Where can I get that cryptocurrency?
The first and most important aspect is always where to get a particular coin or token. There is a very simple reason why this is a key issue: if it is not available on the leading cryptocurrencies, or can only be bought in 1-2 places, it may even be the best cryptocurrency in the world, but if it is not available, it will never rise the exchange rate. It is essential to be present on the largest stock exchanges, but it is also an advantage to be available on as many small, medium-sized trading platforms as possible.
How long can a cryptocurrency project NOT grow?
How long the value of a cryptocurrency can go is determined by many aspects, it is always difficult to predict. However, how long you can’t go is already much easier to predict. To do this, we need to look at the size of the total set, i.e. how many pieces there are in total from that particular coin or token. There are cryptocurrencies that have an infinite supply, in which case we cannot use this approach. Of course, this does not mean that such a project could not bring huge returns, but the approach detailed here cannot be applied. If we are aware of the size of the total stock, then all we need to know is how much the exchange rate needs to grow for us to do well. This will be our target price, which if multiplied by the total stock, we get the future capital value, i.e. market cap. If we see that this value is greater than the bitcoin market cap, or even a multiple of it, then our target price is certainly unrealistic. For example, if the total stock is one hundred billion and our target price is one hundred dollars, then our ideas are most likely unrealistic. However, if we get a very realistic value, we can even achieve what we planned. For example, if the total stock is ten billion and our goal is ten dollars, we may even be able to achieve this, provided the project is strong enough and, of course, accessible.
Compare it to other cryptocurrency projects
Continuing the thoughts of the previous point, it is a good approach to compare the parameters of the selected project with the values of another cryptocurrency, for this we have to choose one that is comparable in our corner numbers to our savior. The total stock will be authoritative, if what we compare has a similar total stock, but the price is higher, then we can assume that our choice will reach that value as well. For example, if the total stock of our chosen is 60 billion and the price is half a cent, then we need to look for another project with a total stock of between 50 and 100 billion, we need to look at their prices. If we see that their prices per coin range from two to three cents, we may be on a good track as there is growth potential in our project.
How big is the market?
Last but not least, we need to look at the size of the market for the project. This is never easy to assess, sometimes it requires a lot of research and research. But usually we can get at least a few corner numbers with a quick search, the point is to have a number or two in our hands that we can work with. If the heart of our choice, for example, is planning to introduce blockchain innovation in the furniture industry, and cryptocurrency will be an internal unit of account, then we need to look at how big that market is. If it turns out to be $ 1 billion a year and the total inventory of the project is fifty billion, then the only question is how much market share you need to gain, how many customers you need to have to reach our target price. There has never been a business in the history of capitalism that could have reached one hundred percent of its target market. On the other hand, a market share of ten or even twenty percent is already conceivable with many years of hard work, provided the service is truly viable. Be sure to analyze the target market for a given cryptocurrency project, go around it, and try to estimate how much of the market you can get, and project that onto the expected value of the cryptocurrency.
Thank you for reading, have a nice day and let's invest ! :)
