Using CryptoScores to Invest

Intro to CryptoScores

CryptoScores was founded to provide unbiased and in-depth statistical, financial, and qualitative information, delivered through a simple, organized channel. Cryptoscores believes all users should have access to educational information to invest in these transformative technologies and currencies, and compiles trading materials for investors at all stages, whether they are just learning about blockchain technology or are cryptocurrency experts. In response to a cryptocurrency market that is extremely volatile and suffers from a shortage of transparent information, the Cryptoscores Risk Rating system was created to help maximize investor's returns, and protect new traders from potentially harmful purchases

The Cryptoscores Risk Rating system considers a variety of criteria, and compiles all of that information into a standardized, 0-10 Number Rating.

The "CryptoScore" is the average of the Volume, Volatility, Liquidity, Industry, and Application scores.

Understanding the Scores

In order to utilize CryptoScores Risk Ratings to maximize returns and make smart investments, a trader must first understand what lies within each unique Coin Ratings. Each CryptoScores Risk Rating is made up of 5 categories:
Volatility - Represents the average deviation between the daily high and low prices, as proportionally measured against the daily market price. The Volatility measures how much a coin’s price fluctuates on a daily basis. If a coin has a HIGH Volatility score, then the coin is relatively stable in price. If a coin has a LOW Volatility score, then the coin’s price changes drastically on a daily basis.
Volume - Measures the average tradability of a coin based on historical price and volume data. The volume score reflects how strong and often the coin is interacted with on trading exchanges in recent months. If a coin has a HIGH Volume score, then the coin has been realizing high trading activity in recent months. If a coin has a LOW volume score, then the coin hasn’t experienced large growth recently.
Liquidity - Reflects what percentage of the world’s top 15 cryptocurrency exchanges facilitate transactions of each given coin. This information reveals how available a coin is to purchase and easy a coin is to buy or sell on the open market. If a coin has a HIGH Liquidity score, then it is accepted by most or all major cryptocurrency exchanges worldwide. If a coin has a LOW Liquidity score, then the coin is not traded on many platforms, and may be difficult to actually buy or sell.
Industry - Based on a number of sub-criteria, which mainly entails information relative to the coin’s Current Capital, Commercial Investment, and Industry Support. This score reflects how well the coin is performing from a business standpoint, and how much support the coin has received through investment and commercial partnerships. If a coin has a HIGH Industry score, then the coin has gathered ample investment to fund future developments, and has already began working with established commercial partners. If a coin has a LOW Industry score, then the coin has received little industrial support, and has not begun working with many customers or commercial interests yet.
Application - Based on a number of sub-criteria, which mainly entails information relative to the coin’s Current Application, Potential Growth, and Technological Strength. This score reflects the actual value behind the use case and technology of a coin. If a coin has a HIGH Application score, then the coin is already being used across a number of potential use cases, and has a strong technical base for future development to expand upon. If a coin has a LOW Application score, then the coin is not being used actively as of yet, and has minimal or no technical specifics to separate themselves from the rest of the industry.

Using Cryptoscores to Invest

Understanding the score breakdown is key towards maximizing the use of any Cryptoscore Risk Rating, but it is also simple and easy to trade with the overall Color Score. Refer to the following guide for general trading advice:

In general, the higher the rating, the lower the relative risk.

Typically, coins that are a higher overall score are Less Risky than coins that are have a lower overall number score. Additionally, there is typically more information available to the public with higher rater coins as opposed to lower rating coins. With that said, lower rated coins often also hold a higher possibility of huge returns, while high rated coins are likely safer investments, and may not net as large of a return as lower level coins. In order to maximize any crypto bag, it is important to diversify your portfolio with both Risky and Less-Risky cryptocurrencies.

Now go use Cryptoscores Coin Ratings to Invest Like a Pro!