How to figure out the value of a cryptocurrency

[EvelynKing]

Being a relatively newer and yet unexplored industry, figuring out the price of a new cryptocurrency is not an easy task. There are no laws or regulations about cryptocurrency price nor are these affected by other financial markets.

Therefore, the only way to determine or even speculate the future value of a digital currency is by prediction.

Cryptocurrencies are digital currencies, which do not hold any real value. The value or worth of a cryptocurrency depends on its market demand, which is true for fiat currencies as well.

However, the problem is that there are no regulations about the price of cryptocurrencies or how they are affected. That’s why we use predictive logic to find a way to figure out cryptocurrency value.

How to analyse a cryptocurrency (to determine its value)

Here we analyse a cryptocurrency through economic, financial and various other aspects in order to evaluate its value. We will take the example of titan coin, which is a new yet high-potential digital payment currency.

Market potential

A cryptocurrency must have a good enough demand in its target community. If there is no or too low demand, the currency will eventually fail to nothing.

Ask questions about the market demand, potential users, company’s reputation, industry growth, competition, etc. to determine the actual potential of a crypto project.

For instance, Titan gives a faster, more secure and low-cost way for making digital payments globally through its unique PoW/PoS based blockchain system. Of course, the target market is significant enough for investors to know that there will be a huge demand for the product in the future.

Purpose

Each project should have a purpose, which has a direct impact on its intrinsic value. Why would anyone buy a coin that has no functional benefit or value?

Ask questions like what problem the project is trying to solve, how it expects to improve things, how it is useful for the buyers, etc. in order to determine its functional value.

For example, EOS, Monero, Siacoin Titan coin, Tron, ETH has a strong use case as a digital payment system that enables instant payments to anyone in the world. Besides the in-house applications of the Titan platform, the titan payment system can also be integrated with third-party applications for easy, secure and faster digital payments.

Execution

Even if a project/coin has high potential and great market demand, it will not succeed without a proper execution or adoption strategy. This is why it is important to ensure that the company has a realistic way to target its audience and facilitate adoption.

If you take a look at the titanprojects’ roadmap, you’ll see that it implements a nice strategy to gain and retain users. Moreover, the project uses a sound marketing plan to ensure that desired results are achieved.

Growth potential

A project that has a nice enough plan as well as high demand in the market will still need funds to realize its plans and ensure growth. Investment is what enables a project to develop an actual functionality and acquire resources to capture the market effectively, all of which have a direct impact on increasing the coin value.

It is right to believe that the investors are now ready to make the switch from cryptocurrencies with low actual value to the ones that are backed by strong fundamentals and have high growth potential.

So, the best way to find highly profitable cryptocurrencies is to look for projects that are trying to develop solutions to the world’s problems.

[Fenix]

Yes, cryptocurrency is a completely new financial asset. Unlike other financial assets, a decentralized cryptocurrency does not have usual pricing, and its price is based solely on the ratio of supply and demand in the market. The price of a cryptocurrency can only be fixed at a certain point. Therefore, any planning of the price of a decentralized cryptocurrency is impossible.

[sampoerna]

We can vigure it out through the data offered in coin market cap, coingecko, and also others. We can see their circulaltion supply, market activities, token holders, investors, and also the price.