The current state of the cryptocurrency space is not a simple one. From claims of fraud and scams to pump-and-dump schemes, it’s often difficult to know who to trust and what you should do when you’re looking at investing in crypto.
The crypto space has been full of innovation and opportunity since its inception in 2008 but is also rife with danger, risk, and uncertainty. You may have ever tried investing in this space before or even spent some time trading Bitcoin or Ethereum on an exchange. You’ll know that things are always changing quickly in this industry. Just as soon as something becomes popular (or unpopular depending on how well it performs), there are dozens more projects ready to take its place.
In this guide, we’ll be looking at finding hidden gems within the current crypto ecosystem. So you can make informed decisions about where your money is going without falling victim to frauds or scams along the way!
Digging Through the Rubbish
You can’t go wrong with a coin that has a great team behind it. You can tell much about a project by looking at the people and organizations that are involved in it. If you see a lot of big names in the space, that’s usually good news for the project.
A coin’s market cap is another indicator of its potential success. Generally speaking, when coins have high market caps they are less risky investments because there will be less volatility in their price and more room for growth over time.
You should also check out what kind of white paper or prospectus your crypto asset has. This will give you an idea about the team’s ambitions for the project and how serious they are about achieving them.
Finally, look at whether or not your crypto asset is mineable or pre-mined. The latter means that someone else owns most of its supply (or even all of it) and could theoretically manipulate prices by dumping their holdings all at once onto exchanges if they chose to do so (and some do). The former means there’s no central authority controlling supply. New coins enter circulation via mining activity (and thus earn miners’ rewards).
Finding Diamonds in the Rough
The crypto space is a vast place, and it can be difficult to find diamonds in the rough. However, there are some things you can do to increase your odds of finding a hidden gem:
Look for coins that are already established. The market has been around since 2010, so most of the “hot” coins right now are quite old. Newer projects may seem like they have more potential because they haven’t yet been discovered or mined by everyone else.
This doesn’t always mean they’re worth investing in! Look for coins with actual use cases instead. Those are usually more likely to end up having long-term value than something that’s purely speculative (and thus prone to crash).
Look for coins that are already listed on exchanges. If no one is buying your coin at all, chances are good no one is interested in it either. If it showed that nobody wants what you’re selling then it probably won’t go anywhere even after a few years. Unless someone buys it from you first of course.
Look for coins that are already being used by people who aren’t just speculating on them. Again this shows actual demand versus speculation. In this bucket, you can learn about Solana specifically as people are going crazy about them. You can check information on
- How to buy SOL?
- What is Solana?
Sticking With What You Know
When looking for the next hidden gem, you may be more likely to stick with an established company that has been around for a long time. This is because you are familiar with their products or services and know what to expect when it comes to their customer experience. You are also more likely to want something easy to use and understand.
Sticking with what you know can be beneficial in many ways. It helps you avoid making costly mistakes with your investment dollars. It gives you peace of mind that your money is being invested in something safe and reliable.
The Future of Cryptocurrency
The future of cryptocurrency is still very much in its infancy. Although it has been around for several years, many think that the technology is not quite ready for mainstream adoption yet. Indeed, crypto is still a very volatile market and it’s also true that most people have no idea what cryptocurrencies are or how they’re used. However, as time goes by and more people learn about this exciting new technology, we expect to see things change in the coming years.
We already know that there’s a lot of room for growth within this industry. If you look at some numbers from CoinMarketCap (a site that tracks all kinds of cryptocurrency data), then you’ll see just how much potential exists!
For example, if one person out there invested USD 1k into bitcoin back when they first heard about it ten years ago. Then that person would now be worth over ten million dollars today!
The Best Ways to Research a Hot New Coin
Find out what the coin does. This should be pretty straightforward, but it’s worth noting that not all coins are created equal. Some are just there as a way to make money, while others serve more niche purposes. If you’re looking at something that seems too good to be true, it probably is!
Find out who is behind the coin. Try Googling “who started [coin name]” and see what comes up in your search results. This will give you an idea of whether or not they have any track record or connections in business or technology.
Find out who supports the coin beyond its creators and team members (if applicable). Is there an advisory board? Is there support from miners? Are charities interested in using this currency for donations? Make sure there’s actual interest behind what’s being offered before putting your hard-earned money into something like this!