The word Alt's Quality sounds general so it has to be defined. Do you mean good for investment:
- Medium term: more trading volume mean more easily to liquidate it, which is a more important indicator than the speed of making a profit.
- Short term: It may be a good indicator but it will be good to know why the price has changed and not to predict the future.
- Long-term: Unfortunately, most altcoins fail to be store of value in the long run. you must monitor technical developments, speed of problem-solving and the unique advantages that the currency offers more than trading volumes.
Thus, in general, we cannot consider it a good indicator of the quality of altcoin, but it indicates that the currency is still alive and can be easily liquidated.
Topic: Using fiatleak.com to Screen Possible Altcoin Buys (Read 81 times)
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fiatleak.com is a website that has been around for years, but has evolved rather nicely. I have been looking (somewhat randomly over the past couple of days) at the site and monitoring it to get some ideas as to Alts that may be of interest to me, I am still a BTC Maximalist for now, but willing to take a look.
A notion has occurred to me: it might be possible to get an idea of "quality" Alts based on the exchange activity (that's what it apparently shows, sales of crypto for fiat via exchanges) shown at the site.
This might yield similar information to looking at $-volume of these Alts at coinmarketcap.com, that would make sense, but I have yet to try and correlate the fiatleak graphics with the data at coinmarketcap.
My question for you guys would be: Would relatively larger trading volumes roughly correlate with that "Alt's Quality"?
The Alts with the greatest apparent volume bought would be, in rough order: ETH, ADA, LRC & MATIC (tied), LINK/ALGO/ATOM (roughly tied), so would appear to be the "quality plays".
Your thoughts?
(I exclude SHIB and DOGE from this question, as clearly they are Alts with no "intrinsic value" (I'm just interested in making money, could G.A.S. about jokes & memes, etc.). I also exclude LTC, as BTC serves me already pretty well as a purely MONETARY function.)
Edited for clarity
fiatleak.com is a website that has been around for years, but has evolved rather nicely. I have been looking (somewhat randomly over the past couple of days) at the site and monitoring it to get some ideas as to Alts that may be of interest to me, I am still a BTC Maximalist for now, but willing to take a look.
A notion has occurred to me: it might be possible to get an idea of "quality" Alts based on the exchange activity (that's what it apparently shows, sales of crypto for fiat via exchanges) shown at the site.
This might yield similar information to looking at $-volume of these Alts at coinmarketcap.com, that would make sense, but I have yet to try and correlate the fiatleak graphics with the data at coinmarketcap.
My question for you guys would be: Would relatively larger trading volumes roughly correlate with that "Alt's Quality"?
The Alts with the greatest apparent volume bought would be, in rough order: ETH, ADA, LRC & MATIC (tied), LINK/ALGO/ATOM (roughly tied), so would appear to be the "quality plays".
Your thoughts?
(I exclude SHIB and DOGE from this question, as clearly they are Alts with no "intrinsic value" (I'm just interested in making money, could G.A.S. about jokes & memes, etc.). I also exclude LTC, as BTC serves me already pretty well as a purely MONETARY function.)
Edited for clarity
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