What cryptocurrency are you thinking about buying? How much do you know about it? Essentially, the more you know, the easier it is to assess whether it is a good idea to invest in a coin. Go in blindly at your own risk.
Below, we’ll give you some tips that should help you assess which coin to buy.
A close-up of a person’s hands holding cryptocurrency coins.
Understand the World You’re Stepping Into
Before you can assess which cryptocurrency to buy, you need to know what it is first. When the first whitepaper was released back in 2009, there were plenty of people who presumed cryptocurrency would crash and burn in a matter of weeks. On the contrary, it flew.
Over the next few years, plenty more cryptocurrencies were added to the mix, complete with their own networks and communities. In 2024, cryptocurrency is about more than just finance. It’s an entire universe. This is exemplified by all the initiatives that have been launched to support blockchain and its users.
In 2014, for instance, the very first legally licenced Bitcoin casino was launched, allowing players to play games with their cryptocurrency. In 2024, the crypto casino has reached new heights, with around 500 operating worldwide, and millions of players staking BTC, ETH, SOL, and more every day.
This was something that wouldn’t have even been dreamed of back in 2009, but in 2024, it’s completely normal. And new initiatives are hitting the scene. You want to join a crypto casino? Sure. Need help from a crypto cybersecurity company? You got it. Want to go on vacation? Just pick from one of the many crypto-inclusive travel agencies.
As a new user of crypto, it’s important to learn as much as you can about the scene right now, as it can give you some much-needed context, information on which coins and areas are performing, and even some hints on where things might be heading.
Consider Market Cap and Liquidity.
Once you’ve done all that, you can start buying crypto. As you evaluate cryptocurrency’s potential, look out for an active development team and a clear, attainable vision. You will also want to find out about community and developer engagement on social media platforms and forums. A strong community can provide insights and innovation resilience to such projects. Past performance analysis plus updates also tell how the project has been responding so far.
Market capitalisation is also essential. That said, do not forget liquid indicators. More so, if you need a quick exit from your stake, there must be enough tokens in circulation to buy or sell them easily without any impediment. High liquidity is essential. The two together collectively give insights into how healthy the currency is financially and operationally.
And, by observing volume trends, you can tell when a cryptocurrency becomes popular or unpopular among people. It is also good practice to see how these cryptos respond whenever news and social media stories circulate – for example, the recent news about Sam Bankman-Fried and his sentence for fraud. Coin-specific news can cause rapid bull or bear runs as investors become excited or uneasy.
Technological Advancements and Roadmap Analysis
The idea behind every piece of technology is to be innovative. What makes this particular cryptocurrency unique? How does it differ from other solutions, or how does it improve on existing ones?
Find out if there is anything like a more scalable, secure, or new consensus mechanism that makes it the best.
A well-detailed roadmap with clear milestones is also essential in seeing the progress of the project and its commitment towards growth – you want to know the coin has a plan to grow. Growth = more value. You should also ask, is the technology adaptable enough, and can it still fit within the rapidly changing digital era? Does it advance quickly on its plan, and does it have a quick response time when faced with tech challenges? And more importantly, has the value increased, and what are the projections?
Whether it Integrates With Platforms Like iGaming
The value and relevance of a cryptocurrency with real-world integration are essential. The more connected to the masses, the more value potential it holds. For example, if a cryptocurrency effectively connects with iGaming – payments, a Bitcoin casino, play-to-earn gaming, the metaverse, etc – it is a sign of a diverse and practical utility.
Cryptocurrencies in iGaming enable fast and secure in-game purchasing or betting, improving the user experience by providing privacy and reducing transactional costs. You want to know if a cryptocurrency can actually do something and grow rather than heading for the cryptocurrency graveyard.
Top Coins 2024:
- Ripple (XRP)
- Solana (SOL)
- Bitcoin (BTC)
- Shiba Inu (SHIB)
- Jito (JTO)
Will you always accurately assess a cryptocurrency? No. And it is not even that you might not have analysed it correctly – cryptocurrency is volatile. But the more you know, the better position you are in.
