“There are very few who have reaped the benefits of the Bitcoin and its price rise. For all of the rest, there is a need of finding another crypto gem that can give them the taste of what Bitcoin gave to a very few. Finding the next Bitcoin is not an easy task and a comprehensive research plan must be executed to ensure success. This guide will help you in making decisions and in lowering your research work.”
The following points must be considered by every investor on the quest of finding a hidden gem:
The Buy-in Price
An investor with a limited capital and who is starting the crypto investment journey must look for the cryptocurrencies that have a low price so that more coins can be bought for the limited capital at disposal. As, buying Bitcoin or a high priced cryptocurrency with small amounts will only provide a fraction of the coin and at the time limit the possibility of parabolic growth.
The Future potential
Rushing into buying a cryptocurrency with low price will be a fool’s narrative and thus an extensive research on the future potential of the coin must be performed. The basic structure and the problems that the cryptocurrency tends to solve helps in identifying the future potential of the currency. A currency with high future potential will have the maximum probability of extensive growth.
The total supply of a cryptocurrency is another factor that needs to be explored while finding a hidden gem as the currencies with unlimited supply and a very huge supply will have the least potential of growth. The higher the total supply of coin, the more inflationary it is and thus the future value will go down with time and thus it is a good option to choose a currency with a limited and low supply.
Cryptocurrencies with high transaction volumes are other potential candidates for the growth and thus must be considered. There are small cap cryptocurrencies that have a solid project base and thus people have high hopes from them and thus they are traded with high volume. Such currencies must be kept under constant radar.
Some tokens are more popular than others and the token popularity is another factor that must be explored. Though, an investor must pay due diligence while assessing the popularity of a token as there are certain scammers around the crypto world that artificially create a hype around a coin and rug pull the investors.
Past Market Performance:
In most of the cases, the past somewhat helps in predicting the future. Though it is not certain, analyzing the past trends and the performance charts of a cryptocurrency can provide a great deal of information regarding its performance and how it will perform in the future.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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