When I have some coin wallet or market showing RED signal I can't stop myself to buy a coin. But maximum time price goe's deeper. Lot's of time it's happening for me, maybe the same story happens to you.
So let's start discussing what factor need's to check like Volume, moving average, price history etc..
Usually buying a coin for long term, will get you out of the scenario you are facing now. Every coin has a moving pattern and one need to identify that by extensive monitoring of the price trends. But there are few things that you may want to check before investing in it,
1. Trade volume: This is a very important factor. because if the trade volume is high, that means the coin already has a market where people are engaged in trading. So you will have a chance to sell it at the right time.
2. Market cap: Higher market cap means a lot of investors are active in this coin. So the chance of price increase is also high because of its acceptance by the community.
3. Exchanges: If the coin is listed in only one exchange, then the chance of getting active investors is very less. The more exchanges it will be listed, the more visibility and investment it will get.
4. Price trend: It is also a very important factor for a good coin. If the coin is active in exchanges and scoring a good amount of trade, you need to monitor the price movement very closely to identify the pricing trend of that coin. The more accurate you can identify, the more profit you can possibly make.
I hope it helps!
