in the crypto market, more than 6000 cryptocurrencies are registered in coinmarketcap.com website. but everyone want to invest in bitcoin because bitcoin is the largest and popular cryptocurrency. but other altcoins so much matter than bitcoin for investment
Evaluation
Bitcoin is an ideal currency to trade, but altcoins are much better for long-term investments. In today's article we are going to talk about the advantages of altcoins, coins with low face value and the ones that can generate incredible profits.
In the previous article we made a comparison between bitcoin and altcoin. Its purpose was to show the difference between these two classes of digital coins. Today we are going to talk specifically about altcoins and their benefits over bitcoin.
In the current cryptocurrency market, new altcoins appear every day, i.e. alternative currencies as the name suggests. These altcoins are mostly associated with different projects.
But why should I buy altcoins?
When looking at cryptocurrency, we should first think about whether we want to speculate or invest. The crypto market allows us to do both, as long as we are careful and knowledgeable in knowing what to do with each type of cryptocurrency.
For trading I always suggest more liquid currencies like bitcoin, ethereum etc. In terms of investment, my preference, I recommend altcoins, coins with low nominal value and which have great potential for appreciation.
So that we can understand which are the most promising currencies, let's analyze some important points:
- Project
- Market Cap (Market Value)
- ranking position
- Low face value (less than $1)
1. Project
In order for us to choose the best projects for us to invest our money we must read the cryptocurrency project plan. Of course, this is not always easy to do, as many of them are technical and written in English. However, we can learn about the premise of the project through several existing channels on the Internet that are related to the topic.
2. Market Cap
This is the most important point of my analysis. Let's be guided by bitcoin, the currency that has had the biggest market cap over the years. Analysis should always be concerned with two sets of information: ranking position and price. This way we can "obtain" the market's consent with respect to them and decide whether to invest or not.
To analyze the market cap of currencies, we can access the website www.coinmarketcap.com.
3. Ranking Position
a. absolute position
When we talk about absolute positioning we take into account the position with respect to 1500+ cryptocurrencies listed on the website http://www.coinmarketcap.com. This information helps to identify which ones are really strong in the whole picture. I usually choose the top 50 from the full ranking.
b. relative position
In this form of analysis, we attempted to establish within a sample extracted from absolute positions, those that are better classified within established criteria for market volume. Look at the picture below:
4. Low Nominal Value
As we can see in the figures above, within the criteria used, we have a list of 5 cryptocurrencies with very attractive prices. Thus, you only need to find out on which exchange these currencies are available to buy and hold, or in Portuguese, hold.
Conclusion
The cryptocurrency market is growing every day. More and more people are joining this new way of investing their money. We know that this market is still far from mature and therefore the risk is high. Make your investments sparingly and pay close attention when choosing where to allocate your resources. Variable income is always risky, with cryptocurrencies it is no different. But it can generate incredible profits.
