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Markets and prices
A lot of cryptocurrency enthusiasts and market observers refer to websites that measure the digital asset economy by market capitalization. A new data website is now available, Coinmarketbook.cc, which calculates the support for the purchase of a cryptocurrency based on orders placed on various exchanges.
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& # 39; Market Cap is a lie & # 39;
There are many analytical websites that record data from the largest digital assets based on value, and most focus on the overall valuation of the market for each currency. Sites like Satoshi Pulse refer to the total value in US dollars of the number of coins in circulation. For example, the price of bitcoin cash (BCH) is about $ 140 for 1 BCH, with a circulating offer of over 17 million coins, giving the currency a market valuation of about $ 2.46 billion. This places the bitcoin money markets in fifth position among over 2,000 digital assets in the crypto-economy. But Coinmarketbook it measures the value of digital resources in a completely different way, because it focuses instead on the purchase support for cryptocurrencies and determines the value of each currency in this way.
"Market capitalization is a lie and buying support tells the true story," explains Coinmarketbook on the front page. "Buy support ratings separates investments from gambling games and buys support analyzes to determine if the current price will be maintained."
Coinmarketbook is very different from data sites that show market limits. At the time of publication, the bitcoin core (BTC) was still number 1 on the Coinmarketbook list, as it had a support rating of around 100 percent. Things are drastically different from those of standard markets, hence the BTC is followed by ether with 21.68% purchase support, eos at 8.73% and the ripple of 8.65%, while the consumption of raw materials reaches the top five at 3.78%.
The statistics also show how purchasing support is measured based on the number of markets in which a currency is listed. For example, BTC is listed on 25 markets, but other currencies have 35 bullish market positions.
Variance of market data
Coinmarketbook lists many markets, but does not exactly match the amount of markets exchange data used on sites like Coinmarketcap.com and Satoshi Pulse. For example, Coinmarketbook lists a total of 16 markets, including trades like Bitmex, Bithumb, Huobi and Bittrex. However, the site is missing information from today's major BCH exchanges, which include Binance ($ 12.4 million), Coinbase ($ 4.1 million), Hitbtc ($ 4 million), Kraken ($ 3.5 million) and Poloniex ($ 1.4 million) ). This is clear to see on the Coinmarketbook website. However, the creator of the site recently He said on Twitter, other exchange data are coming.
Coinmarketbook follows the guidance of a handful of other analysis sites that classify cryptocurrencies based on various criteria, such as fair market value and "honest" global trade volumes. Coinfairvalue.comfor example, it is a platform that evaluates fair market value rather than focusing on speculation.
The creator of Honest Coinmarketcap spreadsheet, meanwhile, believes that global cryptocurrency trading volumes are often inflated to excess. Volume trading figures for specific currencies such as BTC and ETH are exaggerated up to 80%, while volumes of digital assets such as BCH and XRP have declined from 43% to 70%, he says.
Deceptive order books
Given the lack of data for a certain number of exchanges, Coinmarketbook should probably add more analyzes to become more accurate. Cryptocurrency enthusiasts should also make evaluations based solely on purchase support and order books with a pinch of salt. Order books can be misleading, as not all purchase and sales orders are real.
Many orders on trading platforms have a lot of orders, but good traders know that some of them are bluffing. An individual can place an order to purchase or sell an asset, but this does not mean that he or she will execute the deal at the appropriate time. Some traders use fake orders to make the market move or evolve in certain ways, which is why evaluating a currency with this type of support can be misleading. Traders use the order book depth charts for some clues along the way, but relying entirely on them for trading can be very risky.
What do you think of Coinmarketbook.cc and how do you evaluate coins with support for order purchases? Let us know in the comments section below.
Images via Shutterstock, Coinmarketbook.cc and Bitstamp.
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