The advent of Bitcoin and its stellar increase in recent years has caused investors to deposit their money in cryptocurrencies by the millions. In what can only be described as the greatest investment opportunity since the dot-com boom, cryptocurrencies and blockchain projects are achieving very high valuations in quantities. The market capitalization of Bitcoin and five other higher cryptocurrencies has exceeded $ 500 billion. While this trend is largely speculative, it shows no signs of stopping and has made many people extremely rich.

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Now, others looking to emulate the results of their peers are looking for the next big thing in the market. Bitcoin is still a great investment , but there are currently hundreds of alternative cryptocurrencies, known as “altcoins”, that achieve higher percentage gains. Often, the newest ICO, or initial supply of coins, represents an opportunity to multiply one’s investment by a factor of ten or more. However, it is difficult to predict which coins will receive the most attention and why. With the right recipe, a cryptocurrency can achieve sustainable growth and maintain it once the bubble appears.

Find the ICO

The first step is to discover what initial currency offers are emerging. With sites like ICOalert , developers have a place to make a list of their next prior sale and public sale. They can also include other information such as the maximum limit, the purchase price and the team profile. Smart investors can use sites like these to plan their entry, research and have their money ready to invest in the best events.

The popularity of the ICO has skyrocketed with figures that exceed any expectation.

“ICO Alert has seen double our number of unique daily users every 2 to 4 weeks. The growth is incredible and validates our opinion that the community wants an unfiltered list of ICOs. ICO Alert is still the only free website and the only comprehensive list of active and upcoming ICOs, so we expect growth to continue, “says Robert Finch, founder of ICOAlert.

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Evaluate the opportunity

While an exceptional ICO captures the attention of investors and collects the cryptocurrency it requires, many will inevitably fail. Studying the market is not complicated and gives one a good idea of ​​how the currency is doing.

How unique is the idea?

There are millions of ways to use blockchain, and new ideas emerge every day. Currently, the market is not impressed with coins that simply recreate the “decentralized currency” model, nor should they be. Bitcoin was a revolutionary idea when it was invented for the first time, but now all cryptocurrency shares its functionality. Look for something that gives a new twist to an old concept or seeks to achieve something ambitious. If you notice confusing terminology or regurgitated ideas on the project website, stay away. It could be a scam.

Currency distribution

The intelligent contract that manages the distribution of the currency must have specific rules, such as how much will be available, to whom, when, and if the unsold coins will be “burned” (destroyed) or not. In general, the scarcer a currency is in relation to its supply, the more appreciation it will reach in the open market . Look for information on how many coins will be sold in the closed presale (and what is the bonus for buying at that time), the ICO time window, and more.

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Integration plans in exchange platforms

The most bullish factor for any cryptocurrency is to sign up in an exchange. If a place like Coinbase, Bittrex or Kraken announces plans to list a currency that is still in its ICO phase, this is an excellent signal.

In what blockchain is it built?

The new ICOs should be launched from an existing block chain, unless they plan to build their own. The chain on which the currency is based determines which existing cryptocurrency will be used to participate in the ICO. A project using the Ethereum blockchain will require Ether to buy the new currency. Therefore, at the beginning it will be interchangeable only with Ethereum and not with other cryptocurrencies. If you use a less popular string (such as NEO), this could put a limit on the price.

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Who is on the team?

Evaluates the composition of the team and investigates whether or not they have experience in the industry. Each real project will publish a brief profile of each member, their history and their individual role. A great team full of veterans is favorable.

Check the technical documentation

The white paper or white paper is by far the most important determinant of the seriousness of a project. It must be thorough, thorough and explain well the technology and purpose of the currency. Other assets may include videos, blog posts, and other team contributions.

Check the community

Finally, the community is a crucial indicator of the potential of a cryptocurrency. Cryptocurrencies have followers that meet online on websites like Reddit and Bitcoin.org. Github is also a great resource, and those who can read the code can see how the project is scheduled. Social networks are less important, but they can also be useful. The hype that receives a coin has a close relationship with its final price, because those who talk about it are usually the investors themselves. However, beware of rewards ( bounties ), a practice that new cryptocurrency companies use to reward those who spread the benefits of the project. Form your own opinion and always take another’s with skepticism.

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How to identify the next great cryptocurrency

Those investors who had the foresight (or fortune) to buy Bitcoin in its early days and then clung to the cryptocurrency when it took off during the past year are now extremely wealthy. The largest digital currency in the world by stock market capitalization has had an excessive performance in recent years, and the result is that many casual investors synchronized it correctly and clung to their BTC. They ended up being millionaires.

As a result of the explosion of Bitcoin prices and the greater number of digital currencies that flood the market, investors are looking for the next digital currency to enrich themselves. The question is, how can you find a cryptocurrency that takes off in the future?

The price is crucial

An element to keep in mind when looking for the next superstar is the price of the token. For the average investor who does not have a large amount of money to place in the cryptocurrency space, low-priced currencies can offer the best investment for your money.

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Imagine a potential investment of $ 5,000: at today’s prices, that money could buy less than half of a bitcoin, more than 25 litecoin, or thousands of units of one or more coins priced less than $ 1 each. The ability to diversify with currencies at a low price should not be overlooked.

Perspectives for adoption

By 2018, Ripple had a great growth. While XRP has declined a bit since the beginning of the new year, it has great potential for adoption outside the world of cryptocurrency speculation. The reason for this has to do with the settlement system that the underlying Ripple technology promises to central banks and other financial institutions.

If you can identify a cryptocurrency that has an advantage over others (and, therefore, is more likely to be widely adopted), this can be a good investment.

The offer is a factor

Most cryptocurrencies have a predetermined maximum supply. When that maximum is reached, usually through mining efforts, no new tokens will be produced.

If the interest is maintained while the supply is fixed, the price could rise. Be sure to consider the total supply and current circulation of any cryptocurrency before investing.

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Price and volume

Up-to-date information on the cryptocurrency trade is easily available online through sites . It is likely that the digital currencies with the highest price and volume of operations are those that have a momentum in the future. Of course, there is no guarantee that this momentum will be maintained, but it is nevertheless a useful way to see which digital currencies are of most interest to investors at the moment.

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