Finding the next cryptocurrency with good returns is time-consuming since we have new products joining the market monthly. Some of the projects usually fail and therefore an investor needs to be careful before splashing money. This is why investing in cryptocurrencies is risky.. Despite the risks involved, cryptocurrencies are still attracting investors.
Before investing in any project, you need to watch certain signs before as a means of earning the maximum. This guide has tips that can help you determine the next 100% cryptocurrency.
While looking for the next cryptocurrency, the price is an important factor to consider. The evolution of price since the cryptocurrency hit the market will give you an idea about its future. Tracking the price of the cryptocurrency can also tell you if its a bad investment. You can track the price on platforms like CoinMarketCap.Cryptocurrency price is determined by the market demand and circulating supply.
Circulating supply is the total amount of coins in circulation at the moment. Note that this figure does not include cryptocurrencies yet to be released. A sharp increase in the circulating supply can lead to a dramatic change in the cryptocurrency price in a downward direction. On the other hand, market demand refers to how much people are willing to pay for the cryptocurrency. The higher the demand the higher the price. Having this knowledge can help you determine the crypto’s future.
If its an ICO look at the cryptocurrency significant features since they will have a direct impact on the price. If the hype around the ICO is about nothing you can consider ignoring the crypto since it does not offer anything substantial to affect the price positively. Look for reviews about the ICO to gauge the hype.
The Team Behind the Cryptocurrency
Researching about the team behind a cryptocurrency will give you an idea about the project’s future. You need to understand the background of the team and the vision they have. Look at the problem they are trying to solve with their project. Determine if the team has prior experience in the cryptocurrency field. Note that it’s not essential, but it helps if it has expertise and knowledge in the industry.
Find out if the team is engaged with the community and providing timely updates? Are they on track to deliver their roadmap? You can look at their community engagements through the website.
Furthermore, look at the team’s track record with previous projects. If the projects are a success, then this is a good sign. However, if the previous projects were marred with controversy or failure, this is a red flag to consider.
Getting such information is easy thanks to the digital world we are living in. Browse through the internet and check out information about the individual projects. Use platforms like LinkedIn to track their career path. Additionally, information about the team can be found in the whitepaper.
The Cryptocurrency Goal
The purpose of a crypto project will help you make a decision to invest in it or not. To get information about what the project plans to do, look at the whitepaper which is published on the official website. The goal of the project is usually written by the creators. Ensure the project’s goal has relevance to the real world.
Whitepapers tend to be a little technical at times, but you can also read more in reviews. In the event the white paper is centered on marketing, then that is a red flag.
With a clear picture of what the project wants to achieve, you will be able to determine competitors. Look at the competitors and what they are trying to do to stay ahead. The cryptocurrency of your choice should be able to stay ahead of the game. In most cases, new crypto projects tend to build on the weaknesses of the already existing projects.
Checking the Cryptocurrency Website
Most of the cryptocurrency projects have an online presence through websites. Checking a crypto project website plays a vital role in determining if it’s worth it. Look at how often the team makes updates regarding the project. This information is usually found in the blog section. Furthermore, check out if the website has sufficient information about the project. An authentic project should have the team members information and the goal it seeks to achieve listed on the website.
Check if the website has a community section, where you can interact with other investors regarding the project. The community is a crucial indicator of a cryptocurrency potential. Additionally, a project should be able to publish information about the technology that supports the cryptocurrency. If the website is not resourceful enough, then it is a red flag to note. Additionally, a cryptocurrency project website will have information on other projects by the company. Such information is an indicator that your money has the capability to give you maximum returns.
Check the Business Behind the Cryptocurrency
Every cryptocurrency has a business model behind it. To determine the potential of a cryptocurrency, look at its underlying business model. Look at how the project is unique. Currently, the market is flooded with coins that simply recreate the “decentralized currency” model. Look at the business model that puts a new spin on an old concept or seeks to accomplish something ambitious. If you see regurgitated language on the project’s website, stay away because it might lead to money loss.
As mentioned earlier, cryptocurrencies are coming up monthly and many factors need to be considered before settling on an asset that will give you 100% returns. Focus on aspects like supply and demands as it will tell the potential earnings.
Regardless of the outcome in your digital coin investments, you must be able to handle the risk that comes along. By doing sufficient research through observing price and volume chart data, you may be able to time your entry and exit with enough precision to spend a little and gain within the cryptocurrency world.
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.