How To Find New Cryptos Coming Out
If you were one of the lucky few that bought bitcoin when it launched at an opening price of a few cents, you are probably laughing all the way to the bank now. Many casual investors who timed it right and held onto their bitcoin became millionaires within a few years.
Similar to stocks, buying a cryptocurrency as early as possible will usually give you the most favourable price. If you purchased PancakeSwap in late 2020 for $1.10 per token, you could have easily flipped it a mere six months later for $44.
Finding the next crypto superstar in its earliest stage is also a great way of entering the market if you don’t have a lot of money to spend. While the average person would be hard-pressed to afford bitcoin, plenty of new entrants to the market could take off at any moment.
The question is: how can you find those coins early enough to take advantage of the low price and enjoy high returns at a later stage?
Finding New Tokens Early
In 2013, in the early days of bitcoin, there were only about sixty different cryptocurrencies available to potential investors. In less than a decade, that number shot up to 6000 different digital tokens.
Between the beginning of November 2021 and the third week of January 2022, over 2300 new currencies were created and launched worldwide - nearly 30 every day. Creating a new digital cryptocurrency is relatively easy, but it’s much harder to create a winning one. Some say that 20 currencies make up 90% of the total market.
To derive any real value from your crypto investment, you have to a) find the coins early at a low price and b) do your homework to make sure the coin is legitimate and has the potential to grow. Here are a few places to start:
YouTube and Social Media
If you ask for initial investment advice on Reddit, you’ll usually get told to follow new crypto creators on Twitter or follow a few crypto advisors on YouTube.
While there are many legitimate social media channels, there are also thousands of scammers touting phoney crypto coins for sale to line their own pockets or to generate views to earn revenues with bogus investment advice. If you do receive a hot tip-off on social media, do your own research into the team profile, artwork, buy-in pricing, and more.
You could also do the most obvious thing and set up Google alerts for new crypto launches, but if you can find a new crypto coin in your search results - so can everybody else. You need real insider information and insight to uncover the gems!
Finding the ICOs
The first step to finding a new coin offering is to look for initial coin offerings (ICOs). This is the cryptocurrency industry’s equivalent to an IPO. When businesses struggled to find funding for their growth plans, they would raise funds by pitching a portion of their shares to the public for sale, known as an initial public offering.
When cryptocurrencies started becoming more popular, and companies began jumping on the bandwagon, they copied this technique by selling a portion of their total crypto token supply through ICOs. It became a hit and raised nearly $5 billion by the end of 2017.
Finding upcoming ICOs is a great way of finding your next investment. Still, after several high-profile scam ICOs, it’s clear that you need to know exactly what the red flags are before parting with your money, making ICOs less attractive to beginner investors.
You can usually find information about upcoming ICOs via ICOAlert, Reddit, Twitter, and crypto forums.
Using IDO Launchpads
Crypto launchpads or incubators, sometimes called Initial DEX Offerings (IDOs), are platforms that allow blockchain-based companies to raise capital by giving early pre-sale access to groups of investors. IDOs are different from ICOs because the currencies are listed on decentralised exchanges (DEXs).
This means lower pricing for the investors and lower listing fees for the crypto company. Launchpads also tend to have a more rigorous vetting and onboarding process for new cryptocurrencies, offering greater security for investors, which prevents rug-pull projects. Knowledge community members tend to vet the offerings, which means that first-time investors benefit from their experience.
The downside of this method of listing is that it can be difficult for buyers to use and have far less liquidity than top centralised exchanges. Top launchpads include PinkSale, DxSale, and Unicrypt.
Using Early Listing Sites
Early on, we mentioned that the key to finding a crypto investment that really pays off is to discover the coins early (to take advantage of low pricing) and do some additional digging to find out whether or not the coin is legitimate and has intrinsic value. Early listing sites like Coinscope are your best bet of doing both.
Coinscope launched to make crypto discoverable and investment easy. It provides access to legitimate, audited cryptocurrencies as they are created and provides all of the information and tools an investor needs to interrogate the coin’s growth potential.
The platform conducts a stringent audit that monitors all aspects of a new crypto project and generates an informative, unbiased report and score that the community can access and review before making a purchase.
There are also real-time price charts, price changing indicators, market caps, information about coin burning and supply, and a portfolio feature that allow users to track the coins in their portfolio and watch the profits, losses, and overall valuation of the coins they are holding at any time.
This makes it easy for investors to view and evaluate new crypto tokens as they emerge and conduct a thorough investigation in the early stages.
Conclusion
Do you have aspirations of becoming a crypto millionaire? Finding the next big thing in cryptocurrency may be the key to realising your goal, but you have to use the right tools at the right time to do so. Get in early, do your due diligence, and you will reap the rewards.
