The market is oversaturated with thousands of cryptocurrencies that we see how many of them end up sinking and others are catapulted to success. However, why?
Currently the cryptocurrency sector is plagued by thousands of them, some with more success than others as we are already seeing. Some of them collapse shortly after leaving and end up disappearing and others, like Bitcoin, for example, have remained in the top 1 since 2008.
Note, as we have already entered from ComputerHoy, that it is more or less easy to create them, with tokens being the easiest to generate. In fact now one can create a cryptocurrency in a matter of minutes.
Now, knowing all this, Why do some cryptocurrencies succeed and others fail? One of the most important factors is oversaturation. Although the cryptocurrency market is relatively young, it is already saturated with too many investors and cryptocurrencies. That is why this market, being so competitive, it is almost impossible to succeed.
On the other hand, it is already well known by everyone that volatility is one of the main characteristics of these digital currencies. The price of these will depend on the law of supply and demand. The big problem is that the demand for an asset changes regularly and, with respect to new assets, the interest just as it rises like foam, it sinks.
As in the case of cryptocurrency failures, there are a number of factors that contribute to the success of a coin or token. The state of the market at the time of the launch of a certain asset can be a particularly determining factor for your success. It is best to wait for a moment of confidence and many investors.
The application of a coin or token can also help your success. If this, in any way, is useful to the investor for his projects, he will surely invest. In addition to these factors, there is another very important point to take into account: marketing. Good marketing is almost a sure hit.
Of course, even knowing all this, the cryptocurrency market is highly unpredictable and something that we would consider will not succeed, they end up inflating their prices and vice versa.