Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Husires on January 27, 2024, 01:28:44 PM
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
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My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
Correct! I consider coinmarketcap as a tool for the tokenomics of a specific crypto I am going to take part with but I am also not relying on it specially about the rankings but of course as a tool majority of crypto enthusiasts use it as a reference for the top coins on the market capitalization. I personally use two coingecko and coinmarketcap for the tokenomics and I don't really care about the rankings as we can see it obviously on the market on what coins does have better performances.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
We will never have one criterion that is best in all aspects or for everyone. Usually we choose a few aspects for reference and evaluation, and market capitalization is the simplest one: it's in $, displayed as numerals, and every token has it.
Basically, capitalization represents the value of the token: if the project is interested by investors and they buy tokens, the token price will increase and capitalization will increase and be in good order on Coinmarketcap. We have a lot of good and bad projects in this market, but usually, the top 100 are projects that have been accepted by the community and are quite safe to invest in. At least they aren't shitcoins that could disappear tonight.
Marketcap is a basic parameter for new investors. Experienced investors will need to learn more aspects: dev team, tokenomics, solutions, partners... In the past, we used to have Bitconnect's BCC in the top #13 but it was only was a ponzi/MLM project and disappeared in early 2018 😭
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Yes, the coin market cap ranking is based on certain data. which in fact is based on daily volume, supply, market cap, and other data information. However, whether it is real and 100% reliable, we cannot be sure. because there are several factors. However, the data in CMC is still what we usually use.
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Isn't market capitalization the only way to quantify a coin/token's valuation? You can't use the type of technology each project uses as a basis since that is subjective. Yes, MC can still be manipulated but that's usually for lower cap altcoins. It's harder to do that on top 50 and below. I remember a chartist once said that he doesn't bother making charts for lower caps.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
Everything is important. Ranking based on Marketcap is also very important as an indicator in assessing an altcoin. But looking at a coin's MC ranking certainly shouldn't be based on when a project gets hype. But look at their MC rating when an altcoin project has a sideways price or when the market is calm. Because the real MC will be visible at that time. So beginners often make the mistake of looking at the MC of a project that is really hype. Even though they will only have high trading volume and Mc during the hype. Once the hype is over the real ranking will be seen. cmc ranking is also a measure of the crypto community's trust in an altcoin project.
It's just that considering whether an altcoin project is good or not is not enough from the CMC ranking alone. But there must also be consideration of other things related to fundamentals.
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Coinmarketcap and Coingecko are just basic data references for us.
What is the basic data?
Like the official website, official social media accounts and contact address (SC).
If you say it's all just manipulation, who has that much money to move the top 100 coins while the MCap of just one coin is how much MCap is on Coinmarketcap and Coingecko it is taken from transaction volume.
Coinmarketcap and Coingecko are only optional suggestions, then you decide which project you want to enter and add your own analysis.
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Why is it that we encourage people to invest in bitcoin? It is because it has the highest marketcap and also because it has the strongest blockchain. We put marketcap into consideration.
Another reason is utilities.
Some people will also said people can invest in alcoins like ether and others because they have huge marketcap.
If you noticed, that those high marketcap coins have huge utilities, like bitcoin as an example.
Although, altcoins are gambling. People should know that. Let their prices become low and invest, make money an rush out with profit before they will fall again.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
Sorry but in all you said, you've said nothing actually, or nothing that makes sense to me..
You condemned something calling it bad as it can be easily manipulated, then what are you suggesting is a better option?
I think when someone condemns something, it is his or her responsibility to bring or suggest what they think is a better option, the we the community will look into that which the person condemned, and also look at that which they presented as a better option or alternative, we discus and weigh the two to find out which is actually better in real sense.
It is improper to condemn something, and without proffering or suggesting something else, ask others to tell what is better.
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Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
I am actually of the same opinion with you OP. In 2019 when I fully got into the crypto space, there were some altcoins that was ranked in the 100 top cryptocurrency but before the end of that year, some of those coins got replaced by other new coins which became top 100 rank in Market capacity. From my experience right from after I started investment in cryptocurrency, as the year pass by, the market capacity of some altcoins drops and other new coins take their position in ranking. So, It's not really good metric to use because it can be very deceiving base on the fact that the the price and trading volume can be manipulated.
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My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
Yeah, manipulation is big concern when we use ranking or market cap. Many stablecoin gain high position by convert fiat to their stablecoin. And for really unpopular coin, it's trivial to manipulate exchange rate in order to boost their position or make their coin appear on top rising coin. Even BSV have position #51 on CMC.
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Everything is important. Ranking based on Marketcap is also very important as an indicator in assessing an altcoin. But looking at a coin's MC ranking certainly shouldn't be based on when a project gets hype. But look at their MC rating when an altcoin project has a sideways price or when the market is calm. Because the real MC will be visible at that time.
This may be a good point, but it will not help you, as knowing the price of the cryptocurrency at the bottom means that it may not rise again, especially since many of them fail to return to previous levels.
It is improper to condemn something, and without proffering or suggesting something else, ask others to tell what is better.
For this reason, I am asking about the best alternative, and is there a best alternative or a group of alternatives?
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I would dare say that a large percentage of CoinmarketCap's top 100 is full of totally useless coins and tokens from my point of view. Many of the coins and tokens on that list are not even real projects, with developments that can be studied and our funds invested. And I'm not just talking about memecoins, I'm talking about projects with a good foundation but that over time have been abandoned by their developers and now they simply wait for the market to push them up. For me CoinmarketCap has never been a serious reference when choosing where to invest, it will always be a showcase for Binance products.
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For me CoinmarketCap has never been a serious reference when choosing where to invest, it will always be a showcase for Binance products.
These projects are always quick solutions to the problems of main cryptos. For example, BCH is a quick solution to 1 MB block size, and many tokens are solutions to the problems of ETH, such as Ethereum Classic, ADA, and others. before investing, it is better to add other criteria such as technical development, code update, and uses outside the platforms but many only ranking tokens based on marketcap.
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Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
Marketcap and colume are the best metric around.
Volume is easier to manipulate than marketcap, as it is hard to manipulate the price. Specially when the marketcap becomes large.
Even stocks are ranked according to their marketcap.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
The moment they allowed people to start making comments on coins listed, that's when I knew that the platform is now a shit show and I'm surprised that this was bought by Binance some years back, an investment that's whorth over $200M is not even better than some of the alternatives I have seen like Coin market cal and the rest.
They did some patches to review the platform and they sent email to some members to verify their email, maybe it was to weed out bots accounts and differentiate between real and fake accounts but I still haven't see anything better.
I will advise you to take a look at Coingecko, they are independent and unaffiliated to any company, thier trust scores are fine and even the dark mode is not eye disturbing from the screen.
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These projects are always quick solutions to the problems of main cryptos. For example, BCH is a quick solution to 1 MB block size, and many tokens are solutions to the problems of ETH, such as Ethereum Classic, ADA, and others. before investing, it is better to add other criteria such as technical development, code update, and uses outside the platforms but many only ranking tokens based on marketcap.
That's precisely why I say it. CoinmarketCap is used to know the economic value (although we already know that there are alternatives) of coins and tokens, but from my point of view it is not useful for much else. It has links to the project websites and social networks for example, but that is not 100% useful to me. I understand that it is not focused on much more than those things, but if they updated every new movement of the projects, their new products, links to open source repositories, etc., it would be much more useful to me.
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Why is it that we encourage people to invest in bitcoin? It is because it has the highest marketcap and also because it has the strongest blockchain. We put marketcap into consideration.
I agree with you and this is just an addendum.
For Bitcoin itself almost everyone knows about Bitcoin and many stable coins are storing BTC for backup such as USTC in the terra station network which is now bankrupt and there are many people who exchange FIAT money to Bitcoin to avoid taxes and until now there is a lot of money laundering through Bitcoin. :D
Among them again because everyone knows that the price of Bitcoin has continued to rise throughout the year, this is the reason most people use.
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Everything is important. Ranking based on Marketcap is also very important as an indicator in assessing an altcoin. But looking at a coin's MC ranking certainly shouldn't be based on when a project gets hype. But look at their MC rating when an altcoin project has a sideways price or when the market is calm. Because the real MC will be visible at that time.
This may be a good point, but it will not help you, as knowing the price of the cryptocurrency at the bottom means that it may not rise again, especially since many of them fail to return to previous levels.
That's right, that's why I added that analysing based on MC alone is not enough because of the anticipation of some failed crypto projects or those that have no development.
It's just that considering whether an altcoin project is good or not is not enough from the CMC ranking alone. But there must also be consideration of other things related to fundamentals.
And this is where we need to understand how to analyse fundamentally. Such as knowing that there will be an event or that there will be better developments in related crypto projects. For example, like AVAX, which had experienced a big decline and then was able to bounce back because based on fundamental analysis they were able to rise due to their collaboration with the JP Morgan company regarding the Tokenisation of assets planned for 2024. And for those who do not know this news, when avax is priced around 10 or 13 usd, they are definitely afraid to buy avax. But for those who know this news and have analysed fundamentally then I am sure they have entered since avax was at 13 usd. Because I also did and continue to hold it until now. Because the hypenya is actually not finished.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
When it comes to market caps, CMC and Coinecko are the only tools I use to find out if the tokenomics of a new coin or token has potential. These two platforms will help community investors choose coins, whether they have potential or not.
Through these two platforms, we can see if the market cap of a coin is high or low in the crypto space, specifically in the circulation supply and how much its total supply is. We can see and know how much their market cap is, and we will know if they are high or low cap.
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MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one. MarketCap is calculated by multiplying the current price of a coin by the total number of coins in circulation. This means that coins with a large supply or a high price can have a high MarketCap, even if they are not widely used or have low liquidity. MarketCap does not reflect the true value or potential of a cryptocurrency, as it does not account for factors such as adoption, innovation, security, or utility. A better metric to rank cryptocurrencies would be to consider their network effects, their technological features, their governance models, and their social impact. These aspects can provide a more holistic and accurate picture of the crypto ecosystem.
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Marketcap is a basic parameter for new investors. Experienced investors will need to learn more aspects: dev team, tokenomics, solutions, partners... In the past, we used to have Bitconnect's BCC in the top #13 but it was only was a ponzi/MLM project and disappeared in early 2018 😭
For sure, many people are relying with CMC to get many information that they are looking for including ranking within the cryptocurrency industry. Actually, one reason why CMC is very popular is that they come in as one of the pioneering platform - right platform at right time with right solutions - but we understand that they are providing the basics at most...and maybe newcomers are just looking for the basics, anyway. Now, advanced crypto people would surely be looking for more and I am sure one can also find these tools in the market today. I am not using any advanced crypto tool all because I still belong to the basic category so I am relying more on CMC and sometimes Coingecko, another similar platform we can also use conveniently. In addition, yes I remember that Bitconnect and in fact I was one of its many members back then though I never lost any money on that as I came out at the right time.
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When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.
Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?
My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.
It is called Market Capital not capacity. and I think that a fair way of ranking coins. if we don't rank coins by market capital then what other aspects do you want them to be ranked?
the coin with largest market cap means have bitter share in the market.
Market cap can also be different according to the total supply and price.
So the ranking is correct. but people making investment decision based on marketcap can be wrong sometime. investors should consider other aspects when investing not just market cap or coinmarketcap ranking.
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MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one. MarketCap is calculated by multiplying the current price of a coin by the total number of coins in circulation. This means that coins with a large supply or a high price can have a high MarketCap, even if they are not widely used or have low liquidity. MarketCap does not reflect the true value or potential of a cryptocurrency, as it does not account for factors such as adoption, innovation, security, or utility. A better metric to rank cryptocurrencies would be to consider their network effects, their technological features, their governance models, and their social impact. These aspects can provide a more holistic and accurate picture of the crypto ecosystem.
MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one as cryptex. MarketCap only measures the total value of all the coins in circulation, but it does not account for other factors such as liquidity, utility, adoption, innovation, security, and decentralization. A high MarketCap does not necessarily mean a high-quality project, and a low MarketCap does not necessarily mean a low-quality project. There are many examples of overvalued and undervalued cryptocurrencies based on MarketCap alone. Therefore, I think MarketCap is a useful but incomplete indicator of a cryptocurrency’s potential and performance. It should be used in conjunction with other metrics and criteria to evaluate the true worth of a crypto project.
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MarketCap is a popular metric to rank cryptocurrencies, but it is not the only one. It measures the total value of all coins in circulation, but it does not reflect the demand, liquidity, or utility of a crypto project. Some other metrics to consider are trading volume, network activity, and social sentiment.