Bitcoin’s all-time high valuation has sparked renewed interest in crypto investment. The potential for finding the next big thing has seen a surge in popularity of various new and exciting projects.
News that America’s incoming political regime is crypto-friendly and plans to relax regulations is great news for the consumers, businesses, and industries that already embrace the crypto culture.
Crypto expert Gary McLellan identifies various fine crypto casino options benefitting significantly from crypto’s growth.
He explains that the exciting game selection, enhanced security, transaction speed, and enticing bonuses have attracted a strong customer base, and the growth of cryptocurrency will only strengthen this industry.
A similar trend is notable across other industries, from healthcare and retail to real estate and other sectors.
So, with more consumers set to explore the crypto market, established cryptocurrencies, including Bitcoin and Ethereum, will attract new customers. Still, those hoping to find the next big thing must study the market for new crypto projects.
This is easier said than done, with countless options available to explore. The suggestions below will help consumers find the best new cryptocurrencies with the potential to succeed.
Check the Project Website
Anyone can create a website these days, so a new crypto project that doesn’t have a site with all of the relevant information should be a red flag.
A crypto project website should give the user an overview of their plan and objectives, let visitors know about any partnerships and the team members involved, and provide access to their white paper.
The quality of a website and its attention to detail could be a good way of judging the project’s suitability.
Study the White Paper
White papers are policy documents that highlight the crypto project’s features. This comprehensive document should outline the economic and technical aspects that will affect the development of the proposed cryptocurrency.
A typical white paper will introduce the project and provide technical details, including its blockchain technology, cryptographic methods, and consensus algorithms. The tokenomics of a project will also be key to the white paper, with details about distribution, supply, and uses.
A white paper should also include a roadmap that details planned milestones and key features, while an introduction of the project’s team members should also be included.
Analyzing the blockchain technology based on its scalability, security, and speed, as well as whether the project plans to use a PoW (proof of work) or PoS (proof of stake) consensus mechanism, should also help users weigh up the pros and cons.
Evaluate the Project’s Social Presence
The social media presence of a new project is a great way to determine what kind of support it has. It is worth checking that the interactions tally up with follower numbers to ensure a project hasn’t invested in fake followers to boost its profile.
Check Whether Team Members Have Had Previous Success
The team involved in developing a new cryptocurrency should be competent and credible, and the team should also possess the ability to adapt to market changes.
A lack of experience is not always a red flag, but it is good to see some experience within the team. Poor transparency and anonymous team members should raise questions as they could be hiding previous bad experiences.
Compare the Project’s Metrics with Alternatives and Previous Success Stories
Checking a new cryptocurrency’s metrics to explore its trading volume, supply, and market capitalization will give users a better idea of its potential value or risk.
High trading volumes typically indicate greater liquidity and stability than low volumes, and understanding the supply and amount of coins on the market will give you a better insight into scarcity.
Look at the Price History
The price history of a new cryptocurrency will typically fluctuate. Still, exaggerated highs followed by massive dips in value can sometimes indicate pump-and-dump scams that should be avoided.
Consider the Project’s Token Distribution
Token distribution is another factor that should be a priority for new investors. Large allocations to founders can sometimes lead to market manipulation, so keeping an eye on that will also be beneficial.
Conclusion
There is no set formula for success with cryptocurrency investment, but mitigating as many potential risks as possible can help you identify the new projects with the most potential.
Diverse portfolios can help investors protect themselves against market volatility, allowing consumers to invest in multiple currencies.
