We asked Travis Kling, founder and CIO of Ikigai Asset Management, what his go to indicator is for investing in cryptos.
He gave us these:
– Cross Coin Correlation: How correlated are all other cryptos to Bitcoin. Low correlation is a sign of a healthy market. The crypto market is known to trend with Bitcoin. If correlation decreases that means coins are able to survive without Bitcoin needing to perform well.
– Trading Volume: Increasing trading volume shows higher quantities of any particular coin are being traded back and forth. This means more interest is coming into the market and therefore could mean more participants.
– On-Chain metrics like transactions per day and active wallet addresses: This shows the technology is being used, people trust it, and there is a need for more innovation.
Watch the full interview here: https://youtu.be/baPOC2yoK0M