This is a complete guide on how to find and select the next cryptocurrency to explode this year.
If you want to:
You will love this new guide.
Let ‘s start!
Maybe you are wondering which crypto coin you should invest in, and which one has the highest potential.
Many crypto projects will not be adopted and will slowly die out; that is why it is essential to look into the crypto project itself and see its offer.
Save yourself the risk of investing in a crypto project that is a scam or a dead-end by following my CryptoGem Technique.
I have developed this technique of investing in crypto for the last three years, and it helps me increase my profits in my crypto portfolio.
My best advice is to do your research before investing in cryptocurrencies!
And that shit is important!
I know we all like to take the easy road and take a chance but spending 10-15 minutes and using the below steps can significantly reduce your risk of losing all your money on this investment.
I recommend watching the video below to understand my technique.
If you want more advice please check all the investing resources that I have created.
These 6 steps are easy and straightforward to follow.
If you don’t have any cryptocurrency in mind, I recommend you check the ranking I have created.
You need to use Coingecko for this step, a great website to get technical details on different cryptocurrencies.
To find the volume of the cryptocurrency that you are interested in, you jump on Coingecko and check the crypto list on its home page.
You should identify when a cryptocurrency has consistent volume growth on the market and when it does not, look at the below graph for Bitcoin to understand what I mean.
You can notice that the volume of trading is consistent over time with low volatility. Now notice the difference in the volume chart against an allegedly scam crypto coin called BIZZCOIN.
In BIZZCOIN chart there is a pick of volume trading in the middle of May, and then you can see that there is no trading before and after that.
That is a warning sign of a pump and dump scheme, or a as we know it better a scam coin.
We recommend you check this technical data when you want to invest in crypto.
You should invest when the crypto has consistent growth in volume.
Consistent growth in volume (see in Coingeko)
Consistent decline in volume
The more exchanges the coin is listed on, the more potential it has due to exposure to more crypto traders.
Being listed on different exchanges also means more confidence in that cryptocurrency. Because most trading platforms have a screening process that determines if that crypto is legit.
And obviously trading platforms would want more trading volume and therefore select only worthy/popular coins.
For example, BITCOIN has more than 200 exchange platforms available.
On the other hand, BIZZCOIN has just 5 exchange platforms.
The lower exchange platforms a particular cryptocurrency has means less confidence, and it will be more challenging to trade.
Almost every product or service that is successful in the marketplace solves a problem for its consumer. This applies to cryptocurrencies as well. Cryptocurrencies usually do not just represent another form of currency but typically are used for some sort of online application.
For example, Injective Protocol is working on building a decentralised exchange, Polka Dot is working on an ecosystem for cross-chain compatibility. These two are just examples of some of the problems crypto projects are trying to solve.
In this step you must determine if the coin you are researching has a good project behind it. Is the crypto project solving a problem that will increase demand and profitability for the future?
In this step you got to apply your own judgement and dive a little bit into what is the crypto project offering and whether there is demand in the market for that specific product or service.
Some projects that I personally think have a lot of potential based on the problem they are trying to solve, include:
Ethereum – transaction scalability and interconnectivity between crypto software.
Link – connecting the conventional Fiat technology with Crypto technology.
THORChain – receiving the best rates available for crypto currency swaps.
Injective Protocol – Building a completely decentralised exchange.
The team is really important! If the cryptocurrency doesn’t have a great team, it will be challenging for them to explode into the market.
Just like any other type of company you need to have a great executive team to succeed.
On this step, you should check how the team is displaying themselves to the marketplace and investors.
Usually, the project team is displayed on their website. If it is not, try on LinkedIn or Google.
If you don’t find any information about their team on news or Google, be suspicious.
For example, let’s check the team of Injective protocol.
Once you look into the LinkedIn account, you would like to check the requirements as if you would hire the person.
You should check their experience, credential, endorsements, companies they worked for before and other information that you consider relevant.
This process is critical. You might be surprised how many crypto projects out there fake the team member they list on their websites. For example, BHB token project had completely fake team members listed on its website.
This is just a single example out of many so it’s important you check the team and if the transparency of the project seems legit.
It would help if you also considered looking into their Twitter accounts, YouTube, and other social media. Check if the team is present. If they are not actively participating in the press, it should be a red flag for you.
Tokenomics refers to the specification of the crypto currency and how it is governed and what’s its purpose.
When the crypto project is launched, it usually allocates a percentage of its complete token capital into different sectors within the company (Team, advisors, strategic sale, liquidity, mining, and others).
If they allocated the majority of the tokens to the team, that is usually a red flag. The reason why, the team can manipulate the market as they are the majority holding of that cryptocurrency.
For example, check on google the token allocation for Injective Protocol.
In contrast, if the majority of those token issuing are allocated to the public through mining or other incentives, then it means that the team can’t manipulate the market, and there is more governing control by the community.
Usually, 20 % allocated to the team is a healthy percentage.
HitBTC is one example of a crypto that the majority of tokens allocated to their team and development (70%), without the exact details it could mean they may still hold some form of governance over this crypto.
Another consideration should be given to whether the cryptocurrency is inflationary or deflationary.
Being deflationary means that there will be less of that token available as time goes by which makes it more valuable to an investor based on supply and demand theory.
If the token is scarcer then technically it should be more expensive.
If the token is inflationary then its important to check the rate at which the token is being inflated, usually %5-7 is a healthy inflation rate (Check below the token release from Injective protocol)
I consider that this is the crucial step to take. I believe that the media has a high impact on people’s lives.
Media could manipulate how people think, how we see things, who we vote for, what we should buy, and what we should be doing on a daily basis.
You would like to make sure that the crypto that you are interested in has good media coverage. Like looking for the number of influencers or bloggers talking about that crypto.
We recommend you discover if the cryptocurrency that you are researching is making milestones, maybe they are looking for new partners or investors, maybe they are increasing their exposure in other countries.
For example, check the differences between the exposure from Injective Protocol and BIZZCOIN.