How Do I Choose a Coin for Long Term Investment || SteemShip

How do I choose a coin for long term investment?

Investing in any coin means investing in that project To do. That means you are investing in a project, not a coin. Coin is the economic or financial value of the project. If the project is good and the governing body of the project is transparent then the future of that project is good.

The first things to keep in mind are:

1.You see the project is basically coming to the market to solve any problem. This means what this project will do. Suppose a project comes with a "cross chain" service, which means you can no longer send coins from one blockchain to another blockchain. Even if sent, it will not go.

2.Which verification company is verifying it means certifying. In this case "certik" is the most trustworthy name.

3.How much is the supply of coins. If there is too much supply, there may not be a lot of coins because it involves market cap. If you divide the market cap by how many coins there are, then the value of the coin will come out. Suppose Shiva Coin has 5% 8,063.28 billion coins with market circulation or market and total supply is 586,735,030,808,323 then there are still many coins to come in the market.

^{I have been researching this coin for a long time}

4.How much circulation will come in the market and what is the system of mining means how the rest of the coins will come in the market. If there is proof of work then it needs mining and it will not be better than usual now because the whole world is suffering from energy crisis now. So proof of stacking is best because it does not require mining so energy consumption is also not required.

5.Maximum supply will come in the market: This means how many total coins will come in the market because the market cap will depend on it and the value of each coin will depend on it. So unlimited supply means printing like dollar if you want, it means there is inflation. And inflation means that the future of coins is not good. We need to pay attention to deflationary coins. Because they are limited.

6.Market Cap: It would be wise not to invest in the coins below 1 billion. Or you can use the DCA method for investing. Projects above 1 billion are called medium market cap projects. And projects above 10 billion are called large market cap projects. These are relatively safe.

7.Whether the project is dependent on someone: If the main project is dependent on the other side project, then it is better to stay away from it. Because the interaction of that project may cause damage to the original project such as LUNA. These are the basics and there are many more things to look for, such as who the founders are, what their history is with this market. They have or are having or will have collaborations with some projects or companies. Where else can coins be used? These are called roadmaps.

^{This is an NFT base project. I like its fundamentals so I invested in it.}

Since it is a long term investment to look at the fundamentals, it would not be right to invest without knowing about the project later.

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