Q. What to Consider when Choosing an Altcoin ?
When choosing altcoins for Trading, we recommend paying attention to the following Indicators:
1. Market Capitalization
If project is Currently valued high, that's not everything: it's worth paying attention to historical metrics - has the market Capitalization fallen before?
If so, demand for the Token decreases. You can check the Metric on Coinmarketcap on the page of a particular coin.
2. The Technology behind the Project
Developers of Hundreds of Projects that Appeared after Bitcoin don't come up with anything original, only a few solve real problems.
For example, Ethereum solves the difficulties that Bitcoin faces: it is more energy-efficient and its market capitalization grows faster than that of "Grandpa".
All of this costs money, which users pay in the form of "gas" - a commission. In turn, Polygon solves the problem of high Ethereum fees - and so on.
3. Project Goals
A project with a clearly defined goal and Implementation plan is a good sign.
4. Study the Project Team
If it is Anonymous, it should at least be a cause for concern.
In addition to the team and its leader, the project should have a strong community: the more it shines in the media, the better for investors.
No less important factor when choosing a coin is tokenomics. You should find out how many coins are in circulation, how many more will be released, and when they will be released. For example, if only 10% of the total coin issuance has been released, the release of new coins in the future will put more pressure on the price than if the coin had already issued 90% of its issuance.