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For the last several months, the crypto markets have been in a bear trend but interest in cryptocurrency is still high. Every passing day, new investors are taking the leap into crypto assets. Since the market is continuing to stabilize, investments in cryptocurrency will only increase. There are several people who are looking for a way to buy bitcoin in Canada.
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For the last several months, the crypto markets have been in a bear trend but interest in cryptocurrency is still high. Every passing day, new investors are taking the leap into crypto assets. Since the market is continuing to stabilize, investments in cryptocurrency will only increase. There are several people who are looking for a way to buy bitcoin in Canada. In fact, while investing in digital assets such as cryptocurrencies, it is very much essential to follow a strict strategy as well as focus on understanding the key drivers of a coin’s value.
1. The Business PropositionCrypto projects are typically like your new business or a startup. Having good business will solve big issues and fill needs. And the same thing goes for crypto startups. You need to focus on the prospects having the real value and just stay away from all the shady projects and founders.Hence, this is actually the time for you to look at the function of the cryptocurrency that they are selling. Check whether it is a security token or not. It means that anyone having a coin will have a piece of the company too, just like a stock.
2. Total & Circulating SupplyThe total supply of a coin will represent the maximum number of coins that you can enter the market with and can be minded. While on the other hand, the circulating supply will represent the recent number of coins in the market. And since most of the coins are mind or even a percentage of them are held by the founders, then you will see a difference between the two figures.Bitcoin’s total supply is only 21 million coins. This is one of the factors that drive its value up. Lower supply means higher demand.
3. Developer ActivityHaving some strong projects along with high developer activity is essential. In case, the activity is low or actually down trending, then that is a concern.
4. Price HistoryAs we all know that cryptocurrencies are highly volatile and having that because of the hype, speculation, pump, and dump schemes as well as the lack of regulatory oversight. You can tell a story just by looking at a coin’s price history. Hence, it is essential to do and mostly the cheaper coins with lower market caps are pretty more susceptible to pump as well as pump schemes.
5. Community ActivityA project that has a strong community is pretty much essential as a high developer activity. In fact, the larger, as well as more involved the community, is, the most valuable the coin should be.And one of the easiest ways to gauge the community size is to see whether the coin’s Twitter page. Check how many followers does the project has and how much activity is occurring in the account? Reddit is another good place to check. Reddit has become ground zero for cryptocurrency-related news, announcements, and general conversation about coins.
These are the 5 top points that you should keep in mind before you buy bitcoin in Canada.SOURCE CREDIT: https://medium.com/@netcoinscanada/top-5-things-to-consider-while-buying-cryptocurrency-22e9adfa9737
