This is how you spot promising new coins

This is how you spot promising new coins

Did you know that back in 2010, 10,000 Bitcoins could only buy you one pizza? Now, when the price of the most popular cryptocurrency is counted in the tens of thousands of dollars, even in the worst of times, this information seems unbelievable. Those lucky people who managed to buy Bitcoins in the days when they were worth a fraction of a cent are today’s multimillionaires.

Unfortunately, Bitcoin is very unlikely to ever fall to the price of 2010, so you can buy it cheap and wait for it to cross $20,000 again. But here is the good news: there are thousands of crypto coins in the world, and some of them have every chance to repeat the success of BTC. Therefore, if you notice promising new coins in time and invest in them, you can become as successful as the owners of the first Bitcoins.

The question is how to find crypto coins that have a high growth potential and where to look for them in the first place. In this regard, we have some tips.

Things to consider when looking for new cryptos

New cryptocurrencies do not appear out of nowhere overnight. In most cases, these are well-thought-out projects developed over a long period of time by professional teams. Therefore, if you know what to look for, you will be able to identify promising new coins at the stage of their launch. For this, you should do your own research and find answers to the following questions:  

      • What will be the coin’s field of use?

Most cryptocurrencies are developed with specific functions in mind that they are to perform. Therefore, when analyzing whether a coin is worth investing, pay attention to its declared purpose and analyze whether it has long-term prospects. 

      • Who is developing the coin?

If a new cryptocurrency takes itself seriously, it is expected to be developed by a team of professionals with a solid reputation. Therefore, when choosing an asset for investment, you should pay attention to the previous projects of its developers. If a certain coin is the team's first project, focus on the background of its creators and investors involved. 

      • Does a devoted community back the coin?

One of the defining features of cryptocurrencies is their social credibility. The value of these assets is determined by the demand for them. Therefore, promising new coins usually have groups of dedicated enthusiasts behind them. If you are considering investing in certain new coins, check to see if there are communities backing them and how intensively they are developing. 

      • What is the economics behind the coin?

A white paper on a cryptocurrency under development should, among other things, include information on various economic aspects regarding its circulation. You should pay attention to the number of coins that the team plans to release, the percentage of coins that creators are planning to keep to themselves, how cryptos will be distributed among the community, plans for the release of new coins, and other such aspects. 

      • What is the roadmap of the project?

No matter how promising the project is, it can only be turned into reality if the team has a clear action plan. This plan manifests itself in a roadmap. Before you decide to invest in new coins that have not yet been released, you should review their roadmaps and decide whether they’re realistic and whether their development teams are able to meet the stated deadlines. 

Where to find promising new coins

Knowing the criteria for determining whether a coin is promising is undoubtedly important. However, you will not be able to apply them if you do not know exactly where to look for new crypto projects. Here are some options on where and how to find crypto coins with growth potential. 

      • Explore popular crypto categories and consider new projects related to them. Currently, there are several platforms that aggregate extensive information about the world of crypto, new coins, and the latest trends. For example, you can visit the list of crypto categories on CoinGecko or CoinMarketCap. In both cases, you'll see which categories are the most popular or have the highest potential for growth. After that, you will be able to browse new projects in these categories and determine which ones are the most suitable for your investment. 

     • Search for new coins directly on aggregators. In addition to listing popular categories, the aforementioned resources also include lists of emerging cryptocurrencies, which you can check out here or here. Moreover, CoinGecko also includes a Watchlist category, which offers information on coins that are gaining popularity, cryptos that are most voted by people, top gainers, and upcoming coins that have a chance of growth. 

     • Trace promising new coins through airdrops. Airdrops are marketing campaigns in which creators of new crypto coins distribute them (usually for free) to crypto addresses provided by participants. Airdrops aim to raise awareness of new coins and create hype around them, driving up demand and, consequently, pushing up their prices. Usually, you can find out about current airdrops through dedicated platforms, such as io, Airdrop Alert, and others.

These are some of the main ways of how to find crypto coins; however, this list is not exhaustive. You can always use good old-fashioned peer-to-peer advice, research topic discussions, or check out opinion pieces from top influencers to make your choice. In any case, the important thing is not exactly how you find a particular coin but how you take advantage of the opportunities it brings you. 

Bottom line 

Timely identification of promising new coins and proper reaction can be the key to your success as a crypto investor. However, in order to do this, you should make efforts: find new coins on the aggregators, research the economic principles behind them, determine whether the functions they will perform are valid, make sure that their development teams have solid reputations, check the roadmaps of the projects, and make your overall impression based on this data.

The above process sounds like a lot of work. However, if you go through all its stages properly, your chances of identifying promising new coins in the early stages will increase many times over. After that, all you’ll have to do is acquire these cryptos and hold them long enough for your investment to start generating profits.

Remember, finding new coins for investment is not about blind luck, but about a systematic approach, thorough analysis, and effort. So let all your efforts be converted into success!

Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.