The crypto industry started with only one crypto token, i.e., Bitcoin, and today there are around 6000 cryptocurrencies that get actively traded in the financial world. Out of these 6000 cryptocurrencies, how will you choose one if you invest in any cryptocurrency? There will be a lot of confusion, and I guess you are not alone as thousands of people are eager to invest in cryptocurrencies but cannot decide on one cryptocurrency. Therefore, it is crucial to do deep research while choosing any cryptocurrency to invest in. You can become a bitcoin buyer by visiting its official website of allin1bitcoins.com .
This article will discuss the R.O.H.A.S valuator of cryptocurrencies that will help users turn their research into the right actions and choose the correct crypto token to invest in. But, first, let us understand what the R.O.H.A.S means and stands for individually.
It will help if you are looking for the revenue model or impact of cryptocurrencies on the economy. Revenue is what you must consider while looking for cryptocurrencies. Cryptocurrencies are financial assets, and for their ecosystem, high-powered computers get used to solve complex problems and generate new coins. The ecosystem of cryptocurrencies includes node operators, miners, partners, and startups built on a specific platform.
For instance, Bitcoin is a peer-to-peer medium of exchange that is independent of banks or the government. The main idea behind bitcoin is to allow users to make payments without involving any third party. As a result, the cost of bitcoin transactions is minimal compared to traditional currencies, and the speed is fast. It is why most people choose bitcoin to send and receive payments from people across the world.
Another critical thing to look for is the organization that is behind cryptocurrencies. As we know, no government backs cryptocurrencies which means these are decentralized. A small team or group will be behind every cryptocurrency, including its marketers, founders, developers, and more. Learn about the whitepaper of cryptocurrency; the team behind it must be highly skilled and reputed. The team must have relevant experience, reliability, and excellent social media reputation, and solid credibility.
Each crypto coin has its organization behind it, including the community members who invest and market it.
The third thing to consider is the history of cryptocurrencies. Each crypto coin gets invented at a different time with different motives and has distinct visions. It is crucial to analyze whether the crypto coins have achieved their motives in all these years or not. Not all cryptocurrencies are popular and have achieved their motives like Ethereum as it scores poorly currently.
Along with history, you must also learn about the liquidity of digital coins. Ideally, cryptocurrencies must have experienced good growth and must have good trading volume along with active users. In addition, cryptocurrency should have trade pairs, enough liquidity and must be present in the list of crypto exchanges.
While considering the algorithm of any cryptocurrency, there are three aspects that you must consider that include developer pool, consensus mechanism, and the source code. The source code of cryptocurrency must be of high quality. It would be best to consider a few factors in any crypto’s source code, including quality and quantity of commits, pull requests, stars, third-party audits, pull requests, issues and resolutions, and documentation.
The consensus mechanism of crypto must be secure, proven, and effective with negligible environmental impact. When we talk about the developer pool, it is essential to analyze the availability of developer talent for the long term. Other factors that are important to consider are the current availability of talent, skill enhancement, availability of resources to learn, the complexity of coding skills, and more.
S- Social engagement
Lastly, we will talk about the social engagement of the community of cryptocurrencies. Of course, each crypto has its community, but not all have an active, positive, significant, engaged, and vibrant community. Therefore, it is essential to check the social status of each cryptocurrency on social media handles and their engagement on social media. For instance, bitcoin’s community is large, active, and positive, and it keeps on engaging more and more investors to get attached to its community.