Currently, there are over a thousand cryptocurrencies in the market while at the same time new altcoins are introduced daily. For crypto investors, deciding on a particular coin that they would like to invest in is a highly complex process due to the numerous choices presented to them.
CoinGecko seeks to solve this problem through collecting all the relevant information regarding a cryptocurrency and use it to qualitatively and quantitatively rank coins based on their potential to make profits for the investor. To rank a cryptocurrency, the platform collects the public information regarding the cryptocurrency and uses the information to calculate its GeckoScore. The resulting GeckoScore provides a benchmark for the cryptocurrency and is useful in comparing its performance to other similar cryptocurrencies.
Other similar websites rank cryptocurrencies. However, CoinGecko is the only one that considers a variety of metrics to rank cryptocurrencies. The metrics include:
CoinGecko uses the public source code repositories to monitor the amount of interest and effort put in the development of the coin. A coin that has a lot of development activity is most likely to continue to grow in conformity to the market trends.
To measure the coin’s community, the website uses the number of followers and subscribers it has on social networks such as Twitter, Facebook and Reddit. A coin with a strong community behind it has potential to grow as the community might submit new ideas and features that the coin can implement in order to increase the trading volumes.
The tradability and trading volumes of a particular coin in various crypto exchanges is a major indicator of its potential to grow. A coin that is easy to buy or sell is most likely to have a higher market acceptance, market share and market maturity.
Factoring the price and the market supply of a coin determines its market capitalization. The higher the market capitalization is the higher the number of people interested in the coin.
The number of search results the coin has in search engines like Bing and its ranking on the Alexa rank of the coins official website highlight the popularity of the coin.
The ranking website is still in its Beta phase but it aims at adding new altcoins, metrics, and features to its ranking every week. Users can also make submission if they want their coins to feature in the website by sending an email to https://support.coingecko.com
What makes CoinGecko different from other websites?
The website utilizes the proprietary ranking algorithm based on the metrics to rank the coins. The algorithm is always under constant development to ensure that the ranking it provides are as accurate as possible.
The website updates information using a variable schedule whereby some metrics are updated daily while others are updated after every five minutes.
Difficult to manipulate
Since the website uses a variety of metrics other than market capitalization, coins that might have low trading volumes cannot manipulate the ranking system to provide them higher ranks.