Tips for Finding the Next Big Cryptocurrency of 2018
Last Updated: 1st November 2018
Thinking of jumping into the world of digital money? Cryptocurrencies are the wave of the future and with well over 700 of them already floating in cyberspace, you know there’s got to be something going on.
The key is to know what signs to watch for if you are hoping to hit a virtual gold mine with the next biggest cryptocurrency. Here is what you need to keep an eye out for.
1) The Price
We know. It sounds a tad obvious, but with new cryptocurrencies, your safest bet is the price they enter the market with. There are going to be several that start well below the dollar rate. If you have a limited budget to work with, buying into the “under a buck” cryptocurrencies is wise.
However, for it to be effective with the volume of new digital coins coming out each month, you will want to spread your investment across several of the low priced entries. Sure, it sounds a bit nutty to invest in cryptocurrencies that are priced at pennies or fractions of pennies at this point, but you do stand to earn some serious cash if one or more of them top the dollar mark, giving you a decent return on your investment.
2) The Welcome
Sure, it’s kinda cool to scoop some revenues from well-chosen cryptocurrencies but even if you have a high gainer it won’t mean much if no one in the retail industry is interested in using it. This is where you need to pay close attention to how the new cryptocurrencies fit into the digital money ecosystem.
This is still a bit of a crap shoot but the coins that appear most likely to be adopted as currency will be the ones you will want to invest in. Check their websites for clues. Some will indicate which blockchains they are part of and this will help you narrow down your choices.
3) The Hype
One interesting deciding factor that can drive a cryptocurrency into the stratosphere is the amount of juice it is producing online. That’s the buzz, the hype, the ink that it is getting. If you find a lot of action directed at a few of the new coins, you will know that there is some serious interest taking place.
There are several cryptocurrency social networks you can join to get a better grip on the chatter which will give you some kind of direction to work with.
4) The Supply
One thing that has never changed in the world of sales and dates back to the Dark Ages is the trusty old rule of supply and demand. Digital money is no different. In order to make a successful leap into cryptocurrency investing, you need to be aware of the supply that is available for each coin you plan to invest in.
There will be maximum supply levels noted on their individual websites. These websites should also be able to tip you off on if and when additional supply releases are scheduled to take place. You want to focus on low circulation supply rather than endless supply. Again, using the good old supply and demand theory, the price should increase when the supply becomes limited.
5) The Charts
Here’s where it would be handy to have a handle on math. A strong indicator of the potential growth of a cryptocurrency comes from reading the charts. In this case, the chart information you will want to focus on will be price and volume charts. Here’s why. With this kind of data, you will be able to identify digital coins that have been growing fast in two columns: price and volume.
What this essentially reveals to you is that a cryptocurrency that shows increases in both price and volume is one that says that the growth has momentum building behind it. Sure, we can’t tell you how long that momentum will last, but you could use that as an indication that you may have invested into the right choices.
6) The Disclaimer
You had to be expecting some sort of comment or statement related to the fact that there is a fair deal of risk involved in digital money investments. Some say it has to do with the fact that the entire cryptocurrency ecosystem is a newer take on the existing newer technology.
Even though the first such digital coin, the wildly-traded Bitcoin, burst into the English language back in 2009, there is a fair deal of apprehension that has followed. The other side of the (digital) coin is that until all retailers accept cryptocurrency, there’s not much of a future in them.
So is the world of digital money a fad that is going to collapse before we all get on board? It’s anyone’s guess but for the time being, cryptocurrencies do present an interesting investment opportunity that can bring substantial returns.
Digital money is the current rage. For as long as it lasts, there are ways to jump into the action and capitalize on it. The wisest way to do this is to invest in those new releases that are priced well below a dollar and by investing in several of them.
Supply and demand, as well as where the cryptocurrencies you intend to invest in will be accepted will have an impact on your potential earnings. The chatter online about the new coins will provide you with some insight and may be able to guide your decision.
Regardless of the outcome in your digital coin investments, you must be able to manage the risk. By doing your homework, observing price and volume chart data, you may be able to time your entry and exit with enough precision to spend a little and gain a lot within the world of digital money.