Hunt for the Next Big Altcoin in the Crypto-Verse
No matter where in the world you are right now, no matter what you are doing (unless you are living under a rock or in the wilderness cut-off from the reality), you surely must have heard or read about someone making insane amounts of money from crypto.
And if you’re reading this, I’m sure you’ve been enamored by it and would love to make some bucks yourself. So buckle up and let’s go for a ride in the enchanting lanes of the crypto world. Sure, there will be some hits and misses and you’ll stumble upon a lot of shitcoins in your quest for the next top altcoin. But if it pays off in the end, it would make everything worth it.
What are Altcoins and Shitcoins?
Altcoin at first sounds very particular and specific, but it is not. Simply put, an altcoin is nothing but any cryptocurrency other than Bitcoin. Bitcoin was the first crypto to ever come into existence and has been on an unprecedented rise over the years. Since then, thousands of other cryptocurrencies have been launched. While some have scaled new heights, many have dwindled along the way. A few of the prominent altcoins are Ethereum (ETH), Cardano(ADA), Ripple (XRP), Litecoin (LTC), Chainlink (LINK), Solana (SOL), Polkadot (DOT), etc. These are the altcoins that occupy spots in the top 20 of cryptocurrencies in terms of their market capitalization.
These altcoins have made millions of dollars for their early investors and buyers and except ETH, they are yet to take off completely. It may be too late for an everyday Joe like you and me to invest in them heavily (unless we have deep pockets filled with fiat). What we can do is to invest in them as much as our financial situation permits and be on the lookout for the next crypto that will take off.
In this search of the next big altcoin, we are prone to fall prey to scams, cryptocurrency projects that promise the world but don’t have any use case, etc. Shitcoins are nothing but these exact things. Upon falling prey to these traps, people end up losing money and in turn losing hope in the limitless possibilities of crypto.
But not every new crypto is a shitcoin. Every project has a beginning and would have no buyers/holders. Newly launched projects have a huge potential of making money for their early adopters. Identifying these hidden gems is the real issue.
The Iron Law of investing in a new cryptocurrency is to not go “all in” on it. Start with $5-$10 for a couple of months and then slowly proceed to buy more.
Now that we have got the iron law embedded in us, we shall embark on our treasure hunt. Once you’ve got your eyes on a particular crypto, you should put it through the following tests -
- The first step is to use crypto analysis websites like BSCSCAN.
- Once there, navigate to “View BEP-20 Transfers”
- Search for your crypto in the search bar. If the crypto’s name has a grey icon next to its name, it means that it is new. While the old cryptos have colored icons next to their names.
- Once you have found the new crypto, open it and look at the holders of the coin. Search for dead holders of the crypto. Their wallet address would look like “0x000000000000000000000000000000000000dead”.
- The importance of this is that if the wallets with addresses having “dead” at the end are more than 50%, it is more than likely that the crypto is a shitcoin.
- The next most important thing to look at is the crypto’s “Liquidity Pool”. A general rule of thumb to be on the safe side is not to invest in coins with liquidity pools of less than $50K. A liquidity pool is important because shitcoins usually do not have this large liquidity pool.
- The volume of transactions on crypto is also important. Any crypto that has less than 10 transactions per minute could be trouble. And it would be a good idea to give up on that crypto. It is not taking you to the moon.
- The next few steps are much simpler. Check the crypto's social media presence. If it has zero or negligible presence, then it is probably a scam or a shitcoin.
- Lastly, look at the developers behind that cryptocurrency. The legit ones have their developers talking about their projects all over Youtube and other platforms, while those of shitcoins rarely do that.
Once your crypto of choice has passed the above tests, it would be relatively safer to invest in it. Do not under any circumstances invest in it without further studying up about it on your own. And always keep in mind “The Iron Law” of investing in new crypto.
This is again not a piece of financial advice, rather something that has been learned over the past year or so. It worked for me, hopefully, it will for the readers of this as well.
If you’re looking for some great books to read and get started on building your crypto portfolio, these might be of great help
- Kings of Crypto: One Startup’s Quest to Take Cryptocurrency Out of Silicon Valley and Onto Wall Street
- The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order
- Cryptocurrencies: How to Safely Create Stable and Long-term Passive Income by Investing in Cryptocurrencies
- Cryptocurrency Trading: The Ultimate Guide for Beginners to Start Investing in Bitcoin, Ethereum, Litecoin, and Altcoins in 2021 and Beyond. Create … Strategies in Blockchain: 6 (Trading Life)
Let's embark on the journey “To the Moon”……
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