How to find and detect the best coin to invest

Which coin to invest?

Finding the Next coin to lay your investment on

You may ’ve probably thought it at one point or another: “I missed the Bitcoin payday. How do I conclude on what cryptocurrency to invest in now that I have the market idea?”

The  unpleasant news: It’s unlikely that any other cryptocurrency will see the same astronomical growth that Bitcoin experienced over the last few years, and impossible to predict the trend.

The good news: There’s still abundance of opportunities to invest in up-and-upcoming cryptocurrencies that could potentially bring you 10-100x returns.This arrives with a heavy note of caution, because as you may know, cryptocurrencies are incredibly volatile. This is not an investment advice though, and you should gain/lose money based on your own research and intuition.

In this article, we’ll be going over some basic strategies you can follow when searching for what cryptocurrency to invest in next. We’re focusing on high risk, high reward options here. If you’re looking for general investment tips, you should check out our article on how to build a proper cryptocurrency portfolio instead.

Scour Initial Coin Offerings (ICOs)

Initial Coin Offerings (ICOs) have rapidly become the standard for blockchain startups to raise funding for their  respective project. In an ICO, the team hosts a crowdsale in which you purchase tokens that you can use on their platform. You can also trade these tokens in the secondary market (exchanges) after the ICO.

For example, Golem held an ICO to distribute the first GNT tokens. The purpose of these tokens is to purchase computing power in the Golem network, but traders also buy and sell them on exchanges.

Participating in ICOs can be a lucrative trading strategy. If you invested in the NEO crowdsale (at the time the project was called AntShares), your return on investment (ROI) would be ~160,000% currently. Populous, about 5,000%. OmiseGo, around 4,000%. You get the picture.

ICO gains do come with the highest amount of risk, though. The majority of ICOs will fail, and already almost half have done so already.

ICO Research

It’s important that you do your due diligence when picking what cryptocurrency to invest in pre-ICO. There are a ton of things to look at when evaluating a cryptocurrency, but the most important attributes are:

Team and advisors – The team  or individual should posess experience in blockchain technology or at least the industry that they’re targeting. Preferably both. Having reputable advisors is also a strong sign that the ICO could succeed.

Clear problem/solution – The project’s white paper should clearly define what problem the project is all about and aiming to solve and how the cryptocurrency solves it. Make sure it’s not just a document full of marketing BS.

Token distribution – The team should be distributing over fifty percent of the tokens to crowdsale participants if not much, much more. Be hesitant about projects in which the team and advisors keep a significant proportion of tokens.

Other things to take note of are: any notable partnerships, whether the team has already created a product, and the size of the industry they’re targeting. All of these things could lead to a favorable investment.

Check Lesser Known Exchanges

Even if you missed your chance to engage in a superb ICO, you can definitely  invest once the coin hits exchanges. At this period, there’s often a brief spike followed by an immediate dump as ICO investors look to cash-in on short-term gains. This is a prime opportunity to get coins you’re interested in for ICO-level (or even lower) prices.

Beyond the short post-ICO period, you still have enough time to invest in a coin before major exchanges begin to list it out. Cryptopia and decentralized exchanges such as IDEX are goldmines for the various types of coins. The same research strategies mentioned above apply to coins in this category as well.

IDEX exchange

Search through coins with a small market cap (<$100 million) that haven’t been listed on a large exchange like Binance yet. You can check CoinMarketCap to see which exchanges coins are on. Make sure you research appropriately and find coins that you believe to possess solid fundamentals.

Once you’ve found a coin you’re confident in, buy it, and (this is the hardest part of all) wait!!. It could take some days,some weeks, or even months for your coin to reach a respectable amount of awareness. If you truly believe in the fundamentals of the coin, though, this timeframe shouldn’t matter. Once the coin joins a major exchange, feel free to trade it accordingly.

Time Important Events

Another unique and popular tactics in selecting what cryptocurrency to invest in is to choose coins based on project roadmaps and event calendars. This is a short-term strategy though and usually comes much harder to exe cute than the other ones covered.

The price of cryptocurrency tends to ascend after an important partnership declaration or development milestone. If  certain projects or paper is being followed on Twitter or are active in their Telegram channel, you usually find out about these announcements ahead of the less involved general public.

With that information, you can sometimes buy into a project early and ride the wave up following the announcement. This has some potential downsides, though. Correct timing is incredibly difficult to accomplish. And, in a bear market, even the most impressive announcements can get crushed under the negative sentiment withing short time

Additionally, the rest of the market may not react to the news the way that you expect. A recent example of this is Verge’s PornHub partnership announcement. While some supporters saw this as positive news, the majority of the market didn’t, and the price crashed accordingly.

Stay Vigilant and be watchful

Most significantly,all needed is just to stay vigilant when looking for what cryptocurrency to invest in. New and fresh investment opportunities occurs every day when you’re actively and seriously searching for them. Join subreddits, follow crypto traders on Twitter, constantly research new projects – in essence, wrap yourself in the blockchain space. You never know what stones you’ll stumble upon.


Please enter your comment!
Please enter your name here