Bitcoin’s success and its rise over the last several years has garnered much interest in cryptocurrency, and many investors have poured their money into the idea and trade of digital currency. As with any investment, cryptocurrencies and blockchain projects come with risks. Sometimes, investors achieve impressive returns, but sometimes they suffer dramatic declines.
If you’re looking for the next big thing in the market, which sometimes can be one of the biggest challenges when it comes to dealing with cryptocurrency, there are several steps you can take to start out. There are hundreds of alternate cryptocurrencies (altcoins) to Bitcoin. How do you know which one will receive the most attention and provide the biggest returns? How do you find new altcoins in the first place? Follow these steps to find your next crypto investment.
Research the ICOs
ICOs are Initial Coin Offerings. With websites like ICOalert, developers of cryptocurrency have public places where they can list their upcoming pre-sales and public sales of their personal coin. They can also put out other information like the soft cap, team profile, and buy-in price. Savvy investors can use sites like ICO alert to plan their entry, conduct research, and plan on investing in the best events and biggest trends. ICOs are often your best opportunity to invest in a promising coin during its earliest stages, which leads to the biggest ROI.
Evaluate Your Opportunities
On top of seeking out ICOs, you should also evaluate the crypto market in general to get an idea of how unique the idea behind a coin truly is. There are millions of ways to utilize cryptocurrency and the blockchain, and new ideas are coming into being every day. It’s best to invest in coins that are offering something truly unique or ambitious and aren’t just copies of Bitcoin.
Look into the distribution rules of the currency, as well. If there are less coins, the more each coin will be worth. Is it worth it to invest a lot of money into the ICO if there’s a hard cap on the supply? Look as well into the exchange plans. For any cryptocurrency to succeed, it must be listed on an exchange. If a well-known and well-established exchange such as Coinbase, Kraken, or Bittrex has plans to list the coin, this is a great sign.
Read Its Whitepaper
The white paper is the most important determinant of a project’s ambitions, uniqueness, and seriousness. It should be very comprehensive and thorough and is a great place to start for someone who is researching a new coin. White papers will explain all plans, the ICO, and will introduce the team behind development, as well as explain the technology and purpose behind the cryptocurrency.
Navigating the world of cryptocurrency can be tough. There are millions of coins; how do you know which ones to invest in? How do you choose which emerging coins to back? By looking at the coin’s white paper, ICO, and studying the overall market, you’ll find your next cryptocurrency investment.