What you should know before you invest in that altcoin
Investing in cryptos can be tempting looking at their returns. However, you should not jump in the boat without having basic knowledge.
Here are some things that I think you should look at before investing in an altcoin.
The first step I recommend is to visit coinmarketcap website to see the ranking of different coins. Observe all the market data: From Market cap, Price, Circulating supply and Volume.
Market cap is a short form for market capitalization and is found by simply multiplying the price by the circulating supply.
Note That higher market cap means low risk and investment are secured but ROIs are less, while lower market caps means high risk but can give very high ROIs.
The higher the supply the lower the value, basic economics.
The circulating supply is defined by coin market cap, as the number of coins that are circulating in the market or general public hand.
Volume is the dollar amount of a coin traded in a period of time.
Take all this factor into consideration when looking for a coin that you want to invest in that will grow in value over time.
*Finally do your own research to see what the coin is offering and what problem is the altcoin providing solution for? Who is the team behind this coin and what are their credentials and motivations? what value is it adding and who does it affect the most.
I believe if you follow this steps you would be able to make an informed investment.
Goodluck Guys