All About BTC, LTC, ETH mining as well as other alternative crypto currencies
Checking the market capitalization of crypto currencies is working quite well for older and established coins, however when a new coin launches it can temporary move to the top places in terms of market cap and that can be misleading. So using a bit more advanced algorithm may be helpful in providing a more realistic information in terms of crypto coin popularity than just the current market capitalization alone. And a new service called CoinGecko was just launched that evaluates cryptocurrencies by looking at more core metrics beyond just their market capitalization. The service is still in Beta stage and currently evaluates 24 cryptocurrencies based also on their developer activity, community team and liquidity. And with just a quick look you can see that there is difference as compared to only ranking based on market capitalization.
The custom ranking algorithm takes into account things like:
– Reddit/Facebook/Twitter subscriber count.
– Liquidity volume across multiple exchanges and trade pairs.
– Github stars/watches/contributors/issues/forks/pulse/merged pull requests.
Obviously having a bigger and more active user community does play an important role for the value of a currency and for example Dogecoin may not have such a high market capitalization as Peercoin, but has a larger community around it and is ranked 3rd by CoinGecko while at the same time the market cap of DOGE secures it the 5th place. So definitely an interesting project to keep an eye on, especially with more coins being added and new interesting ones being launched.
Nowadays it is hard to always keep track on new promising coins and to jump on the train as early as possible in order to be able to mine more coins at low difficulty. Even if you do there is no guarantee that the new coin you have mined plenty of will be catch users attention and the exchange rate will skyrocket, so you will be able to make good profit. Another alternative is to look for changes in the top crypto currency market capitalization and jump on coins that have been available for a while, but that just recently started to rapidly increase in market capitalization.
For example the fairly new AuroraCoin that has been premined has managed to secure the third place in no time in terms of market capitalization, getting ahead of Litecoin. Dogecoin has fallen down to the 6th place and could continue to drop down in the list. Another new coin that has caught a lot of attention lately thanks to the AUR fame by being something similar as an idea is MazaCoin that has already secured the 17th place in terms of market cap. So if you have already missed the Auroracoin trading (Scrypt algorithm) and still haven’t checked the MazaCoin (SHA-256 algorithm) you still might have some time to mine a bit of MZC before the difficulty has skyrocketed, especially if you have a Bitcoin ASIC mining BTC at the moment.
If you want to be able to easily track what is going on in terms of crypto currency market capitalization, then you should keep an eye on the coinmarketcap website that has all the date you need in a simple and clean interface. Currently the website is tracking 146 crypto currencies and covers all of the major ones along with many of the new cryptos that are getting released and are not just a new pump and dump money making coins.