Spotting Crypto Gems: Key Guidelines for Identifying Upcoming Crypto Opportunities
In the crypto space, you have the potential to make massive gains. One way to achieve this is by identifying crypto gems early on. These are coins that have seen significant growth since their token generation event (TGE), such as BNB, DOGE, MATIC, or SOL.
1) Which VCs Back the Project?
To find these crypto gems, start by looking at the venture capitalists (VCs) backing the project. Research these VCs and see if they have a positive influence on token prices. Having tier 1 investors involved can provide valuable advice, funding, and experience to crypto start-ups, but they may also exert control that can impact prices negatively.
Source: Cryptorank
2) Find New Coins
In a new bull run, focus on finding new coins rather than those from the previous bull run. Older coins may have already reached their all-time high (ATH) and have a high market cap. New coins offer a fresh opportunity for growth and may address the shortcomings of older projects or explore new genres like AI.
Finding the gems in the sea of new #crypto projects is tough, but it doesn’t have to stay that way!
Learn how to find undervalued projects here https://t.co/ObUA0rFa4p
— CoinMarketCap (@CoinMarketCap) December 11, 2023
3) Look for Utility
When evaluating a token, consider its utility. Research the tokenomics and understand its function within the ecosystem. Determine if it’s a governance token, inflationary or deflationary, and if you can stake it for rewards. Tokens with genuine utility are more likely to thrive in the long run.
Tokenomics analysis is the key to profitable crypto investments.
But it’s a time-consuming process that demands expertise.
Here’s how to analyze tokenomics in few minutes using ChatGPT pic.twitter.com/yQnt3IBZwV
— 𝗰𝘆𝗰𝗹𝗼𝗽 (@nobrainflip) June 25, 2023
4) Look Up the Price History
Analyze the price history of a token. If it has recently experienced a significant pump and flattened out, it may not pump again in the near future. Instead, focus on tokens that haven’t pumped yet or haven’t been listed. Keeping stable coins available allows you to take advantage of new opportunities.
Source: CoinGecko
5) Find Tools that Help You
Utilize the various tools available to assist you in finding crypto gems. These tools can provide information on upcoming ICOs, total value locked (TVL) of chains or protocols, and act as crypto news aggregators. Having these tools at your disposal will help you make more informed decisions.
The more you learn about a project, the better equipped you are to assess its potential. Do your own research (DYOR) and rely on objective tools rather than influencers who may have vested interests.
Hot Take: Conclusion
Finding crypto gems is a key strategy for success in this bull run. Follow these guidelines to increase your chances of identifying promising projects. Remember that investing in Bitcoin and other cryptocurrencies carries risks, so always do your due diligence and make informed decisions.
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