How to Choose Your Cryptocurrency: 9 Essential Factors

Today, the cryptocurrency market is rapidly growing. Modern projects appear daily, and coins can be used almost in any situation. With popular tokens, you can book a hotel room at Travala or go to play pokies online and choose BTC or ETH as a payment method. But which cryptocurrency to choose for investments? These 9 tips can help you make your decision and try to avoid losses.

Listing on the Stock Exchange

Check if the coin you are interested in is present on a reputable cryptocurrency exchange. These platforms have strict policies, so only those coins that meet their high standards get access to millions of active users.

If the cryptocurrency is not listed on any popular exchange, it is better to do some research and find the reasons why it might be.


The value of a cryptocurrency is important but should never be the main factor in making a final decision. Trending coins can be overvalued because of the hype. On the other hand, cheap coins can be sleeping giants with limitless future potential.

Trade Volume

Trading volume shows how active the cryptocurrency market is. It indicates the total value of coins sold over a certain period of time, usually the daily volume on cryptocurrency exchanges.

High volume usually represents a high demand for cryptocurrency. This means that the market is liquid and there are enough buyers and sellers to execute orders.

Even if demand drives the price up or down in the case of panic selling, it can still be smoother than in a market with low volume. Low demand, and therefore volume, indicates difficulty in buying or selling assets at competitive prices.

Market Capitalization

Cryptocurrencies are ranked by their market capitalization. Market capitalization shows the total value of coins in circulation. Capitalization is calculated by multiplying the total amount of a particular cryptocurrency in circulation by its current price.

Market capitalization is an important criterion for choosing a cryptocurrency to invest in because it helps determine the strength of a particular currency. Different coins with capitalization have different growth potential, risk levels and returns.


The personalities behind a crypto project are very important. A strong, credible team with experience and know-how can be an even more powerful factor than the innovative idea itself. An asset desperately needed in space, but led by an inexperienced team, may not realize its potential.


Evaluate the current state of the project’s development and what are its plans for the future. What short- and long-term goals have been set? What will they accomplish and when?

The roadmap will show you whether the crypto project has a realistic business strategy and how capable it is of delivering on its promises.


Do a general overview of the market and where a potential crypto-project operates in it. Does it have many competitors? What makes it stronger or weaker? Are there external factors that could have a decisive impact on the project or its market category?

Knowing the context around an asset is important and can certainly help you make rational decisions.


There are more than 10,000 different cryptocurrencies on the market, and new ones appear every day.

Keep an eye out for new, promising opportunities. Niche projects, pioneers in a certain category, can have huge potential, and early participation in them can pay off well in the future. You may want to diversify your crypto portfolio.


Check the community of the potential project. Does it have a large base of subscribers on social media platforms and forums? How active is the community? What are the main ideas shared by followers and critics? Do they see potential in the coin?

The success of any cryptocurrency project is highly dependent on its community and a dedicated army of fans. Strong support shows genuine interest and trust, so communities are ambassadors for the project and help it develop.


The cryptocurrency market is volatile. It can bring profits, but at the same time it can lead to losses. Don’t invest more than you can afford to lose.

Don’t make emotional, spontaneous decisions and always do your research first.

Track and monitor your investment progress, and only then expand your portfolio according to your own goals and research.

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