For the professional coin collector, coin grading is an indispensable part of collecting and keeping numismatic items. Coin grading allows one to gauge the condition of the coin and determine the worth of the coin and its collectability factor. A graded coin is more expensive than an ungraded coin of the same quality. Coin grading takes skill, years of practice, and lots of experience in looking at coins and related materials.
Various companies offer grading service. Among the most famous in the world are PCGS and NGS in the United States. I do not know if there are any local coin grading services here in the Philippines so all of my coins are ungraded. I could grade them on my own, but my grade would be biased since the coins are personally mine and being objective about the grade would be difficult. However, coin grading is a rather relative art. The same coin may be graded differently depending on who is grading the coin.
In my search for a guide on how to grade coins, I found a video on YouTube that gives a simple overview on how one can grade coins based on the international scale of coin grading. Please note that I do not own this video and I am posting this for information only.
This video is owned by Silveragecoins.com.