Pay attention to the statistics for the key pages of the coin’s website when thinking about investing in a new coin.
You can monitor these stats in addition to periodically checking the announcement thread for the coin on forums such as BitcoinTalk.org. Thread activity on the forums will show you the level of activity of the community, which is people who already understand the basics of the coin. This is very different from people who hear about the coin for the first time and come to its main website.
You can get these statistics from the websites such as www.alexa.com The stats will show you the global rank of the website, its rank in its home country, daily time on site, daily pageviews and bounce rates.
From this information, you will be able to see whether the coin website is going up or down in the rankings of websites, what engagement the website gets and so on. This will show you how effectively the team behind the coin is promoting its venture.
Websites such as Alexa can give you a lot of extremely useful information, including even details such as the level of education of website visitors. Although some of this information may be hard to analyze, knowing as much as possible can help you make better decisions about investing in a coin.
Global node count
For most coins, nodes are simply full copies of the core client software that are currently online. The more nodes you see online, the more secure the network. Each node is yet another full copy of the blockchain of the network, which means that if something happens to other nodes, the network will still be able to check the new transactions and add them to the blockchain of the coin.
The number of nodes is an important factor because it is an indicator of the health of the network, yet you need to take it into consideration together with the state of the development of the coin. When a developer launches a new coin, it is perfectly okay for the coin to have just a few nodes. As the network adds more nodes, it will become more safe and secure. The more nodes you see on a network, the better. For a successful ICO, you should see at least a few hundred nodes within the first few months of the launch of the ICO. The number of nodes should also be increasing. If after several months you see the number in the tens and it is not increasing, it may be an indication of a problem.
The number of nodes is easy to check on blockchain explorer websites such as bitinfocharts.com. It is possible that you will not be able to track the number of nodes for a brand new coin for a few weeks in the beginning of the launch.
The node count is a very good indicator of the maturity of the network. In the beginning, the count should be growing as early adopters are downloading and installing the software. Once the network reaches maturity, you can expect the count to become somewhat stable.
Just like in any other quickly growing market, the world of cryptocurrencies has a lot of newcomers that promise revolutionary updates to the idea of bitcoin. Some of these ideas sound extremely complex and hard to understand.
Fundamentally, cryptocurrencies are a new form of assets. While the form is new, the notion of an asset is not and the old-fashioned rules of investing apply to cryptocurrencies, too.
One of these rules is not to invest in something you don’t understand. The ideas behind bitcoin are very simple. They are the ideas of freedom, transparency, and individual responsibility. If bitcoin were not decentralized, it would be just another money transfer service. For this reason, when you are evaluating new coins, pay close attention to whether they are changing the most important ideas behind bitcoin or not. Also, use common sense and stay away from things and concepts you don’t understand because to be revolutionary an idea doesn’t have to be complicated.
Apple has been proving this fact with its products for over a decade with iPod, iPhone and other products. iPod was not the first music player. It was also not the most complex, yet it offered elegance and simplicity that other products didn’t have. iPhone was and is a combination of an Internet browser, phone, music player, and camera. All these things are simple ideas that existed before the iPhone.
This is why when you see a company that is trying to reinvent everything from scratch and is rejecting even the simplest ideas that have been known to work for a long period of time, be very careful, use common sense and gather a lot of information before you invest.