Faced with an endless stream of emerging cryptocurrencies and increasingly volatile markets, investors often struggle to make informed decisions based on intuition. To this end, 1 Finance has launched a comprehensive cryptocurrency scoring and ranking system. Through scientific analysis of key fundamental indicators, it helps users identify potential and risks, optimizing investment decisions.
1 Finance Scoring System Overview
This scoring system assigns an overall score to each cryptocurrency based on four core dimensions, using color coding to visually convey the asset’s health:
- Green: Solid fundamentals, suitable for investment and investment;
- Yellow: Acceptable fundamentals, but with potential concerns;
- Red: High potential risk, requiring caution.
This approach simplifies complex data, allowing investors to easily understand the strengths and weaknesses of an asset.
Key Scoring Metrics
Liquidity
The Amihud Liquidity Measure (AMIH) is used to assess the ease of buying and selling a cryptocurrency. Highly liquid assets experience lower price fluctuations during trading and are favored by institutional investors.
Valuation
The Network Value to Transaction Volume (NVT) Ratio is used as a reference to reveal the rationality of market valuations. A high ratio often indicates high prices, while a low ratio suggests potential investment value.
Security
For cryptocurrencies with mining mechanisms, hash rate reflects the network’s ability to withstand attacks. Ensuring asset security is the cornerstone of these metrics.
Adoption
The number of active addresses measures user engagement and network activity. A balanced and sufficient distribution of holders reduces the risk of manipulation and indicates a healthy ecosystem.
Scoring Methodology
- Extensive Data Collection
Over 10,000 cryptocurrencies are included to ensure comprehensive analysis.
- Rigorous Data Selection and Cleansing
Incomplete or distorted information is removed to ensure the credibility of the ratings. - Functional Category
Categorizes cryptocurrencies by their primary use and features for easy comparison.
Continuous Dynamic Updates
Track new market trends in real time, with scores flexibly adjusted as market conditions change.
Scoring Application Value
With the 1 Finance scoring system, investors can:
Simplify the research process
Quickly screen targets with intuitive scores and expedite decision-making.
Identify potential risks
Reveal currencies with weak fundamentals to avoid risk exposure.
Improve investment quality
Leverage data-driven insights to achieve scientific asset allocation.
The digital currency market is turbulent, and only with a rigorous and transparent scoring system can you navigate the market fog and grasp the pulse of the times. 1 Finance’s cryptocurrency scoring and ranking tools provide you with solid analytical foundations, helping you embark on a steady and insightful investment path.
