Experts explained where to look for interesting projects for investment, what criteria they must meet and named ways to assess the real value of assets
The opinions of experts may not coincide with the position of the editorial board. topplabs.org does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Some tokens have risen in price several times since the beginning of this year and brought investors a good profit. For example, Ethereum, the largest altcoin in terms of capitalization, has risen in price by 415% since January, the Binance Coin rate has grown by 1194% over the same period, and the cost of Cardano has increased by 1122%. Topplabs.org experts explained how to choose the most promising digital coins on the crypto market for investment.
Where to look
A large number of different resources are available to crypto investors that can help in finding cryptocurrencies and obtaining important information about them, said Alexey Yakovlevich, an analyst at the Currency.com crypto platform. As an example, he cited one of the most popular services – CoinMarketCap, which collects data on more than 12 thousand tokens. According to the expert, this service greatly simplifies the process of studying cryptocurrencies, since it allows you to monitor their capitalization, trading volumes and supply in real time.
The main criteria for strong projects are revolution, scalability and availability, says Artem Deev, head of the analytical department at AMarkets. In his opinion, the selection of tokens for purchase should be based on these parameters.
The Currency.com crypto platform analyst has added his own criteria by which he evaluates the prospects of cryptocurrencies:
- High investor interest;
- Availability of plans for the future development of the project;
- High trading volume;
- No false promises to investors;
- Absence of overbought by technical analysis indicators;
- Open historical information about the project;
- There is a high probability that there will be positive news about the project in the future.
How to find out the real value of an asset
To find a good entry point to an asset, you need to assess its real value, says Alexey Yakovlevich. In his opinion, technical analysis indicators that indicate overbought and oversold levels, as well as various fundamental factors, can help in this. Plans for the future development of the project and their implementation by developers play an important role in the formation of the value of the cryptocurrency.
The head of the analytical department of AMarkets recommended paying attention to the initial offerings of tokens (ICO, IEO and IDO). With participation in initial offerings, the investor becomes a participant in the project at the very beginning of its launch, and in this case, the profit from investments can be maximum, since this method allows you to enter the asset at the lowest price, Deev noted.
“However, this is a rather risky undertaking, since about half of the projects are quickly phased out. You can invest as little as possible in different projects, so that you can later see and analyze which ones are growing, due to what, and buy more of these coins, ”the analyst warned.