A coin can be an unmounted, round metallic object, usually manufactured from plastic or metal, used mostly as a means of monetary tender or trade. They are usually standardized in mass quantity and made at a central mint to be able to facilitate quick trade. Sometimes they are also issued by an issuing government. Usually coins contain images, text, or numerals in it.
There are different kinds of coins.
OP The two most typical are the penny and the gold coin. Other kinds are the platinum coin, the silver coin, the palladium coin, the aluminum coin, and also the digital coins. Actually there are several dozen forms of digital coins, including Peer-to-peer (PTP) cash, mobile money, electronic check, e-gold, and colored coins. Let's check out each one.
Peer to peer cash involves making use of your computer and the Internet to transfer funds from one online location to another. You could do that without ever leaving your house. There are a few different ways to go about setting up a Peer to Peer network.
The simplest would be a software such as the Shapefile software that creates a "chain" of addresses between various computer "servers".
Another popular way is by way of a smart contract. A good contract is a special sort of agreement between several entities that allows for the transfer of funds over the Internet, rather than by way of a coinbase. For example, one might develop a Facebook profile which allows users to send a message to other Facebook users. Each time a message is sent, the other Facebook users will confirm their receipt of the message.
Another option for an investor will be theICO, or Initial Coin Offering. That is much like an IPO in the real world, except that with theICO, the investors aren't necessary to deposit any cash up front. Rather, they consent to "buy" a certain number of the tokens being sold in an auction. Once they have purchased all of the tokens on offer, they own the digital asset named following the sale. This option is frequently used to finance startups.
Lastly, there are two market caps. Market caps are simply just the estimated value of the digital coins being sold. Market cap calculation is very complicated and actually includes a couple of different methods. The most famous is the arithmetic mean, which uses the average price per coin during the last three years to estimate the value of the future supply. This doesn't account for future supply and the existing supply and demand of the coins. It only factors in the supply that people currently see and it does not factor in any potential future supply.
I prefer using the discounted asset theory of determining market value. With this theory, you simply add up the present prices of each of the coins in your collection and calculate the worthiness. Discounted assets are those which aren't necessarily liquid, but which are easy to obtain and can not immediately lose their value. For instance, I would add up the present market price of each of the Metatrader EAs that is currently being sold and their combined value. This gives us our discount rate. This rate may be the percentage of your investment that people are willing to pay for each token as we decrease the road.
So what in the event you consider when deciding which tokens to buy? From my perspective, you should always try to strike the balance between an active and passive investment.
If you discover that an active strategy is more profitable, you then should always aim for high-ticket items such as for example Metatrader coins and create a diversified portfolio. However, in the event that you only have money in to your pocket and wish to get started quickly, then I recommend choosing low-priced tokens and see how they perform.