Those who used to invest in bitcoin when it traded at a mere couple of dollars can now afford a well-off life. No wonder, crypto investors are willing to follow the same path: to find a cheap yet promising cryptocurrency which will enable them to expand their capital by 1,000 percent in a few years. Let’s figure out how to identify such a coin.
1. Unique idea
Bitcoin was a ground-breaking project. The trading community warmly welcomed the idea of decentralized money as bitcoin’s cornerstone. Nowadays, this idea hardly surprises anyone. Recently, the projects that have shot to popularity either upgrade an old concept or suggest an unusual method of using blockchain technology.
2. Detailed blueprint
A promising token always goes with an elaborate blueprint. Whatever awesome the idea seems at first glance, it does not make sense without a roadmap. Therefore, before you decide to invest in a particular crypto project, learn carefully about the roadmap of its developers.
3. Team of experts
The projects which are developed by pioneers of the crypto industry have a higher chance of success than those that are promoted by people without appropriate backgrounds. For this reason, we would advise you to get to know the team of developers and check the experience of anyone who is involved in the design of the cryptocurrency of your interest.
4. Decent liquidity
Before investing in any crypto asset, it is essential to evaluate its market performance. A trading volume is a barometer of a token’s popularity. With this metric, a promising token should be close to the cryptocurrencies included in the top 50 in terms of their market value.
5. Would-be listing
Another accurate success indicator for a particular crypto is its anticipated listing. If a reputable exchange floor announces the plan to add a new asset which is still at the stage of an initial coin offering (ICO), this is a good omen.
To get more insights about investment prospects for any cryptocurrency, you should investigate the information environment around a start-up. Any project attracts fans who gather at related forums, websites, and on social media. Through their discussions, you will be able to judge the token’s viability in terms of its technology. Besides, it is important to find out the viewpoints of potential investors on the product. You will be able to figure out whether the token is a worthy product and will be of any value in the future.