Earnity, an emerging California-based cryptocurrency firm, had raised more than $20 million in 2021. Under the guidance of fintech veterans Domenic Carosa and Dan Schatt, the company aims to create and develop an online platform that will let users earn and collect tokens as they build strong portfolios of digital assets.
It can be difficult for those thinking about buying cryptocurrency to select because many options are available. In fact, there are nearly over 10,000 cryptocurrencies today—and that number is expected to continue increasing. Several factors have to be considered when choosing what type of cryptocurrency to buy.
For starters, buyers have to study the cryptocurrency’s market capitalization, which is defined as its total dollar market value. Currently, more than half of the total market capitalization of all cryptocurrencies is comprised of Bitcoin and Ethereum. By researching this criterion, one can get an idea of the growth potential of a cryptocurrency and whether it is safe to buy.
Another thing to consider is the number of coins or tokens already in circulation in the market. Each cryptocurrency has a limited supply. And when there is an increase in demand for a particular digital asset, its price also surges. It is essential to check the total supply of a cryptocurrency, how many coins are left to be mined, and how many are already being held or traded.
The release of any new cryptocurrency is often accompanied by a white paper, which describes the coin’s purpose, the technology it uses, the problems it will solve, how it generally works, and its overall vision. Dan Schatt and Domenic Carosa of Earnity recommend only buying cryptocurrency after a comprehensive evaluation of its fundamentals through the white paper.
An indicator of the success of a cryptocurrency is its following. If a strong community and loyal supporters back a token, that shows genuine interest and belief in the currency. Before buying a cryptocurrency, check out what people say about it on forums, subreddits, and other platforms.