After spending many years as a bit of an underdog, the crypto industry is more mainstream than ever before. Millions of people have entered the space hoping to make money from top tokens like Bitcoin and Ether. But as any crypto lover will tell you, the industry has more than just brand-name tokens to offer investors.
At any given time, there are cryptos that are just emerging in the market that could make heaps of profits for early investors especially. The tokens said to have potential in the market include everything from meme coins to more traditional cryptos.
If you buy into a crypto early enough and it goes on to perform well, you could make several times your initial investment. And, with under 1 dollar price on many of these new coins, you don’t have to make a huge investment to try and make some profit as you would with something like Bitcoin or Ether.
The question now is how to find these promising tokens while avoiding shitcoins along the way. Here are a few ways to go about this:
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Read Crypto Publications
One of the best ways to know about promising cryptos coming up in the industry is to read crypto-centered publications constantly. As projects garner more hype, crypto publications will typically cover them and analyse whether or not they’re on track to do well and why.
By following these publications, you will not only know which projects are making headway in the industry but also why they are so popular and whether they are likely worth investing in. Follow crypto sites, magazines, newsletters, and so on to get this knowledge. Soon, you’ll be a much more confident crypto investor.
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Read the Stats
The crypto industry is full of useful tools that can help you predict the future trajectory of a token and which ones are coming on the scene. If you’re looking for cryptos with potential, visit any crypto tracking page like CoinMarketCap and look through the list of newly launched tokens. Then, read about these projects and see which ones look like they might have potential.
Another thing you can do is search on crypto exchanges for the tokens with the most gains in the last week or day. Look out for the newer ones that are gaining hype and consider investing in them.
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Consider Use Cases
Interestingly, one way to find cryptos with potential is to look for blockchain projects as opposed to cryptos themselves. You see, the market performance of a crypto is hinged on its demand and there will be more demand for a token if its underlying project is useful.
So, a good idea would be to look for projects in the industry that appear to have potential. Maybe a new blockchain layer, a project that allows for tokenized investment or one that solves a major issue. By finding these projects, you can uncover an ecosystem whose native token could explode in value in the near future.
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Join Communities
The crypto sector has never been short of community and if you’re looking to find promising tokens, you might want to tap into these. There is everything from Reddit forums to Telegram groups, to Twitter/X communities where people discuss all things crypto.
This includes information about tokens that could become much bigger in the future and why. By being a part of these communities, you’ll know what you should and should not invest in and you can reach out to others for advice along the way. These communities will prove to be invaluable to you during your crypto journey and should not be discounted.
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Consider Follow-up Projects
Just like every other industry, projects in the crypto space are more likely to succeed if they’re backed by a team that already has a track record of success. So, investors should consider follow-up projects from teams they’ve already invested with before.
Say you bought into a crypto presale and it was successful and later on, the team behind is launching another project. This might be a good opportunity for you. By signing up for newsletters and following the crypto projects you invest in, you can stay abreast of new projects coming from their creators. Hopefully, these will be a success as well.
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Follow Exchanges
You might not know this, but getting a token listed on a major exchange like Binance or Coinbase is not a simple process. Before this happens, the creators of the token will have to go through a thorough vetting process, including proving the legitimacy of the token and that it is likely to secure a decent transaction volume.
This means that tokens purchased from an exchange are much more likely to make a return than others. So if you’re looking for valuable tokens to invest in, you might want to look for newly listed or soon-to-be-listed tokens on major exchanges.
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Watch Out For Shitcoins
One of the most important things to do while seeking out promising tokens is to watch out for shitcoins. These are tokens that appear to be valuable but in reality, are worthless and only invented to trick investors out of their money. While it is not exhaustive, there are a few ways to avoid them:
- Avoid tokens with no legitimate use cases or community behind it
- Be cautious of tokens that seemingly come out of nowhere and have a high transaction volume
- Be cautious of tokens with no known team behind it
- Reach out to your crypto community and find out its opinion on the token
- If all else fails, only invest money you can afford to lose
Conclusion
The crypto industry can be truly profitable for investors as it is constantly churning out new tokens that hold a lot of promise. But for an investor, finding the right tokens to invest in can be tricky and takes a bit of creativity and research.
Follow the above tips to seek out the most promising tokens by leveraging the resources and tools available within the community, as well as other investors’ wisdom. As you do, make sure to steer clear of shitcoins and only put your money into legitimate and vetted projects.