If you were not lucky enough to be among those who bought Bitcoin early, you’re probably now keeping an eye out for the next big thing in crypto, so you too can trade and earn big.
Many of those who invested in Bitcoin back in the day are probably retired now, living on a beach island somewhere, enjoying their wealth and looking back with pride at their investment choices.
In the past few years, no other investment has performed as well as cryptocurrency, especially Bitcoin. Virtually everyone who held any amount of coin practically became millionaires overnight, especially with the remarkable spike in December 2017 which saw Bitcoin close at US$17,000. This success has led to a regular treasure hunt where everyone is looking for the next Bitcoin, so they too can cash out at more than 1000% returns in a few years.
In this article, I’ll explain what you should know and things you should look out for when trying to find the next Bitcoin.
But first, I have to point out that finding the next big crypto will not be easy. There are already hundreds of possible prospects, with hundreds of new ones coming into the market every month.
So, it is vital you know how to separate the proverbial wheat from the chaff as not all these coins will be successful or you could end up losing all your money. Also note that there are many risk associated with cryptocurrency, especially with the recent clamor by industry watchers and government agencies for cryptocurrencies to be regulated.
If after all your research and investment, regulations are drawn up that don’t favor the currency, all you bought will not be worth the computer it is stored in.
With that in mind, read on for top tips to finding the next big crypto.
Look for new, low priced crypto
If you are looking for a crypto that would earn you big bucks in a few years, the first thing you should do is to look for new coins that are low priced, preferably below a dollar. People are attracted to cheap items; this is a fact of life. As long as they can have it for less money, they will buy it.
A cheaply-priced crypto coin has a higher tendency to double or triple in a short time than a highly-priced crypto. The trick to making this work is to spread your risk by buying more than one currency.
If you spread your portfolio over say 5 coins, at least a couple of them will make big hits in a short time. A good example of this is RubleBit which rose by 522% within a week from an original value of US$0.038.
Do an in-depth research
The rate at which a new coin will grow sometimes depends on how easily it will be adapted as a cryptocurrency. You therefore need to do an in-depth research to find out which coin has the best chance of being adapted.
By doing this, you can make an estimate of the potential value of the coin for when it reaches set level. Part of your research should involve visiting Reddit where you can search for and locate coins that have a large community of followers. Here you will find people who innovate or adopt currencies long before the rest of the world becomes aware of their worth and catches up.
It is these communities or groups that start a demand for a coin which will subsequently lead to an increase in price. When the price of the coin increases even a bit, early investors can make some money.
Follow the noise
One factor that sets a coin apart as one with potential is the amount of noise or buzz it generates online. If you keep your ears to the crypto-ground, you will hear when a coin starts to generate a huge following. This means that the coin is very likely to increase in value. Reddit is also the place to keep an ear out for this noise.
You can also look up and follow social media groups and top cryptocurrency trading review websites. Pay attention to the coin everyone is talking about and use it as a guide to determine the one you should buy.
Most times, when these coins appreciate quickly, their supply becomes limited, so you need to be fast on your feet to catch in on the early wave. Coins that generate the higher buzz have a higher potential of becoming the next Bitcoin.
The maximum supply level of these new coins is another factor to consider. Take note of coins with a higher circulated supply as against the maximum supply. It means you’re better off with a coin that’s available in a thousand hands, than one that has just two thousand units available for distribution. These coins are more likely to rise in value as the demand increases as there’ll be limited supply to match demand.
It is vital to keep an eye on the cryptocurrency price and volume charts. The next big crypto is the one that’s rising fast in both price and volume.
This kind of report shows the currency is gaining momentum and has a high chance rising in value. Updated information on cryptocurrency price and volume can be found online, and while there is no guarantee that this momentum will be sustained, it is nonetheless a good way to find out which cryptocurrency have investors interest for that period.
In conclusion, investing in cryptocurrencies is a high risk business. While it has the potential to make you enormous profits, it also has the potential to make you lose everything. However, if you get it right, and have the right regulations fall in place for you, you can be set for life.
With that in mind, note that these tips should be used with caution. It is by no means an assurance that you will make huge profits in cryptocurrency. It is only a guide to supplement your own research.