Factor #1. Cryptocurrency price should not exceed $1 per coin
There are a number of explanations for this factor.
First, the value of a coin around a dollar gives a subjective feeling of cheapness. This attracts novice investors who do not have large sums to invest.
Second, the less a cryptocurrency is worth, the more easily its price increases two or three times, or even much more, especially when there is favorable news.
Factor #2: The activity of the development team
Every cryptocurrency has its own website. Don’t be lazy to go through it from cover to cover. Evaluate with what probability the developers will succeed in further promoting their coin, what prospects it may have in front of it.
In addition, almost all developers post news about their work on social networks. The most popular service of microblogging is Twitter.
This factor has its exceptions. For example, the creator of Dogecoin cryptocurrency stopped its participation in this project, software updates were not issued for several months, which did not prevent the market capitalization of Dogecoin to exceed $ 1 billion.
Factor #3. How interesting the cryptocurrency is to users
The best way to get this kind of information is to use the social news site Reddit. By monitoring it, you can find out if the cryptocurrency you are considering for investment has an active community and how large it is.
As a rule, the cryptocurrency communities on Reddit include enthusiasts, early adopters, and innovators. Despite their small number, their activity to promote cryptocurrency is sometimes just off the charts. Accordingly, the larger and more active the “support group”, the more likely that demand for this cryptocurrency will grow.
Factor #4. Volume of circulating assets
The greatest prospects have altcoins whose volume of working capital is close to the maximum volume of crypto coins in circulation.
Here it’s simple – the more cryptocurrency units in circulation and the smaller the total number of crypto coins, the higher the probability that its price will rise in the future.
Factor #5. Trading volume and price chart
It is not at all unreasonable to know the cryptocurrency’s liquidity indicators and examine its price chart for the entire available period.
If the trading volume and price on the chart are showing growth, it means that the altcoin you have chosen has excellent prospects to continue to rise in value.
However, it is very important that such dynamics are stable over a long period of time, otherwise there is a high probability of getting caught in a “Pump and Dump” cryptocurrency fraud scheme.
