How to Identify New Coins and Tokens for Your Portfolio
It can be quite troublesome to pinpoint a currency alternative to the Bitcoin or Etherium and which has potential upside. It is better to realize that this phenomenon, the usage of cyptocurrency for investing is altogether different from investing the traditional way. It’s quite important to know how to locate information and updates pertaining to the subject and augment their skills to evaluate its potentiality.
Hence the following are some methods to look for prospective new currencies to invest in.
Who Is The Target Audience Of New Coins
Before you proceed with your search, it would be prudent to answer some basic questions:
- In what way will the addition of a cryptocurrency to your investment portfolio change the distribution of risks?
- Is it a good bet for the future and growth?
- Should you invest in an initial coin offering (ICO)?
- Are non-fungible tokens (NFTs) feasible investments?
- What is DeFi all about?
Getting through the prospective cryptocurrency world can be so overwhelming. There is no clear well-defined and classified evaluative parameters or scope rather than the fragmentation of fraud that has left lots of investors dazed and dry.
Even with these concerns, cryptocurrencies could probably be an asset class worth considering. They offer additional flavor to the stability of their price level and consequently their non-stable prices can offer huge turnover. Here are a number of such markets to follow closely on for new currencies and activities:
| Cryptocurrency Exchanges | Binance, Coinbase, Crypto.com, Gemini, Kraken |
| Data Aggregators | CoinGecko, CoinMarketCap |
| Social Media | Discord, Telegram, X (former Twitter) |
| Tools | KryptView.com, BSCCheck, TokenSniffer |
| Websites | Smith & Crown, Top ICO List |
| Decentralized Finance Platforms | Such platforms help to build DeFi applications and may allow investing in their tokens or coins. |
| NFT Marketplaces | OpensSea, Rarible, SuperRare |
| Initial Coin Offerings (ICOs) | Management calls ICOs, solicitation events for a coin that potentially will be launched |
| Exchange-Traded Funds (ETFs) | Also it is possible to invest in newborns of crypto currency indirectly thus purchasing derivates or securitized crypto, which can be purchased on just any stock exchanges. |
Cryptocurrency Exchanges
Cryptocurrency exchanges are professionally used not only for buying and selling assets but also for searching the latest opportunities for capital. For example, Coinbase often publishes fresh coins on its official website, but it is more beneficial to create an account in order to gain full access. You may also see some of the fresh coins that binance holds for you to study further.
Data Aggregators
Data aggregators are websites or programs that take information and present it on specific themes. Cryptocurrency data aggregators allow you to explore the new assets in the crypto space. For example, some services, such as CoinMarketCap, help you find information, including listings of new cryptocurrencies, as well as prices, market caps, and volumes. This service helps gain an insight into the current situation of what market supporters feel about a cryptocurrency and if such a currency can hold any value. CoinGecko provides almost the same features.
Nevertheless, it must be noted that cryptocurrencies usage reports by data aggregators could be misleading due to network lags experienced between the last trade and the displaying price, especially for the close period transactions. The best approach to check the current prices would and should be looking for that particular price in a trading platform.
Social Media
Social media is platforms which are characterized by rapid spreading of information. For instance X (ex twitter) has been a fast moving platform in the US which is why many Cryptocurrency founders and developers often tweet about their coins when there is a shift or new change.
It is also possible to use it more broadly to search for specific phrases and set up notifications about them on X Twitter. For instance alerts when new crypto, crypto release or even crypto are probably some of the useful phrases that you can use to search whenever you want to know if there is any news related to crypto.
Telegram is another messaging application that can meet the same purpose of getting on time news for crypto updates that are new in the market.
Websites
There are many sites that assist you in knowing which are the new cryptocurrencies in the market. Some of the well known ones include Top ICO List and Smith & Crown.
Tools
Some of the tools would assist you in determining whether the cryptocurrency in question stands to be real. For example KryptView helped you to enter a token’s name or address whereas BSCCheck helped you check tokens residing on the Binance Smart Chain. Certain information such as transactions, contracts, holders of these tokens and the prices being traded, and much more will be displayed, thus you can tell if the cryptocurrency is being traded or is active on exchange platforms.
Token Sniffer is yet another helpful tool, which carries out an audit of monetary resources having either particular names or addresses. For instance, it may be able to provide warnings of schemes, analyze liquidity, and exhibit contract information.
DeFi Platforms
Decentralized finance of its nature integrates blockchain, programming, and user interfaces to develop dapp applications which are decentralized. Some of them may provide exchange and trading services, however they are focused on DeFi applications, such as lending and borrowing in a peer-to-peer manner.
Most DeFi ecosystems have their own tokens that are designed for use in transactions withing the ecosystem. A Maker, Uniswap, or Aave are one such examples. Ethereum itself is Also a DeFi platform and allows creating various dApps on its blockchain.
Non-Fungible Token (NFT) Marketplaces
NFTs such as those on the platform using the staking method, are distinct digital assets that have been turned into tokens with possession linked to the blockchain. These play a vital role in the floating metaverse which is fast becoming a digital space controlled by corporates. OpenSea and Rarible, the most well-known marketplaces of NFTs, host collectibles worth hundred or tens of thousands of dollars.
Such focused marketplaces are the TopShot of the NBA or the Dapper Labs marketplace with the NFL or similar. Luxury brands Tiffany and Gucci also sell npies for particular target markets.
Initial Coin Offerings (ICOs)
ICOs were the major source of fundraising for technology-based entrepreneurs in the year 2018 over the venture capital. However, this mode of fundraising came under the limelight and bust due to many occurrences of cons, inviting the interest of the Securities and Exchange and regulating them to the limit. Currently, ICOs are restricted and have become less prominent.
Exchange Traded Funds (ETFs)
Meer et al (2022) added that investors could invest in cryptocurrencies indirectly via mainstream exchanges known as derivatives. For instance, the Chicago Mercantile Exchange, CME, provides crypto futures which include bitcoin and ether futures. On market trading, bitcoin-linked ETFs similar to bitcoin strategies that use bitcoin traded from CME were introduced in 2021.
In January 2024, the SEC gave nip approval to, for the first time, expose Bitcoin Spot ETFs that enables one buy Bitcoin at a cheaper price by purchasing shares of a company that contains the commodity which is most likely the Bitcoin instead of buying the virtual money itself.
Best Cryptocurrencies To Invest In
There is a constant variation of the verified cryptocurrencies leaving many options for the investment. Some of the most recognized cryptocurrencies here include:
- Bitcoin: Price – $64824.51, market capitalisation – $1.279 trillion, trading volume in 24 hours – $ 36.4bn (as of august 01, 2024; 8:18 am East river time).
- Ethereum: Price – $3200, market cap – $384.7bn, volume in trading for the last 24 hours – $19bn ( as of august 01 2024 at 8:22 am with Eastern Daylight time EDT).
- BNB: Price $573, is a ranking market cap of 83.6 billion USD, and a volume of 1.8 billion USD typical for 24-hour periods (As of August 1, 2024, 8:22 AM EDT).
- Solana’s indicators—the price is equal to $170, market capitalization is $79.4 billion, and the trading is at $3.6 billion within 24 hours period – as at 05th august, 2024, 8.23 EDT.
These figures are constantly changing, therefore one cannot hope for a simple rectangle chart, projections and statistics. What also helps is the analysis for instance it is important to understand that there are other cryptocurrencies which may still grow. When assessing an investment, market indicators such as price, market capitalization, 24 hour’s volume, social sentiment, court cases, government barriers, and the white paper of the organization all should be taken into account.
Researching New Cryptocurrencies
Paradoxically, although technological development is based on great research efforts, in the last analysis they are consumable products whether it is for paying for goods such as movies (Bitcoin) or performing tasks on the blockchain (Ethereum).
Here’s how I try to avoid these situations and what are the factors and tools that I am able to identify potentially profitable currencies avoiding scams like rug pulls when those who created and sold these currencies do not have any connection to that currency anymore and the money disappears forever.
Use Cases
A perfect demand have heats or ether ETH used as currency on etherum and hence a perfect use case which can trigger the demand. Ethereum is a target for the DeFi industry and for new projects because of its ease of scalability and scope for further growth. Bitcoin was ideologically a cryptocurrency payment system, but ambitious investors turned it into an asset.
Generally speaking, the more applications a new coin and its supporting blockchain has the more chances it has for growth. This is, however, not a given.
Liquidity
It is essential that a cryptocurrency has enough liquidity, in the sense that a sufficient trading volume exists to get out of a position in short order if necessary. If a new crypto does not have a volume, it may not be worth buying for investment or could be a fraud.
Value
For a short while, let us raise the question of how much one coin would be worth. If you rate it that high, other people are likely to gladly pay the same amount too. Coming back to the idea of dimensions of value, there are those that do not pertain to FIFA, such as an NFT that is emotionally felt for some.
To give a case, some NAP artists are highly active making NFTs out of music. For example, if you buy a song NFT, then you help in selling the music and the buyer has rights over that song and gets the token as well. As it has been already articulated by sports fans, then sports tokens may just be the future of trading cards or even video content.
Additional Considerations
Prospects: where one of the active Crypto coins already exists, even if a certain backer seizes some advantages, i.e. handling a pressing concern, that coin could be a wise gamble simply because it has a bright future.
Supply and Demand: It is general knowledge that crypto currencies have a maximum limitation when it comes to the total number of coins that are ever to be in existence. After that point, there will not be any new coins that can ever be created and such demand may increase or decrease depending on the market and usage.
