I just watched the latest episode of the Magical Crypto Friends show and somewhere at the end a website called CoinMarketBook (CMB) gets mentioned. I took a look and found out it is quite interesting. It ranks (and gives statistics of) coins based on the buy support levels instead of the well-known total market capitalisation, like CMC does.
Source: Pixabay
What is 'buy support'? CMB defines it as "the sum of buy orders at 10% distance from highest bid price". So it basically tells you how much real demand (buy orders) there is for a coin is at the price range between the current price and a 10% lower price. That is actually a far more interesting metric that total market capitalisation if you ask me!
Of course, there are ways in which this metric can be manipulated, for instance by spoofing. Also the data might give a skewed view of reality because does not include all exchanges and volume for a lot of coins is low, but when the next bull run arrives this metric might actually be the one I will be looking at before I get into a coin.
The website also shows some very promising other metrics like the 'Bottom indicator'. Take a look ;-)
What are your thoughts on the buy support metric vs. total market capitalisation? Let me know in the comments.
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Disclaimer: I am not a financial advisor, trader or developer. I am just a blockchain & cryptocurrencies enthusiast. Make sure you do your own research, draw your own conclusions and do not invest any money that you cannot afford to lose.
"Buy support", "liquidity"and "spread" are things investors look at before investing. For example large investors cannot buy small crypto names as they would immediately influence the spread too much. In time there might arrive small cap crypto and large cap crypto Funds I bet. (apart from the actual users of the currency for payments etc)
That might very well be the case indeed. Basically what we see with index funds of the traditional stock market as well :-)
Dear @cryptotem
Just decided to see how have you been doing, since I didn't hear from you in a while. I noticed that you didnt post anything in a while.
Did you give up on Steemit? :(
Yours,
Piotr
End of 2018, BTC is down from $16k down to $5k. That shows the weakening of the BTC as well as the altcoin with other lesser background.
And this is also a chance for #Nexty to rise strongly. In the future it is likely that nexty will rise to the top on Coinmarketcap
You got a 20.99% upvote from @booster courtesy of @cryptotem!
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