Searching for the best crypto projects is difficult and entering into a digital currency without knowing the origin of the company and the project followed, and those in charge are considered stupid. So today we will talk about how to search for gems in digital currencies. Let’s see what crypto gems are and how we know the details of each digital currency
Before I start with the details, did you know that you can create a currency in less than a minute and at a cost of $1,000! Therefore, all currencies are scam and shtcoin until proven otherwise.
Let’s start: First you need the basic tools: -
CoinmarketCap — CoinGecko -
A group of platforms such as: Binance, Kucoin, Gate, Huobi, Bitmart
Social Software: Telegram, Discord, Linkedin
Fundamental analysis of digital currency
If you think you have found or read the recommendation for a valuable coin, a quick basic analysis of this digital currency in about half an hour will identify the obvious bad signs or positive signs, the analysis includes the following
Market value: It is often divided into four categories:
Large: over $10 billion
Medium: 10 billion to 1 billion
Small: 1 billion to 100 million
Micro: 100 million or less
An important point in cryptocurrency trading, you must know the project well before entering it. You should dedicate a whole day to read everything about the currency before investing in digital currencies.
Important points in the market cap that you should pay attention to
The initial market value, which is at the beginning of the descent of the currency to the market. If the initial market value is very large and the project does not have huge potential, then it is possible that the price will increase tenfold as you expect because it is already high, meaning as if it is something with 10,000 inside and a value of 1,000 Example: A project that came down and its market value is 100 million and the project is still incomplete, so it is unlikely that it will go up all the time to 1 billion, because it takes a longer time to maintain the high starting value, and then jump to the top. I hope you understand this point.
Find Market Cap at Coinmarketcap
Supply: The number of currencies in the market. It is knowing the maximum supply (the maximum amount of currencies that will exist in the future) and whether it has a maximum limit or is unlimited. Also, some currencies have a monthly lock raised for a period of months or a year. It is important to know this information because it is possible to buy and not rise because they lift the lock. You will see currencies with good projects, but the number of supply and the total is never in line with the current price for them, the difference is very big (bad sign ) Example: Supply Coin 60 Million, Total 1 Billion, Price $2! While 2 dollars is assumed when the market cap has close to 2 billion. The difference is big and there is a big risk
Open the Coinmarketcap website from Google and search for any currency you want, for example, search for Bitcoin, you will find everything about it inside.
24 hour trading volume
This displays the liquidity of the currency, and the quantity traded per day in the platforms. The higher the liquidity, the easier it is to execute orders (sell or buy). A currency that can give you several rings and great heights, but when you try to sell it, you can’t and come down close to the entry price! Because the platform has no liquidity. It was a failed choice, although the project is good. You can do a quick calculation to find out the volume ratio. Divide the 24 hour volume by the market value and multiply it by 100. (24 hour volume / market cap) * 100. The ideal ratio is approximately 10% per day or more is excellent, of course Try on different days, better to give you a more accurate result.
Explorers: explorer at coinmarketcap
Sites like Google for coins. Allows you to access transaction details related to a specific wallet address, including the amount transacted, sender and receiver, transaction status, on any blockchain and useful information (we break it down in two dimensions)
White Paper: A well-known and well-written document that explains a problem and offers a solution. Most of the encrypted currencies have a white paper, if the currency and its paper is not present, this is a bad sign as well as it is not copied, copy from paragraphs and put it in Google if results come out, this may be a scam because the team did not bother writing its paper.
Currency distribution: a respectable currency and a good team is usually setting up a page to distribute and disclose it to investors and the public. You can find it on their official website or their accounts. If I find it for me, I consider it a bad sign because you need answers to several questions such as: -
Are the available coins prepared in advance or are they constantly being mined?
What is a rolling offer and how is it distributed on pre-sale & airdrop?
What is their model required me to reach the maximum width?
Is the currency deflationary or is supply closed or unlimited?
Team coins unlocked? for how long? Respected team that puts advance answers
Website: Good Always take a look at the projects website. Of course, a well-designed and good-looking website is not a requirement for a successful project, but displaying a bad website is often considered unattractive.
The team: Personally, I am interested in that the team is present in public or has previous projects. They also have personal accounts on Twitter or LinkedIn and communicate with people, because they are the opposite of the unknown, they have a social image that they fear, of course, what is the condition that the project is a failure. Satoshi, the creator of Bitcoin, is not yet known. But it is better than an unknown person who may be set up and no one knows who he is.
The currency community: It is also a very important part for me, the presence of a currency community in Telegram and Twitter, and how the team deals with responses to them, in a professional manner, or they are late and do not interact
In the end, this is the summary of how to search for gems in digital currencies.
