How to choose a potential currency? Just look at these five key points!
Choose the right track and the right project, and it will be more reliable to choose a currency!
1. Choose a track
First, make it clear which "circle" you want to play in in the future, which is to choose a track. Just like opening a restaurant, you have to decide whether to make Chinese or Western food. After choosing the track, find the most potential "store" in this circle-currency. Multi-track deployment is a good strategy, but if a project is particularly promising, it is also good to focus on running one.
2. Choose a good project
Choosing a good project is like choosing a good chef! The project must have the potential for long-term development and strong competitiveness. It is best to form its own ecological closed loop, have strong ability to make money, and continue to innovate. Such projects are worth investing in.
3. Pay attention to ecological applications
Tokens need to have practical applications in the project and form their own small ecosystem. It is best to be used for payment, service fees (GAS fees), staking to earn interest, etc. Even if there is only a staking function, it is better than tokens that are only used for governance voting.
4. Liquidity
Liquidity is like the occupancy rate of a restaurant. It is best if most seats are occupied (80% or more liquidity), and half is also good. If liquidity is too low (below 50%), it is necessary to evaluate whether more people will participate in the future, or whether a large number of circulating tokens will suddenly increase.
5. Market value
Market value is like the investment threshold of a restaurant. Low-market value projects often have greater potential and room for growth. But if it is a high-market value project, unless it has significant growth potential, it should be invested cautiously. Everyone wants to find the "potential stock" that can double several times!
Through these five key points, you can better select potential currencies and increase the probability of investment success.