If you are among the few people who were lucky enough to buy Bitcoin before 2017, you may have already retired now. No other investment in the world has performed the way that Bitcoin did over the past few years. Those who were able to forecast the success of Bitcoin are now multimillionaires. With the rush and hype around cryptocurrencies, more traders are searching for the next big cryptocurrencies, so that they can make thousands of percent in returns within a few years. In this article, we are going to help you with the best tips on how you can find the next Bitcoin.
Where should you start? It can take a lot of time for you to find the next big thing in the cryptocurrency market as there is an influx of new cryptocurrencies coming in the market every month. Not all of these will be successful. Therefore, you should avoid going all in or you can up losing everything you invest it.
With cryptocurrencies, there are still several apparent risks, which includes regulation. In 2018, investors and cryptocurrencies enthusiast can expect regulation to be a hot topic. Whichever country that you may be based, make sure to take a look at the regulation or else it will be worth nothing once the government outlaws it.
The following are our top tips on how you can find the best new cryptocurrencies in 2018.
- Mainstream adaptation
- Popularity and community
- Highly circulated supply
- Price and volume charts
When searching for the next the cryptocurrency, take a look at new cryptocurrencies that are priced below a dollar. This is a great tactic, especially for investors who don’t have a lot of money to invest in cryptocurrencies. If you are utilizing this tactic, you need to spread your risk by investing in several cryptocurrencies instead of just one.
As you are purchasing these cryptocurrencies at a very low price, there is a possibility that these number can increase in value over a short period. One of the best examples of cryptocurrencies that have increased in price over time is RubleBit. It has increased in price by 522% over seven days. Meanwhile, Cyder increased by 7412%. The potential with cryptocurrencies is very apparent. However, keep in mind that their value is mostly based on speculation.
When searching for the next big cryptocurrency, you need to consider which ones are most likely to be adopted as the currency. Essentially, you need to do in-depth research to understand the specialties of the cryptocurrencies over others. Keep in mind that many cryptocurrencies today simply imitate Bitcoin’s blockchain and spend a lot of marketing it as the next big thing.
By doing your research on which cryptocurrencies you forecast to succeed, you can estimate the intrinsic value once the coin reaches mainstream adoption or a set level.
Another important factor that contributes to a successful cryptocurrency is the amount of popularity surrounding the cryptocurrency. After all, for a cryptocurrency to be successful, it must be backed by a large number of cryptocurrency investors. To begin your research on the popularity of upcoming cryptocurrencies, you can visit the Bitcoin Reddit group or any other cryptocurrency social media groups. In other words, you need to stay alert.
By following these social media pages, it enables you to stay ahead of other traders if you constantly monitor the development of cryptocurrency news. Keep in mind that it should only function as a guide to point out which cryptocurrencies are worth investing. Ultimately, always do your research before putting your money into a cryptocurrency.
Another important factor that you need to pay close attention to is the maximum supply level. For the next big cryptocurrency, you must search for coins that have a highly circulated supply. This is because they have a higher chance of going up in price if demand increases due to a limited supply.
Always search for momentum when it comes to cryptocurrencies. One of the best places for you to do your research in this regard is by checking the price in volume charts. You can search for ones that have accelerating growth for both price and volume. This can indicate the general momentum behind the cryptocurrency.
Important things to remember
Whenever you are investing in cryptocurrencies or initial coin offerings, you need to understand that your investment is avery high risk. If you get this right along with proper regulations falling into place, you can set yourself up for life. However, predicting the next big thing in the cryptocurrency market is anything but easy.
It seems like everyone has their projection of what is the next big thing. As there are so many fast-moving parts to the cryptocurrency market, you also need to spread your risk as this is the best investment strategy for you.