One of the most important use cases of blockchains is that they decentralize certain mechanisms or tasks which otherwise would be done by central servers. Trust in institutions and the participants in a network play a big role in this. Dig deeper and find out why the people behind the project think that what they do will help to solve an existing problem. This type of value isn’t only monetary; it is more intangible, such as an NFT that you identify with on a personal level. For example, this could be a graphic that triggers a happy memory, and you want the NFT so that you can be reminded of it—and hope for growth at the same time. There are also specialized marketplaces that focus on a particular industry or sport.
Twitter is so useful because of the timeliness of its information. Most announcements, hints and helpful conversations happen on Twitter, especially as it’s a public space, so it helps you get in early. You get a lot of the info in real-time, and you can use hashtags and search functions to follow the latest trends. Time is everything in crypto, and the earlier you are in on a project, the better the returns. Always remember that the behavior of market participants can’t be accurately predicted. Even during bull markets, learning about tokenomics can help you stay away from bad projects, and occasionally, catch the good ones early.
How to Find New Cryptocurrencies for Investment
Watching those have helped me a lot in understanding the benefits of on-chain analysis as well as how I can do that analysis on my own. They also give you a sense of where we are in the market cycle which is often times helpful when managing your portfolio. Another place to really learn about on-chain analysis is from the Glassnode academy.
- Disregard promotional articles on news sites, as they are always exaggerated headlines intended for the sole purpose of generating clicks, hype, and FOMO (fear of missing out).
- All the things on Coinglass are free and although I only mentioned Bitcoin, they have statistics on a variety of altcoins.
- You can find things like market cap, trading volume, price history, charts, and so on, on crypto-focused websites.
- It is always a red flag if a project is not growing through a dedicated community, but solely through courting and promoting itself through celebs.
- It is highly recommended that you have relevant knowledge of the respective market or use cases.
- Also, watch out for how they respond to fair criticisms of their projects.
Naturally, this gives you a sense of whether people are planning to sell or hold. If there’s an increase in the flow to exchanges then a drop might be near, ‘cause if not to sell your coins why would you move them to an exchange? If there’s a growing outflow it means that more and more people are planning to HODL. This metric, as the name suggests, shows how many active HODLers are sitting on profit versus loss. The reason this metric is valuable is that when euphoria strikes more and more people are sitting on unrealized profits. This naturally creates looming selling pressure waiting to be realized if something unexpected were to happen.
Exchange-Traded Funds (ETFs)
Most of the data here is useful for getting a sense of the market sentiment. The problem with doing more thorough analysis with LunarCrush is that you need to pay for access to more data. Without paying you will get a maximum of 3 months charts and no charts for the Altrank or Galaxy Score, only the values.
These are just some of the questions you need to ask during your cryptocurrency evaluation. We’ll discuss them in greater detail throughout this guide, which will give you a framework for evaluating crypto projects. If you covered the above sections, you now know how to find new crypto coins to invest in. You’ve learned that Moralis Money includes three core features that allow you to overcome the main three obstacles of crypto investing. FOMO – Most inexperienced traders don’t have the right trading tools, and they usually lack a system/strategy.
A good roadmap will be well-thought-out and realistic, with clear milestones that the team plans to achieve. It should also be updated regularly to reflect its current status. If a roadmap is outdated or unrealistic, then it’s likely that the project won’t be successful. The Grok crypto price skyrocketed within its first couple of days after going live.
How Do I Acquire a New Cryptocurrency Before Listing?
Celebrity involvement in projects can be a good and a bad thing. It is good for the project because it brings it to the mainstream and introduces it to a large audience. Always start by following the official channel and group of the project you are interested in. Always disregard ad content, where the person you are listening to is being paid. Even if there is a motive or incentive to give out that information if the source is upfront about and honest about the bias, they are usually more credible than those that hide it.
CoinMarketCap, one of the leading crypto price trackers, has struggled with data inaccuracies. NFTs are one-of-a-kind digital assets that have been tokenized. This is the process of linking an encoded alphanumeric sequence to the asset and storing that information on a blockchain. It establishes ownership without question because the token’s network validators must verify ownership through a consensus.
Binance also lists new crypto you can review and investigate further. Lunar Crush gathers all the information found on the web from the price actions to Google search trends. Then, using AI and a lot higher IQ technologies way out of my knowledge level, they form a few different rankings for you two to know what the sentiment around a crypto is. First, a particularly useful metric to try to find the top is all exchanges’ net flows.
The vision of a crypt project should give enough details for investors to understand what problems they are solving, as well as the potential user base for their solution. With over 10,000+ crypto coins, there are many opportunities out there. But there are also many shady platforms and crypto projects, so it’s important to know how to find crypto with potential and make sure the projects are viable.
It’s also good to see how big the supporting team is, whether they have any notable strategic partners or investors, and where they’re based. IntoTheBlock offers real-time bullish and bearish signals for the top crypto assets. Specifically, they look at on-chain signals, exchange signals, and derivatives.
The advantage is that these are already somewhat established and more advanced projects, meaning that some of the worst coins and tokens have already been weeded out. You can buy them and other digital assets at cryptocurrency exchanges, decentralized finance platforms, non-fungible token marketplaces, and initial coin offerings. https://www.xcritical.in/ Those are just two of many useful metrics Glassnode has to offer. Glassnode has a free plan which in their own words offers the most fundamental on-chain analysis. Then if you need more up-to-date information along with a few additional metrics you’re going to need to pay for their advanced plan at $29 a month.
This article is intended for crypto investors and the crypto curious—with a breakdown of all the important things to consider. Only you know your financial goals and tolerance for risk, and you need to develop your own investment hypothesis. That way, you’ll have confidence as you hold through any lows, how to find new crypto coins or know if it’s time to sell. Ultimately, it’s your hard-earned cash, and only you can make decisions about what to do with it. There’s no point evaluating your potential investment in a vacuum. Look at the competitive space and think about how your crypto compares with others doing similar things.
Hopefully you read the piece on sentiment analysis on Coin Bureau a few weeks ago, if you did you should be familiar with LunarCrush. But of course, not all of you read the piece so here’s a short introduction to LunarCrush. LunarCrush is a sentiment analysis tool that gives you all the essential information when it comes to public perception of a crypto. LunarCrush has two custom scores called AltRank and Galaxy score. I’ll leave a picture below so that you can see what they are based on. However, you don’t have to rely on this and LunarCrush does give you the ability to analyse cryptos yourself too.
For a majority of new or smaller coins in the crypto space, information is not as conveniently accessible as with the big and established platforms. After gaining enough knowledge and experience with large-cap cryptocurrencies (also try buying and selling small amounts), you will probably want to explore smaller cap projects. By now there are thousands of different projects and coins in the crypto space. I researched over 100 cryptocurrencies and projects and learned a lot about how to make money in the crypto space. You can use several tools to help you verify the validity of a cryptocurrency.