Although cryptocurrency is considered a speculative investment or just another bubble by some people, the fact is that those who were able to foresee its future and held on to their digital assets for a long time since crypto’s conception have reaped their success and are now extremely wealthy.
Bitcoin, the largest digital currency in the market based on market capitalization, has shown a drastic increase in valuation over the past few years, resulting in casual investors holding onto their crypto assets for a long time, bringing them huge profits.
What exactly is cryptocurrency?
You probably are already familiar with cryptocurrency, or if you are an investor just starting up, here is a brief background about cryptocurrency.
A cryptocurrency is a decentralized digital currency -meaning the government or central institution does not govern it. It almost has the same utility as fiat currency. It can be used for purchases of goods and services. Its decentralized nature makes the currency unregulated, therefore, prone to volatility.
The explosion of Bitcoin’s price and the emergence of thousands of alternative coins in the crypto market caused the investors to look out for more options or the next big cryptocurrency. Every investor should ask one important question: How will you find out the next big thing in the cryptocurrency world?
Check the price
The price plays a crucial role in finding out the next big hit. It is important to know the price of the token. If you are an investor who does not want to risk a great deal of money in the crypto space, currencies that offer lower prices may match your needs and may be the best deal for your bucks. Several low-priced cryptocurrencies have built good reputations and offer attractive features.
Finding platforms that could assist you in your search could also help, especially when you are new in the crypto industry. Bitcoin Loophole, Kucoin, and Binance are just some of the online platforms with good reviews, which may serve as guides as you invest in cryptocurrencies. One should not overlook the ability to diversify crypto portfolios with low-priced coins.
The Supply Factor
Most cryptocurrencies have a limited number of supplies. When the predetermined number of supplies is reached through mining, the possibility of producing more tokens is ruled-out. But there are instances like Bitcoin where the price increases more as the supply is exhausted.
Check if your chosen currency has the same characteristics or could be the other way around. As an investor, you must make sure to take into consideration the number of supplies before investing.
If we recall, in 2018, Ripple has made remarkable growth. Although the value of XRP declined at the beginning of the year, it still has shown a strong potential for adoption despite the speculative nature of cryptocurrency. This is simply due to the settlement system being made with the central banks and financial institutions with the help of its underlying technology.
If you are one of the investors who does not want to take too much risk, it’s important to have a list of cryptocurrencies with great potential and an edge over others. You are on the right hand if it possesses a strong adoption.
Headlines and Trends
One driving factor affecting new cryptocurrencies’ popularity is the buzz it creates, especially on well-known social media sites. Bitcoin Reddit groups and forums are also good sites that you may visit to check on the latest trends in the crypto space. Finding out which is the most talked-about and further investigating your target crypto can guide you in your investment plans.
Since the creation of Bitcoin, thousands of crypto coins have emerged. Some of them have made a remarkable entrance. For instance, Dogecoin, which started as a meme coin, unexpectedly created noise in social media and the crypto community. It even made its way to the top 10 cryptocurrency list the previous year.
Finding out the next big thing in the crypto world is not as complicated as it seems. Although it is quite difficult to make predictions, sometimes it can be just knowing which ones have reasonable prices, the number of supplies, adaptation and the buzz they create.
More read: How to create a cryptocurrency exchange platform?