryptocurrencies available for investment in the market. That's why it is important which cryptocurrency is good for investment.
When one talks about cryptocurrency, the first word that comes to mind is bitcoin. Because bitcoin is the largest, oldest and most popular cryptocurrency in the world. This is why bitcoin has become synonymous with cryptocurrency. But nowadays many cryptocurrencies are beating bitcoin. Like Dogecoin, Ethereum, Ripple, Polygon and many others. So it is difficult to choose which cryptocurrency is best for investment.
Today I am sharing with you some of the factors that one should keep in mind while investing in cryptocurrency.
Market cap and total circulation
Many experts agree that when investing in cryptocurrencies, it is important to research their market cap and total circulation.
market cap means how many coins are invest this market and circulation means how many coin are available in this market.
The total number of bitcoins in the market is 21 million, i.e. no more coins can be made for it. If the number of coins is limited then obviously the demand will be high. And the higher the demand, the higher their price.
talking about Dogecoin, it is a meme coin that can be made as much as you want. This number of coins is unlimited.
Technology
Technology plays an important role in cryptocurrency.
For example, Ethereum has many types of transactions that are used in the banking and financial sectors.
So this type of technology has risks. If someone develops better than them then its importance becomes more or less, so it needs to be monitored.
Price fluctuations
Research the price of cryptocurrency. You will get to know a lot about him.
Look at the price over the past few years to see if it could be a good investment.
People involved in cryptocurrency
The people associated with it are very important in any crypto. The success of one's team depends on the team leader and the people on that team
You would know how Dogecoin, which is a meme coin, increased its value because of Elon Musk's tweet. By the way, the experts are to be believed, then one should not invest in Meme Coin because it can be a fraud.
Therefore, you should keep in mind the people associated with the cryptocurrency you are going to invest in. You should also check whether the founder himself has invested in his project.
White paper
Successful promotion requires initial coin offerings (ICOs) to bring a white paper. It contains information about the coin's purpose, technique, working method and overall vision. Experts agree that one should not invest in any cryptocurrency without reading the white paper. It covers all the basics related to coin. The more white papers you read, the better cryptocurrencies you will be able to choose.
Community
For any cryptocurrency, its followers play an important role. When investing, choose a cryptocurrency that is well supported by the community. These are signs of people's interest and trust in that coin.
Also, the social media handle of that cryptocurrency should also be checked. Crypto That Has a Good Community Will Have More Value
