Ways to evaluate crypto.

[Bobcrypto]

I had thought that this could be one of the ways to properly evaluate crypto, however i stand to be corrected.
In my opinion, cryptocurrencies are valued based on a simple formula, Coinmarketcap = Circulating Supply X Coin Price. Circulating supply is the total number of coins in circulation and coin price is the volume based weighted average across various cryptocurrency exchanges which have volume more than 1$. Are there better evaluation methods? Let share guys

[Peter90]

In my opinion, cryptocurrencies are valued based on a simple formula, Coinmarketcap = Circulating Supply X Coin Price.

If the value of a crypto is its market cap, then it's by definition impossible for it to be over- or undervalued.
So, how can we decide if it's time to buy or to sell?
 

[Pegasus]

Coinmarketcap = Circulating Supply X Coin Price.

As far as I know, this is the general method to calculate a cryptocurrency's market cap. But your topic titile and topic content don't really match. To add a few thing, some people are mistaken between "Circulating Supply" and "Total Supply". Circulating Supply is the number of coin (estimated) that are circulating in the market. Meanwhile Total Supply is the amount of coin that exist at the time being. That mean, Total Supply includes Circulating Supply and amount of coins/tokens that are being locked or reserved. There's another concept, Max Supply, is the maximum of coins/tokens that can possibly exist. For example, Max Supply of bitcoin is 21 million.

[Bobcrypto]

In my opinion, cryptocurrencies are valued based on a simple formula, Coinmarketcap = Circulating Supply X Coin Price.

If the value of a crypto is its market cap, then it's by definition impossible for it to be over- or undervalued.
So, how can we decide if it's time to buy or to sell?
 

You can determine when to buy or sell through the simple equation, ie the circulating supply multiply by price over a period of time.
This situation fluctuate and that is the more reason you thave to study some it charts to determine the trading partern of the buying and selling. I think there other better ways of valuating crypto, I'm ready to learn if you bring them on the forum. Thank you .

[aiviaa485]

Evaluating cryptocurrency may also be good to see from CoinMarketCap but it's better to immediately discuss with the main Telegram group from Coin.
After discussing at the Main Telegram then immediately look at the Coin market, whether it has a good price or not to be traded.

[Niteroy]

Coinmarketcap is a good service, but it takes information about trading volumes from those exchanges that create artificial trading volumes, so there are similar services that show more accurate information about the trading volume. For example, https://openmarketcap.com/ and this may be one of the ways to evaluate a particular coin.

[ZionRTZ]

Your title could be misleading since you only stated how the market cap is computed. To evaluate whether a coin is overvalued or undervalued should be more appropriate. We know there are a lot of factors to consider here and the current market cap is just one of them.

If the value of a crypto is its market cap, then it's by definition impossible for it to be over- or undervalued.
So, how can we decide if it's time to buy or to sell?

Exactly.

In making such decision, you have to rely on some TA's (overbought, oversold, etc.) or FA's (low-medium-high market cap etc.)

[Peter90]

In my opinion, cryptocurrencies are valued based on a simple formula, Coinmarketcap = Circulating Supply X Coin Price.

If the value of a crypto is its market cap, then it's by definition impossible for it to be over- or undervalued.
So, how can we decide if it's time to buy or to sell?
 

You can determine when to buy or sell through the simple equation, ie the circulating supply multiply by price over a period of time.
This situation fluctuate and that is the more reason you thave to study some it charts to determine the trading partern of the buying and selling. I think there other better ways of valuating crypto, I'm ready to learn if you bring them on the forum. Thank you .

My point was only that establishing the Market Cap of a coin doesn't mean establishing its value.
The MC of a coin at a given time is not a criterion to decide if buy or sell that coin, just as the price of a coin is not a criterion to decide weather to buy or sell.

You must use other criteria, as for example comparing MC and price of a coin in different times. Analysing MC and price movements.
There comes chart analysis to play.

Another way to evaluate a crypto is to look at its potential applications in the real world, in the economy.
Another one is to look at which investors or institutional users are interested in it.