A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April 2013 when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $2 billion at its peak, but a 50% plunge shortly thereafter sparked a raging debate about the future of cryptocurrencies in general and Bitcoin in particular.
When entering the world of cryptocurrency investing the first thing veterans and newcomers alike have to deal with is the vast amount of information available. This is no different than the situation in any other investment vehicle, be it stocks, bonds, commodities, or forex, to name just a few.
The difficult part is separating the good from the bad, the unbiased truth from the wishful thinking of uninformed participants of the crypto space (and there are a lot of those around). Company websites, roadmaps, countless videos of self-proclaimed gurus, well-intentioned but poorly informed enthusiasts, the outright shill machines, and con artists are nothing but a hindrance when trying to conduct proper cryptocurrency analysis.
In the world of crypto investment, it is not enough to just join a few Telegrams or Twitter groups, watch a few YouTube videos and read an article here and there to make a buying decision. A more focused approach is needed. To this end, finding the correct sources of information and commentary needs to be complemented with the aid of massive amounts of data, preferably sorted in a way that makes its analysis straightforward.
A tool providing useful information like market caps, coin supply, trading volumes, etc., is a good start. An even better start is finding a crypto ranking that takes even more data into account to empower you, the investor, to make sound decisions in allocating capital to the different digital currencies. Or even to know when to liquidate and stay in cash to weather a storm.