How to find profitable coins before the hype
Nothing is as sweet as investing in a coin before it hits the limelight. When you play your cards right, you stand the chance of a lifetime of financial freedom because a coin can give you an incredible 50x or more.
For instance, verge coin rallied explosively by 1,281,942% in 2017 moving from $0.000019 per coin to $0.30058. This implies that someone that invested just $70 in the coin would have become a millionaire at the end of verge’s high rally.
Have you missed out on several pumps? Are you curious about knowing how to identify a potential promising coin before the bubble burst? If yes, this article provides deeper insight into the fundamental factors to watch out for.
6 Key Factors Of A Promising Profitable Coin
- Identify the Use-case of the Coin
One of the fundamental factors that define a promising profitable coin has to do with the use-case of the cryptocurrency.
Try to establish if the digital asset has a particular purpose that is rational and realistic in the crypto industry. This is because acceptance and adoption of the coin will accelerate the price.
For example, Bitcoin was created in 2009 by the pseudonym, Satoshi Nakamoto, with its use-case being a store of value. The rising adoption and acceptance of Bitcoin have pushed the price from the initial $0.0008 to $39,000 at the time of writing.
- Read and Digest the Whitepaper
The future of a coin can be easily determined by the contents of the whitepaper. Every given project has a whitepaper often developed by the team.
The whitepaper reveals the primary objective of the project and how it intends to achieve it. It also shows the amount to be raised before the project will be launched as well as the units of tokens that will be distributed to the public afterward.
All these give you a sense of whether the coin is good or bad.
- Background of the developers of the coin
It is generally believed that developers with prolific backgrounds, especially in blockchain technology and cryptocurrency, hardly launch projects that will rug-pull investors.
In this regard, conduct brief research on the background of the developers or team members before investing in a coin. Relevant pieces of information can be seen on their website.
However, it is advisable to stay clear if the background of the developers is shrouded in secrecy.
- Visit Crypto Forums for Reviews and Feedbacks
In cryptocurrency, no one is an island of knowledge regardless of one’s ability to read charts and handle technical and fundamental analysis.
In order to be on the safest and winning sides, visit cryptocurrency forums and read what notable retail investors are saying about the coin. One of the reliable platforms is BitcoinTalk, where you can gather more facts and insight. Similarly, Reddit is another platform worthy of recommendation.
- Patience and Hodl
Unlike gambling, cryptocurrency investment has to do with utmost patience and the ability to showcase diamond hands.
Once you have bought a coin and you wholeheartedly believe in the use-case, what is most needed is patience and endurance because the desired profit may not come very early.
Moreover, the ability of the developers or the team members to launch new products relating to the token shows that the coin may finally rally high some days.
- Focus on Market Cap and Ranking
A promising profitable coin can easily be determined by using its ranking and market cap. For instance, a coin with a low market cap that falls within the rank of the top 50 cryptocurrencies is regarded as a good investment.