How To Pick New Crypto Coins Early? [Easy Framework]
A basic requirement of any investor is to pick the commodity or any product at its best lowest point and sell with good gains. To achieve the best profit gains, one has to ensure the product quality and concept at a reasonably discounted price. So similarly here, we would discuss how to pick new crypto coins early to make good returns but also make sure the investor is investing in some genuine crypto project
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How to pick new crypto coins early?
There are a lot of cryptos that make noise before hitting the market. But properly verifying them is your crucial job. You can find these cryptos flashing on the below-mentioned sources but beware if it’s a marketing gimmick from a crypto project or if it genuinely is solving some problem. Generally, a rule of investment says that any gem worth investing stays usually hidden/less spoken about in the initial days.
Social media
Social media has always given freedom of speech to its users and it’s been quite a while since investors speak openly about their holdings and investments in cryptos/stocks.
Crypto forums
A lot of meaningful forums like Reddit, Quora, and many more have an open discussion on the project details and how the upcoming coins in the market can solve any existing problem from a project. Similarly, there are a lot of discussion groups on Facebook that could give a good lead toward the new upcoming cryptocurrency.
Crypto Data Aggregators
These sites are the best focal points to know which coins already exist or any recently introduced coins. Your investment is just a search away on these data aggregators. The good thing about these below portals is that they give you good information on the current crypto price, their market capitalization, trading volume, and existing coin circulation with a visual understanding of the price chart for the same crypto
Crypto news
The above data aggregators also prompt the latest crypto news which could be a good source of information to grab some eyeballs on new or any upcoming cryptocurrencies.
Initial Coin Offering / Presale crypto of crypto coins
There are a few specific sites that focus on posting all the presale coins alone. They give you detailed information on how many funding rounds the project has gone through, project details, and presale stages.
Where to find new crypto coins?
The advantage of investing in any presale crypto coins is usually the price discount first but also the the project needs money and when investors explicitly believe in such crypto coins, a few projects grant bonus cryptos for the amount investor invests in them. So Such a combination is likely to give great returns to any investor when the project hits the market.
So first make sure you pick a reliable centralized exchange that hosts the presale of crypto coins.
Remember, while investing in presale, the project usually has no history or any known smart contract. There are a lot of scams happening out there. Where investors’ invested money is lost as the project turns out to be a sham and shuts eventually before hitting the market. So invest wisely.
How to pick which new cryptos to buy?
This is the most interesting part where your decision could make a difference. Be it a stock, real estate, or crypto, the investor’s prudency to understand the economic demand of that investment will make his decision a zero or hero in how to pick new crypto coins early.
Roadmap
Every crypto project will have a roadmap vision. As an investor, one must understand what the founders are envisioning for. Beware of projects that promise quick target accomplishments and money.
Example –
It’s evident on their website how serious these guys are about their work. They post their roadmaps every year to inform users of the project status. Their consistent press releases on their website mean how badly the Solana team wants to let their investors and followers know about their work updates.
Whitepaper
The Whitepaper is the blueprint of that respective crypto project. It explains the technical and functional aspects of the crypto project. Through this whitepaper, one can understand the importance of the existence of that crypto coin. As an investor, it is important to understand the underlying problem that the crypto project is trying to solve to maintain its demand in the vast market.
Example
The above whitepaper explains the core functionality of what’s happening in and around the product with proper citations.
Tokenomics
You have to see if the coin is going to hold its demand in the future in its ecosystem. Check if the coin is inflationary or deflationary. Mostly deflationary coins increase their value while they are nearing their reach to their predefined maximum supply in the market. On the contrary, inflationary coins will lose their value with time if supplied in unlimited quantity without being burnt.
Example –
Solana is an inflationary token with a predetermined disinflationary schedule. Solana has a burning mechanism where 50% of transaction gas is burned while the other 50% is paid to validators alongside the deflationary inflation schedule. They have explained their demand economics in detail here.
Development Team
Make sure the development team is centralized and regulated to keep the development activities in sync. The project might go live with a good response but there should be enough new features released shortly, which has to be time-lined in the roadmap of the project.
You can check the detailed development activity for Solana here.
This could be a little technical for any non-technical but the easiest way to understand is to check the recent commits from the respective developers. The more recent number of commits indicates active development in the project. Note the repository has to be common which justifies the fact that all are working for the same Line Of Business.
Management
Check the linked-in profiles of the management executives and development team for that crypto project. If most experience backgrounds align with their crypto field then it’s a good assurance for the investor to know that the crypto team knows what they are doing.
Most members on the board are ex-Qualcomm senior employees. You could pick the names from here and try searching on Linkedin to understand their work history.
Website
Check their websites to see if it’s not too amateurish or scam intended. Check for broken links, images, or grammatical mistakes. The website is the face of crypto projects and no serious management will ignore focusing on keeping it up to date.
We ran the Solana website on https://www.urlvoid.com/ to check for potential scams if any but it returned clean.
Deep Check
No matter how well your ability to research and conduct a background check on any crypto project, a few backend-related things like transfer limits, ERC20 contract abuse, backend restrictions, previous scams by owner’s wallet, token drainage, hacks, etc cannot be just googled.
You need some smart tools to help you find that. One such tool is the De.Fi scanner tool that helps you in auditing contracts or faults within the contracts.
We tried running this scanner on the Solana contract and the DeFi score came back to be 83/100 Check out what red flags were raised here and see if that matters to you. In general, a minimum DeFi score of 90/100 indicates No risk detected.
Audits
Try investing in crypto projects that are audited by some solid reputed firms. Though the huge number of presale crypto projects would likely be unaudited try keeping this point to be cognizant of the wrong step.
In the case of Solana Certik agency audits their security processes.
Solana Security Audit→ https://solana.com/solana-security-audit-2019.pdf
Solana Financial Statement → https://tokenterminal.com/terminal/financial-statements/solana
Though the above financial statements are not audited, they give any investor a jest of what is happening within the project from the financial point of view.
Funding
If any crypto tends to pick good investment funding in initial funding rounds that’s a good indication. But don’t just blindly invest just because the project bagged funding. Research the investors and see their history of investment decisions.
Solana has a strong funding history with some great lead investors bearing the torch here.
The total funding amount is $320 M approximately with only 1 investor (Pixelynx) exiting the company.
Calculated Risk (50-50)
While scrutinizing for an opportunity to invest in crypto, you might find a few above pointers not being fulfilled or in the case of the presales coin, you won’t be able to find a lot of information for above pointers. In such a case, if the crypto offering price is relatively low where you get a good lot of crypto and at least 50% of the above pointers are satisfied, you can take the calculated risk by investing 50% of the amount you would invest.
What is the best crypto exchange?
Crypto exchanges are the centralized platforms that allow their users to invest across a wide variety of cryptocurrencies. It depends on the exchange on how many currencies they allow their users to invest in.
Any investor should investigate how secure these exchanges are before they make any investments in cryptos or their presales. The user should check if there have been any records of cyber hacks with that respective exchange’s users. A few exchanges also offer vault services to their users as the best solution to prevent any hacking events.
Below are the best crypto exchanges in the world
1) Wazir X–
With the most number of users using this platform, Wazir X tends to be the most trusted centralized exchange among all providing the best Ul experience for any investor. It is recommended for any beginner Investor.
2) CoinDCX–
It is also the most spoken-about exchange especially recommended for beginner to intermediate investors. The most attractive point many investors find in this platform is the minimal fee they charge for the transaction and other activities. Though their Ul lags a bit in the user-friendly quotient.
3) Coinswitch
Their business model implements zero fee structure for select trading activities which makes it the next go-to crypto exchange amongst the investors. Though they have a decent variety of cryptocurrencies listed when compared to the above 2 exchanges, they still cover all the most spoken-about coins in the market to date.
4) Coinbase
This platform is the most secure exchange amongst the above listed here. They cover a wide variety of coins welcoming more investors in their platform for average activity fees. They also have a crypto vault service of their own, ensuring the crypto security of their users. Coinbase has also invested in a part of CoinDCX.
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