How to find a large and profitable crypto project?
Do you know how to find a major crypto project? It is very important to consider new trends and potentials that can help you find a really valuable project. Let’s find out how to make sure a big find doesn’t slip by you!
If you’ve ever wondered how to spot the next crypto trend, you’ve probably turned to historical events to try to identify cyclical trends.
In this article, we’ll discuss how to find a valuable crypto project and describe some important areas of research to look at before investing in digital assets. In addition, we will talk about what gives value and potential to a certain crypto project.
How to find a new crypto project?
The widespread adoption of blockchain and Web3 has caused a global shift in attitudes toward cryptocurrency. Not so long ago, the media spoke negatively about Bitcoin and cryptocurrency in general. It was assumed that cryptocurrency was a hoax, a fraud, doomed to failure and suitable only for illegal activities.
Now let’s move forward a few years, where there is a very different view. From the introduction of Bitcoin as legal tender in El Salvador, to advances in regulatory policy, global attitudes toward cryptocurrency have become much warmer than ever before.
Technological advances and real-world use cases are making cryptoprojects very popular. However, high utility technology is not the only driving force behind successful crypto projects. To find out how to find a major crypto project, it is important to understand what exactly makes that project successful.
Let’s not focus on intraday price movements and social media fashions. More often than not, a successful crypto project has a few things in common. Below we will look at some of them, and figure out how to find a large and valuable crypto project.
Before investing in a coin or token, it is worth taking the time to research the technology behind the asset. In fact, it is a very worthwhile decision to consider the options for that particular technology. Many successful investors want to understand the vision, and be confident in the reputation and reliability of the team behind the project.
A groundbreaking innovation or improvement to an existing project with high utility could indicate that the asset serves as a good omen for acquisition. In addition, the token allocation model and maximum supply is something investors would do well to keep an eye on.
Another factor to consider when choosing a crypto project is the scarcity of the crypto asset. The turnover and maximum supply of a cryptoasset gives investors an idea of how the asset may perform in the future. For example, only about 20% of Bitcoin is left for mining.
Conversely, some coins and tokens have unlimited supply. Thus, it is often wise to consider the offerings of any crypto-asset before investing in it.
Marketing and utility
Good or bad, the success of a crypto-asset largely depends on the excitement around the project created by the marketing team and the community itself. A token can have all the utility in the world, but if no one is interested in buying it, it will most likely remain unclaimed.
Similarly, a token with little or no utility, but thanks to the unrealistic hype surrounding it, could be at the peak of popularity.
Another consideration for upside potential is the asset’s historical price compared to its current price. For example, if an altcoin has made significant gains in previous bullish cycles but is currently down 80-90%, there is still a chance that investors will see great upside potential again. In addition, the success of a crypto-asset may depend on current trends and narratives.
Trends and Narratives
A good indicator of a project’s potential for success is how well it fits into current narratives. For example, crypto gaming, non-interchangeable tokens (NFT), second-tier scaling solutions, and decentralized finance (DeFi) have all been very much discussed in recent years.
During the peak of these trends, several projects emerge that simply mimic the most efficient project well. Although these products may only work well in the short term, few manage to stay afloat even without an element of innovation or originality.
It is always worth paying attention to trends and narratives to understand what is popular and what is not. Don’t forget, cryptocurrency prices depend on supply and demand.
Thus, trends can lead to rapid but short-term price volatility. Some investors believe that it is still worthwhile to hedge against such trends, even if they hardly have any long-term potential, because regardless of personal biases, many believe that “the trend is your friend to the end!”
The cryptocurrency market is closely related to traditional markets such as stocks and commodities. Accordingly, any major global event or phenomenon can shake the crypto world as well. In addition, macroeconomic trends are often amplified in the cryptosphere. For example, a stock market crash of 20% can seem like a significant problem for traditional investors.
Volatility in crypto is a double-edged sword with many winners and even more losers. Understanding which events can cause a crash or bullish reversal can help you find ideal opportunities for your next investment.
Consider studying how different events unfold in different markets. Markets love certainty, and accordingly, any major announcement affecting a large number of people can help change the mood of the market in either direction.
Any, even a minor market problem is often a moment when speculators try to capitalize on declining market confidence. A chain reaction of sell-offs can provoke panic. However, the astute investor often uses this as an opportunity to buy high utility assets at a reduced price.
Conversely, when the entire world order depends on a single statement from a world leader, it is difficult for any investor to be confident in the face of widespread uncertainty. Therefore, keeping track of world news and events can help you make informed investment decisions.
When investing in cryptocurrency, it’s worth considering any project that develops the blockchain industry and solves real problems. Important announcements can cause a stir in the market, in case they are made in time.
Technical updates, feature deployments and protocol updates can indicate that a project is working hard to meet industry needs. Thus, a strong roadmap with achievable milestones is a common attribute of a successful crypto project.
Do your own research
Since you are reading this article, we can safely assume that you have already done your own research. Searching reputable media is one of the best ways to figure out how to find a major crypto project.
Any Twitter or YouTube user can tell you what their favorite coin is this week. However, getting high-quality content from verified sources will give you a significant advantage over your fellow crypto-worlders!
There’s no doubt that social media has led to a crazy price movement of little-used meme coins. But following the trend is not a sustainable investment strategy. So to have an edge over your competitors, a good decision is to take the time to learn what influences market movements.
Several websites provide high-quality data and analytics covering various applications in the industry. For example, Lunar Crush is a website that gathers social media trends for digital assets.
Using multiple sources of information, Lunar Crush gives each project an overall score based on how popular the project is on social media. Other important tools include DeFi Pulse, which ranks decentralized finance (DeFi) protocols according to the total blocked value (TVL) of any protocol.
For those who view cryptocurrency as nothing more than an investment vehicle for quick profits, technical analysis is an important tool for studying market movements.
Technical analysis is a methodology for predicting future price movements, using historical data. By combining trading patterns with technical indicators, traders can accurately predict success.
Indicators include trading volumes, simple moving average (SMA), exponential moving average (EMA), Bollinger lines and stochastics. In addition, many crypto investors combine technical analysis with fundamental analysis (FA) and network analysis to gain a broader view of the markets.
While FA looks at broader macroeconomic implications, network analysis looks at blockchain activity. This includes several factors, such as the average holding time of an asset and the number of active wallet addresses.
If you want to improve your cryptocurrency investing strategy, the best place to start is by investing in yourself and your education. There has never been a better time to learn a new skill in the evolving field of technology. In addition, understanding how blockchain and Web3 work on a technical level allows you to see the real value of new technologies.
The bottom line
We’re not giving financial advice here. But we do discuss strategies to help you learn how to find a major crypto project. If you find a project with a strong team, solid fundamentals, high utility and an active community, you will clearly be close to success.
Understanding recurring trends can help you find a gem in the forest of altcoins. Hopefully, after reading this article and drawing your own conclusions, you’ll be able to confidently answer the question “how do I find a major crypto project?”