Key Metrics to Monitor Before Investing in a New Cryptocurrency
Simran Mishra
Market Capitalization: The market cap is calculated by multiplying the current price by the circulating supply. It indicates the relative size and stability of a crypto project.
24-Hour Trading Volume: This metric reflects the total dollar value of transactions over the last 24 hours. A high trading volume signals good liquidity and a healthy market.
Circulating Supply: Circulating supply is the number of coins currently available. It impacts the price and the future availability of coins.
Maximum Supply: The maximum supply is the total number of coins that will exist. Knowing this helps in understanding the potential for future price increases.
Price Trends: Tracking prices and their movements helps us understand market behavior, revealing trends and potential entry or exit points for investors.
Funding Rates: Funding rates show payments made between traders to maintain price stability in perpetual futures contracts. Positive rates suggest long-term dominance.