Cryptocurrency: Basic award – Assessment of the real value of Kryptos
The cryptoma market was known for its volatility and unpredictability. With the growth of Bitcoins, Ethereum and other Altcoins, investors have thrown themselves into these digital assets, in the hope that they will make a quick profit. Before investing in any cryptometry or the purchase of any cryptocurrency, it is necessary to evaluate their basic value. In this article, we throw ourselves in the concept of basic evaluation and examine the way in which cryptocurrencies are applied.
What is the basic prize?
The basic prize is an analytical approach that focuses on the basic basic elements of cryptocurrencies, such as market capitalization, income flows, users base, adoption rate and technical specifications. It helps investors to understand if the asset is underestimated or overestimated on the basis of these basic values.
Traditional evaluation method
Traditional financial markets are largely based on the evaluation report, such as the price/profit ratio (P/E) to determine the value of asset. For example, if the company has a market capitalization of $ 100 billion and generates $ 10 billion revenues, its P/E report would be $ 1,000. However, this approach may not accurately reflect the real value of the property.
The unique features of cryptocurrency
Unlike traditional assets, cryptocurrencies have unique characteristics that make it more difficult to analyze with traditional evaluation methods:
* Liquidity : Cryptomas have extremely high liquidity, allowing investors to buy them and sell them quickly. This liquidity can lead to rapid price fluctuations, which makes it difficult to determine the value of the asset.
* Volatility : cryptocurrency prices are notorious, and daily prices often exceed 10-20% per day. Due to this volatility, it is difficult to predict the future performance and value.
* Limited offer
: Most cryptocurrencies have a limited offer that can lead to lack and increase in demand.
The basic prize of the main cryptonic
Let’s examine the basic prize of some of the main cryptocurrency:
* Bitcoin (BTC) : With the market capitalization of over $ 2 trillion, Bitcoin is the largest cryptomanes. Its income flows include transaction fees from miners and transaction volume.
+ Price report: around 30,000
+ Market capitalization: more than 2 trillion dollars
* Ethereum (ETH) : As one of the most widespread cryptocurrency, Ethereum has a strong users’ base and a significant flow of revenues through transaction commissions and the introduction of intelligent contracts.
+ Price -to -Market Report: Around 20,000
+ Market capitalization: More than $ 150 billion
* Litecoin (LTC) : With the market capitalization of about $ 10 billion, Litecoin is a popular alternative to Bitcoins. Its income flows include transaction fees from miners and the development of smart contracts.
+ Price report: around 1,000
Conclusion
Although the traditional methods of evaluation can provide a perspective of the value of the asset, it is possible not to accurately reflect the actual value of the cryptonic. The basic prize offers a more comprehensive approach, taking into account the basic economic foundations of cryptocurrency.
Investors should consider the following when evaluating the basic prizes:
* market capitalization : The larger capitalization of the market often suggests greater liquidity and reduced volatility.
* Flows of relay : cryptocurrencies with significant income flows from transaction taxes, intelligent implementation of contracts or other sources can be more valuable than those without these income flows.
* User Base : A strong user base can increase demand and price for cryptomers.