How to evaluate cryptocurrency? Begginers path to cryptocurrency evaluation.

If you’re investing in crypto or digital assets for the long haul, it is important to have at least a basic apprehension of what you’re trying to achieve before looking at the technical factors. These factors portray the cryptocurrency market value and provide you with the right knowledge on how to evaluate cryptocurrency.

Ethereum and Bitcoin have been the inception point for many cryptocurrency investors. At present they at least look the most valuable in terms of having the longest track records, however, this is not the most important factor to consider. To achieve a certain grade of sustainability we need to look in terms of future potential. BTC and ETH are outdated technologies and in a few years will most probably be classified as a legacy, something like Tetris.

The Crypto industry is at a fast pace of development. More projects roll out each day. Some are speculative, some are scams, but the genuine sustainable ones will pave the way for future developments in the blockchain industry. These projects are better, more efficient, and are a better fit for today's and tomorrow's realities. Investors are looking for new opportunities so they continue the never-ending quest.

Many investors and traders pose questions about Stabila cryptocurrency evaluation. As we know Stabila is a POS blockchain rolled out in November 2021, so it is the latest blockchain technology on the market to propel further the ever-evolving requirements of a decentralized financial ecosystem.

So what about the evaluation of Stabila cryptocurrency?

The base of any cryptocurrency evaluation is the price and a few key metrics like market cap and trading volume. However very useful information may be derived from its use cases, whitepaper, and maybe who created it.

The fundamental analysis usually helps select the right asset for that or another particular goal. There are plenty of resources about investing in crypto, most of which are based on certain rules.

Understanding Stabila Crypto Fundamentals and The vision of the project | Cryptocurrency evaluation

When evaluating a crypto project, it’s important to ensure that it has a strong and achievable vision. In crypto, there's such a thing as "vaporware," which often refers to projects with all the bells and whistles — but are unlikely to get off the ground. When evaluating a crypto project, be wary of those that seem too cool and promise too much without having a solid plan or foundation to back it up. Visionaries in the industry come up with many groundbreaking project ideas, but only a few are ever feasible or practical enough to be implemented.

STABILA is a project committed to financial system decentralization. STABILA Protocol provides a public blockchain service with high throughput, flexibility, and reliability. All of the Decentralized Applications (DApps) in the STABILA space are licensed to counter fraud and minimize risk for its users.

Stabila works towards institutional cryptoasset adoption and is driving innovation in core banking products and services across custody, brokerage, trade clearing, settlement, payments, lending, and more. At the same time, Stabila is building a new operational infrastructure for banking, which has set the foundation for resilience and growth.

Stabila asset tokenization is the process of converting ownership rights in a particular asset into a digital token on a blockchain. These can include unique hash values which represent physical assets, financial instruments, real estate, equity, bonds, fund units, etc…

By switching to Stabila digital token system, asset owners and investors can create new efficiencies like making assets more liquid by automating what was previously a cumbersome, manual process — while retaining the real-world characteristics of the underlying asset itself.

Stabila helps technology companies seeking to use cryptocurrencies and similar instruments to gain advantage in the financial services marketplace. As a prominent example Stabila DAO is a public blockchain and payment settlement mechanism that promises to reduce volatility and transaction costs to nearly zero. This effort has been achieved already.

As for its Dapps, STABILA’s ecosystem includes a DEX, blockchain explorer, wallet. In more recent months, STABILA has been trending towards decentralized finance (DeFi), with a few applications supporting fiat-to-crypto/crypto-to-fiat services.

The STABILA Virtual Machine (TVM) is responsible for executing smart contracts. It utilizes a three-layer architecture: a storage layer, an application layer, and a core layer.

Computing resources are distributed equally among STB holders.

Blockchain technology continues to evolve and improve as new innovations are created every day. The STABILA Protocol provides a safer, faster, and better way of operating than existing systems.

Using the protocol, developers can build decentralized applications on a safe blockchain that can still handle large transaction volumes required for some financial operations. As a blockchain platform that supports smart contract capabilities and documents linked with a multi-signature wallet, STABILA can handle payments, loans, digital asset management and a range of financial applications while also offering an audit trail and other user-friendly features.

Stabila Network aims to provide a simple, trustless, and decentralized solution for the issuance and redemption of stablecoins. By utilizing the functionality of smart contracts, users can directly deposit their assets into a smart contract to mint tokens that represent their assets.

The main goal of the Stabila Network is to create a decentralized stablecoin that is backed by crypto assets. The team plans to do this by creating a protocol that will allow for the tokenization of crypto assets. This protocol will be governed by users and run on a network of nodes that are incentivized to hold and use the Stabila coin.

The Stabila Network will also provide functionality which allows users to stake their tokens.

The Licensing model proposed is to allow only smart contracts that have real use and are asset backed by the underlying logic and corporate structure. In case the smart contract owner cannot keep up with his smart contract a third party shall carry liability so the customers are protected on STABILA network.

The Stabila Network token (STB) represents a unit of collateral backing on the Stabila Network protocol. STB is used as a medium of exchange for the distribution of collateral within the Stabila Network protocol.

Stabila Website | Cryptocurrency evaluation

Internet is handy when you consider looking into a project. You can check the Stabila website here. Stabila's website is easy to use and navigate. It has a crypto wallet used by more than 100k users. It is a functional blockchain explorer. It openly shares blockchain information and project details. You can read about the team. They have the white paper and roadmap.

Moreover, I was surprised to see 42 stablecoins deployed on their blockchain that is in real use. You can see those coins transacting, so people are using them. I have noticed another 14 wrappers, bitcoin, ethereum, USDT, etc... Seems they made it easy for people to move assets from other blockchains so they can be transacted on their blockchain.

I have noticed they have deployed the Oracle. So Stabila blockchain talks to the internet and gets information for their daps.

Stabila is Proof of Stake Blockchain supporting smart contracts and is fully compatible with Solidity. Their smart contracts are licensed, meaning contracts will not get deployed by just anyone or anytime, and a thorough inspection and testing process are undertaken on any deployed instance of a digital code. Stabila positioned itself as the blockchain for bank-grade digital assets so its users will never get exposed to useless or fraudulent assets.

Stabila assets are highly liquid and are listed only on fully licensed crypto exchanges.

The Team while evaluating cryptocurrencies | Cryptocurrency evaluation

Stabila is looking for the next leader, as the founder and present CEO Daniel Varzari is switching to overlook the development of the Quantum Blockchain Project (QBP). QBP is the next generation DLT layer proposed by G20 as the solution to the governance of tomorrow. Daniel's experience in the team behind the Stabila project played a significant role in the present success and wider adoption of the blockchain by banking and financial institutions. Few members of the Stabila team have been among developers of Bitcoin and Ethereum code in the distant past.

Throughout his career Igor Scvortov was the head and co-owner of a number of large companies that operate in the CIS countries, Europe and Africa. He supervised a number of significant socio-economic projects in Moldova, Bulgaria, Ukraine, Congo related to the development of electricity and medicine, in the utilities industry and in IT technologies. He also took part in the formation and management of strategic projects in the field of energy and utilities.

White Paper and Road Map | Cryptocurrency evaluation

A five-star crypto project, Stabila has a strong and well-defined roadmap.

The document will give you technical information about the concept and help you determine its merit, whereas the Stabila road map hints at plans of growth and evolution. Stabila has a clear vision.

“I read Stabila's white paper and road map, and I do understand where the value is coming from,” says Goodman.

Are Major Investors important in the evaluation of the cryptocurrency?

New technology can sustain itself if the founders have the capacity in financing it. However, it is important to get the feeling of project support. Stabila has been successful in implementing its upgrades and financially is a very sound project. Its development took on more than 4 years to the date of its launch in November 2021. The project has grown to more than 100k real investors in the first half of 2022. Lately, memorandums of understanding have been signed with the likes of HSBC, Barclays, and Lloyds. This proves to be a good sign as the project onboarded well-known investment entities. It means the project is a long-term asset.

The Community | Cryptocurrency evaluation

Many crypto projects, the supporting community made or broke the project’s potential. Community is a red flag and shall be taken out of the formula.

The enthusiasm is obsolete in a community. The community size played a role but is a manipulated tactic and means hype only. I proved that to myself and people should be careful with this factor if they want a true assessment of a project.

99% of the projects are masking their actual utility or value. People are sucked into scams, without realizing that investing in a coin or token based on hype is the ultimate recipe for disaster. Real investors don't hype projects and certainly do not stay on social media advertising them.

“Social media is the most confusing environment. You will never figure out what’s what and who is who. We have all seen Mask tweets. Be aware when a lot of people pump a project, just run away.” Susan Goodman, IT advisor and partner at MH Banking Solutions, told The New York Times recently.

Investors' goal is to reach the right perspective. Once you achieve that step up to the fundamentals.

How do you evaluate cryptocurrency value by Analyzing Crypto Pricing Data?

Once you are done with the perspective of potential crypto investment, it’s time to jump on the technical aspects. However, technical analyses in crypto do not work similarly to stocks. It brings on similarities though.

“Even after I chose the asset that matched my risk policies, I look at the charts and see nothing, when would it be to buy or sell,” says Susan. "The thing with Stabila is more clear, the longer I hold it, the more it appreciates, but it happens only because raising demand for transactions on Stabila blockchain results in a bigger demand for Stabila coins. It's simple. And if you think in terms of its 22 mill supply in circulation and the total supply of 30 mills, it won't take long for it to appreciate more given the positive trend in just transactions count."

Compared to the stock market, technical analysis is not as helpful in crypto. I'd say it's completely speculative.

My rule number one is - if there is no use in any particular asset don't even look into it.

Trading History while investing in cryptocurrency | Cryptocurrency evaluation

If we look at the trading history, we do get an overview of the price and performance of the project. In the case of most cryptocurrencies, we see slow growth over time and huge dumps.

Some of us think of orchestrations however I prefer to think of them as demand offer effects, especially when you know that only 1 mill of BTC is actively trading, while the other 17 mills are in whales' hands waiting to be dumped.

In Stabila's case out of 22 million STB in circulation, 18 million have been trading actively reaching more than 100k accounts with an average balance of 180 STB. What we see here is no whale's presence. The asset is largely circulating on the blockchain and changes its owners often.

A steady increase in Stabila price over longer periods of time is a positive sign.

Cryptocurrency market evaluation and Market Capitalization | Cryptocurrency evaluation

Experts recommend paying attention to market capitalization. Market Capitalization is the overall value of a cryptocurrency, just like if every single coin were bought. Market capitalization is literally calculated by multiplying the number of coins in circulation and the price of that coin.

In crypto, the higher the market cap the more dangerous the investment is. Though that’s not always the case. However, remember digital assets are not regulated securities and huge volatility is expected from assets with high market cap. According to Susan: “You don’t want to invest in something that has an overrated market cap. Most of the time the asset is speculative and highly volatile. Respectively the risk is huge. I don't recall a digital asset that behaves differently. Just goes up and bang, you are in a hole. If an asset has no use it is not worth investing in.”

Market Capitalizations are useful in regulated environments, where manipulations are prohibited or at least unethical. Capitalizations we see in crypto are made by amateurs and most probably are influenced or sponsored by big layers. Market capitalization is supposed to give you a clearer picture of the growth potential of a crypto asset. If you are sold wrong or manipulative information it results in wrong decisions. Cryptocurrencies with lower market caps have more potential to grow than those that are allegedly established with over-the-top evaluations. Similar to Mask hyperloop. If you consider the laws of physics and add a tablespoon of common sense, you’ll find, that the Hyperloop is hardly more than an expensive pipe dream.

“Market cap by itself is not a good marker of share or value. In the case of Ethereum and bitcoin, the market cap would be a reasonable indicator only if the information provided were true. However, we are still to get there.”, Goodman says.

Prices for crypto fluctuate dramatically, so remember that market capitalization is changing constantly. Today it is trillions but tomorrow is in millions. The crypto market can drop out entirely and it is a possibility not to be left out. Assets without any use will definitely get there, be it Bitcoin or Dodge, Shiba's, etc...

Trading Volume and Forecasting Period | Cryptocurrency evaluation

You want to glance at Stabila's trading volume. If the trading volume is low it can indicate that the asset is not liquid resulting in difficulties selling or buying it. If the trading volume is high usually means the asset is liquid and you can easily sell it or buy it.

99% of all crypto projects have a low trading volume. Even those with medium or large caps. Usually, these kinds of projects are left abandoned because of lack of use. For long-term investors trading volume alone should not affect the decision-making process. If you are betting on value growth it will not help you in the short term.

“Trading volume in crypto is difficult to measure,” says Goodman. “For example, The New York stock exchange records every single trade. You will always be correctly informed of the number of shares traded for a particular day. If you ask why? Because the stock exchanges are regulated. With crypto, it’s different. Crypto is unregulated.”

Stabila Circulating, Total, and Max Supply | Cryptocurrency evaluation

Stabila's circulating supply is 22,000,000 and is the number of coins that are circulating the market, while Stabila's total supply is 30,000,000 and is the total number of coins that will ever exist.

Blockchains like Ethereum can burn or mint coins, this is a dangerous game, and go passed them as there is no real value in them. Total or Max supply refers to all the coins that will ever be created. If the supply is not fixed it means the supply is infinite. One day your crypto assets will crash as you are at the mercy of your speculator, whether it is Tron or ether.

“From an investment standpoint, the only thing an investor cares about in the traditional markets is the knowledge of supply. If you know that tomorrow there will be an oversupply in oil, prices will go down. So be aware of projects with floating supplies. Investors always place a higher value on investments that are scarce. I would never stick with Ethereum, technically it has an unlimited supply, and it can print 18 million ETH per year.", Susan said.

Let's explore Stabila as a reference. Stabila's total supply is 30 million, while the supply in circulation is 22 million. When compared to a project like ETH or Tron, both have infinite total supply. Tron has 100bln+ while ETH has a circulating supply of 120 million. The scarcity of Stabila can easily be seen however the prices are in disbalance which makes stabila highly undervalued even considering that its price is up trending even in the crypto-winter.

Sometimes circulating supply, total supply, and trading volumes can be unreliable in case of lost coins

For example, Stabila investors have misplaced about 500k of STB. In the case of fiat currency loss, those banknotes can be recovered. In the case of crypto, it’s impossible to return the lost Stabila tokens without a private key. They will just sit there waiting for the right private key to release them.

While these metrics are all good, it’s imperative to acknowledge that cryptocurrency is a new paradigm. An unregulated market that is highly volatile. These markets are still developing. Please note, that the crypto market is completely different from the stock market. Do not rely entirely on Coin Market Cap or Coin Gecko to feed you reliable information, these are just websites that make money from advertising. They will feed you marketing information. Remember unless regulated, rules and metrics that stock markets go by don’t apply to crypto markets.

While these metrics will keep you informed, in order to perform correct crypto evaluations you have to cultivate your senses and acknowledge that cryptocurrencies are highly volatile. Moreover, the global cryptocurrency market is still developing. It has no regulatory bodies or controlling organizations. Above all, it’s important to acknowledge that the crypto market, whether it's the Asia Pacific or North America, is unregulated and stock market rules do not apply. On the closing note please allow me to acknowledge to this great audience that my article is not investment advice but a piece of thought. Don't go mad over crypto but if you feel like being part of it just go in a few dollars as I did with Stabila.

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Crypto FAQs

What are cryptocurrencies?

A cryptocurrency is a form of currency that exists solely in digital form. Cryptocurrency can be used to pay for purchases online without going through an intermediary, such as a bank, or it can be held as an investment.

How does trading cryptocurrencies differ from trading stocks?

While investing in cryptocurrencies you should know, they differ a great deal from traditional investments, like stocks. When you buy stock, you are buying a share of ownership of a company, which means you’re entitled to do things like a vote on the direction of the company. If that company goes bankrupt, you also may receive some compensation once its creditors have been paid from its liquidated assets.

Buying cryptocurrency doesn’t grant you ownership over anything except the token itself; it’s more like exchanging one form of currency for another. If the crypto loses its value, you won’t receive anything after the fact.

There are several other key differences to keep in mind:

• Trading hours: Stocks are only traded during stock exchange hours, typically 9:30 am to 4:30 pm ET, Monday through Friday. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.
• Regulation: Stocks are regulated financial products, meaning a governing body verifies their credentials and their finances are matters of public record. By contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the inner dynamics of your crypto or the developers working on it.
• Volatility: Both stocks and cryptocurrency involve risk; the money you invest can lose value. However, stocks are directly linked to companies and generally rise and fall based on those companies’ performance. Cryptocurrency prices are more speculative—no one is quite sure of their value yet. That makes them much more volatile and affected by something as small as a celebrity’s tweet.

Do you have to pay taxes on cryptocurrency?

If you buy and sell coins, it’s important to pay attention to cryptocurrency tax rules. Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, you’ll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, you’ll owe taxes on the difference.

Are there cryptocurrency exchange-traded funds (ETFs)?

Given the thousands of cryptocurrencies in existence (and the high volatility associated with most of them), it’s understandable you might want to take a diversified approach to investing in crypto to minimize the risk you lose money.

Multiple companies have proposed crypto ETFs, including Fidelity, but regulatory hurdles have slowed the launch of any consumer products. As of June 2021, there are no ETFs available to average investors on the market.

How do you buy crypto?

You can buy cryptocurrencies through crypto exchanges, such as Coinbase, Kraken or Gemini. In addition, some brokerages, such as WeBull and Robinhood, also allow consumers to buy cryptocurrencies.

Why are there so many cryptocurrencies?

Cryptocurrency is an emerging area with more than 19,000 crypto projects in existence, with very few barriers to entry. 2019-2021, witnessed a crypto market boom, with thousands of new crypto projects added.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities (and cryptos).

What are altcoins?

When we first think of crypto, we usually think of Bitcoin first. That’s because Bitcoin represents more than 45% of the total cryptocurrency market. So when we talk about any cryptos outside of Bitcoin, all of those cryptos are considered altcoins.

Ethereum, for instance, is regarded as the most popular altcoin.

Why is stabila valuable?

Part of what makes Stabila so valuable is its scarcity. Stabila’s maximum supply is limited to 30 million coins. Currently, there are 22 million coins in circulation.

To create supply, Stabila rewards crypto miners with a set STB amount. To keep the process in check, the rewards given for mining Stabila are cut in half almost every two years.

What Is STB?

Stabila (Abbreviation: STB) is a decentralized digital currency that can be transferred on the peer-to-peer stabila network. Stabila transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. The currency began use in 2021, when its POS smart contract blockchain implementation was released as open-source software.

Why are cryptocurrencies important?

Cryptocurrencies are rising in importance and not going away anytime soon.  While the initial premise of cryptocurrency was to fix the problems with traditional currencies, there are now a whole host of utility cryptocurrencies that have sprung up, thanks to the creation of the blockchain.