Unlocking Crypto Investments Success: Insights from a Pivotal Study

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more

Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


Active Wallet Addresses: The Driving Force of Crypto Investments Success

Unlocking Crypto Investment Success: Insights from a Pivotal Study

In an extensive study spanning from 2010 to 2023, researchers scrutinized the top 100 cryptocurrencies, unraveling key insights into the factors steering long-term crypto prices. A groundbreaking revelation emerged: a staggering 94% of crypto investments witnessed a surge in value correlated with the number of active wallet addresses. In essence, as user engagement climbed, so did the cryptocurrency prices—a fundamental correlation long emphasized.

Traditionally, the focus on active wallet addresses, comparable to Daily Active Addresses (DAA) or Monthly Active Addresses (MAA), is often overshadowed by more conventional metrics on major crypto listing sites. However, these metrics, akin to a business’s customer base, present a pivotal determinant of a crypto’s worth. Unearthing this number should be a priority for discerning investors seeking a comprehensive view beyond the commonly reported trading volumes.

Number of Transactions: An Amplifier of Value

Analyzing the data further, researchers found that a higher number of transactions corresponded to elevated crypto prices in nearly half of the studied cases. While this correlation aligns with intuitive logic, it is deemed less reliable than user numbers. Manipulating transaction counts, such as through wash trading, introduces an element of volatility. The analogy to social media networks comes to light: much like active users snowball network growth, the number of transactions gains significance when the user base is expanding.

Unlocking Crypto Investment Success: Insights from a Pivotal Study

In contrast to widely monitored trading volumes, focusing on transaction counts reveals a more accurate representation of a cryptocurrency’s utility. Would you prefer a currency exclusive to a select few affluent individuals, creating the illusion of high monetary circulation, or a currency embraced by the masses? This divergence defines the disparity between trading volume and the genuine number of transactions.

Limited Supply: An Additional Catalyst

The spotlight often shines on Bitcoin’s finite supply—only 21 million will ever exist. The study attests that cryptocurrencies boasting limited supplies possess the potential for increased scarcity and, consequently, augmented value. However, it’s vital to underscore that limited supply alone doesn’t guarantee a sound investment. A token with restricted issuance but lacking user engagement is akin to a hollow replica.

To distill the insights:

  • Prioritize investments with a burgeoning user base.
  • Consider transactions as an added positive if the user base is thriving.
  • View limited supply as a potential accelerant for investments robust to user engagement.

While acknowledging these metrics as potent signals, comprehensive due diligence must not waver. Team competency, technological prowess, regulatory considerations, and potential pitfalls also warrant thorough evaluation. However, if a cryptocurrency passes these tests, the combination of active users, transactions, and limited supply becomes a compelling sign of sustained growth.

Unlocking Crypto Investment Success: Insights from a Pivotal Study

Turning Knowledge into Gold Investments

In the realm of crypto investing, valuable insights occasionally lurk in scholarly verbosity. This report, however, stands out as a beacon of clarity amidst the academic intricacies. Leveraging this trove of information involves:

1. Prioritizing active wallet addresses as a catalyst
2. Acknowledging transactions and limited supply as supplementary enablers

In a final noteworthy revelation, the study establishes a robust correlation between mature crypto investments, such as Bitcoin and Ethereum, and venerable gold. Unearthing winners in this context is akin to securing a stake in the digital gold rush.

You can purchase Lucky Block here.  Buy LBLOCK

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, presented product, or event. We are not responsible for your investment results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *