PETALING JAYA: CoinHako’s head of market research Elvis Hee said one should not just look at the price but the total market capitalisation of the cryptocurrency when determining the potential of the cryptocurrency.
He said there is definitely potential in other cryptocurrencies apart from Bitcoin, as there is a need-and-use case for Blockchain in each industry, such as Ethereum and Ox Project/Kyber Network, which mainly operate at the fundamental/protocol level that allows other companies to build on top of its platform and services, thus benefiting the underlying protocol.
“With increased partnerships and adoption of the protocol it supports the ecosystem of decentralised applications at the secondary layer as they leverage of one another within the platform. This contributes to the overall success / sustainability of the protocol and make difficult for the protocol to fail in the long run as other companies rely on it.”
With thousands of cryptocurrencies currently in the space, there are many opportunities to invest but what would be the best investment or return?
Hee said there are a few indicators that investors can look out for when it comes to investment decision making.
He explained that projects that build at the protocol level are fundamentally more valuable as compared to the application level.
“Protocols are like the foundation to building blocks. Every building needs a strong foundation to build on top of it, if not it will not stand and protocols provide this underlying support for applications to build on top of. ”