Today's lesson is very important: How to assess the strength of any coin through numbers?
# Many beginners focus only on the coin's price, thinking that a cheap coin is always a golden opportunity. But the truth is that the strength of any project is measured by 4 key numbers ๐
1๏ธโฃ Market Cap
Market cap = Coin price ร Number of coins in circulation.
Small (< 50M) = Very dangerous and high speculation.
Medium (50M โ 500M) = Has a chance to grow with some risk.
Large (> 1B) = More stable and considered strong projects.
2๏ธโฃ Daily volume (Volume 24h)
Volume indicates activity and trading.
High volume = Easy entry and exit.
Weak volume = Difficulty in selling and price may collapse quickly.
3๏ธโฃ Liquidity
Liquidity means the availability of capital within the coin.
If liquidity is locked = Security for the investor.
If not locked = Risk that the developer may suddenly withdraw it (Rug Pull)
4๏ธโฃ Number of Holders
The number of wallets indicates the project's spread.
Thousands of holders = Trust and spread.
Hundreds or very few = Unknown and risky project.
Practical examples for clarification:
โก๏ธ A strong and long-term coin.
2.๐น $PEPE (Highly speculative meme coin):
Price: Only $0.00001107.
Supply: 4.98 trillion tokens.
Daily volume: $54.39M (Good activity).
24h change: +1.84%.
โก๏ธ An active coin but short-term speculative due to huge supply and high risk.
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โ Summary:
A strong coin must meet 3 conditions: high liquidity, active trading volume, and a significant number of holders. However, a coin with a small market cap or a very large supply and weak trading volume โ it is dangerous speculation, like many meme coins.
