Markets

Cryptocurrencies: Who's In First?

People usually rate cryptocurrencies by their prices, but have you ever wondered how analysts create their grades? Today we’ll talk a bit about what goes into those high-grade investment reports. The Weiss crypto rating agency recently published its entire methodology, and it turns out they have some pretty strong opinions about it.

Back to Weiss Ratings. It all starts with collecting thousands of data points and passing them through a complex set of yes or no questions. Each coin is graded in the same standardized way, allowing to compare any kind of asset with each other.

The analysis is based on factors like decentralization, technology and adoption levels, and they try to stick to hard numbers as much as possible. They also consider the risk posed to investors.

For example, Bitcoin was originally graded C+, just because of the volatility of the market. Without this factor, it gets an A for its very strong adoption.

For example, the latest report, EOS, XRP, and Ethereum sit together with Bitcoin in the top 4, when they’re graded for technology and adoption. These four coins all have fairly big communities, giving them grades of A or A-minus.

But those grades change if we consider risk. Most grades are lower, and BNB suddenly rises to the top and takes Ethereum’s place due to its lower risk rating.

In all of this Weiss still remains positive about the market, which has grown in use tremendously over the last 12 months.

As you may know we at Cryptobriefing also have our own analytic reports and rating system. You can find an explanation under each and every report, which we give for free on our website.

These reports are just as rigorous, and they focus on everything ranging from the addressable market to the team and technology potential. Each of the 7 factors is then summed to come up for the final grade, which is updated regularly as new developments come to light.

Now I’d like to hear from you. How do you analyze the crypto market? After you subscribed, head over to the comment section, give me a shoutout and let me know.

Remember that a s the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.

By Yoshiko for InvestDiva.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kiana Danial

Kiana Danial is an award-winning, internationally recognized personal investing and wealth management expert. She is a highly sought-after professional speaker, author and executive coach who delivers inspirational workshops and seminars to corporations, universities and entrepreneurial groups. She is a frequent expert on many TV and radio stations and has reported on the financial markets directly from the floor of NYSE and Nasdaq. She is a weekly investment expert guest on Tokyo’s #1 Investment TV Show. She has been featured in The Wall Street Journal, TIME Magazine, CNN, Forbes, The Street, and numerous other publications. Kiana’s book "Invest Diva's Guide to Making Money in Forex" was picked by McGraw-Hill only two years after she first moved to the US, and was an immediate domestic and international success. At a young age, she has won numerous awards including Best Financial Education Provider at Shanghai Forex Expo in 2014, New York Business Women of Influence Honoree in 2015, and Pro Bono Humanitarian Award by IA Bar Association in 2013. Born and raised in Iran to a Jewish family as a religious minority, she was awarded a scholarship from the Japanese government to study Electrical Engineering in Japan, where she obtained two degrees in Electrical Engineering and researched on Quantum Physics in classes conducted in the Japanese language. Being the only girl and foreigner in her classes made her decide to dedicate her life to empowering minorities, especially women in male dominated industries. As the CEO of Invest Diva, Kiana’s goal is to empower and educate women to grow their wealth by investing like a ROCK STAR.

Read Kiana's Bio