With the influx of money, the cryptocurrency investing landscape has expanded its boundaries and become increasingly complex. In fact, there are over 1.8 million cryptocurrencies available for trading, each accompanied by a plethora of technical terms that can be challenging to comprehend but are used to promote their value propositions. So, the question arises: how can you identify cryptocurrencies suitable for investment? Understanding where to search and how to evaluate them will assist you in determining the worthiness of investing in them.
Where To Find New Cryptocurrencies
Before embarking on your search, it is essential to reflect on a few crucial questions, such as:
– Is investing in an initial coin offering (ICO) a viable option?
– Are non-fungible tokens (NFTs) a wise investment?
– What exactly is decentralized finance (DeFi)?
Navigating the realm of cryptocurrencies can be perplexing. The lack of reliable and measurable evaluation criteria, coupled with an abundance of scams, has only added to the confusion and wariness among potential investors.
However, despite these challenges, cryptocurrencies prove to be an asset class worth exploring. They can introduce diversity to your portfolio, and their price volatility has the potential to yield substantial returns. Numerous sources exist where you can keep track of emerging cryptocurrencies.
| Cryptocurrency Exchanges | Binance, Coinbase, Crypto.com, Gemini, Kraken |
| Data Aggregators | CoinGecko, CoinMarketCap |
| Social Media | Discord, Telegram, X (formerly Twitter) |
| Websites | Smith & Crown, Top ICO List |
| Tools | PooCoin Charts, Token Sniffer |
| Decentralized Finance Platforms | These applications supplant traditional financial services. Some might have tokens or coins with prospects. |
| NFT Marketplaces | OpenSea, Rarible, and SuperRare are popular marketplaces to look for new NFTs that show promise. |
| Initial Coin Offerings | Initial coin offerings are fundraising events for possible coin releases. |
| Exchange-Traded Funds | You can invest indirectly in crypto through derivatives that trade on mainstream exchanges. |
Exchanges
Cryptocurrency exchanges serve as dependable platforms for discovering new investment opportunities. For instance, Coinbase typically features newly launched cryptocurrencies on its website, although creating an account is necessary for enhanced accessibility. Similarly, Binance provides a list of new cryptocurrencies for you to explore and conduct further research.
Data Aggregators
Data aggregators play a vital role in collecting and organizing information on particular subjects. When it comes to cryptocurrencies, data aggregators prove invaluable in discovering new digital currencies. For instance, CoinMarketCap gathers and presents a comprehensive list of recently launched cryptocurrencies, including their prices, market capitalization, and trading volume. Such services enable you to gauge investor sentiment and assess the potential of each cryptocurrency.
CoinGecko, another data aggregator, provides a similar offering by listing newly introduced coins along with comparable information available on CoinMarketCap.
Social Media
Social media platforms are renowned for their rapid information dissemination capabilities. X (formerly Twitter), for instance, stands out as one of the swiftest and most responsive platforms in the United States. It is effortless to locate cryptocurrency developers and founders on X, who frequently tweet about updates or new coins associated with their cryptocurrencies.
Utilizing notifications for specific keywords on X proves particularly advantageous. By setting up alerts for phrases like “new crypto,” “crypto release,” or simply “crypto,” you can receive timely notifications whenever there are tweets related to cryptocurrencies.
Telegram is another instant messaging platform that excels at delivering up-to-the-minute developments in the world of cryptocurrencies.
Websites
To explore new cryptocurrencies, numerous websites are at your disposal. Among the reputable options, you can refer to platforms like Top ICO List and Smith & Crown.
Tools
To verify the validity of a cryptocurrency, utilize these tools:
1. PooCoin Charts: Enter the token name or address to view transaction, contract, holder, and price information. This helps you see if others are active.
2. Token Sniffer: Enter the cryptocurrency’s name or address to access an audit. For example, a scan of Ax-1 Orbit (address 0x0c…b805) on Aug. 13, 2022, revealed the following:
– Warning: Coin flagged for scam, bug, or hack.
– Swap Analysis: Token is sellable with buy-and-sell fee below 10%.
– Contract Analysis: Verified contract with no similar prior contracts. Source not owner, no special creator permissions.
– Holder Analysis: Creator holds <5% of supply, other holders <5% of supply.
– Liquidity Analysis: Insufficient liquidity, 95% burned/locked, creator holds <5% of liquidity.
– Token Similarities: None.
3. Token Sniffer also allows you to view contract code and generate a bubble map displaying creator’s address, top 100 holders’ addresses, and their respective percentages. It also highlights burn addresses used to permanently remove coins from circulation.
DeFi Platforms
DeFi platforms operate similarly to traditional financial marketplaces, but with the utilization of smart contracts for transaction execution. Within their networks, many DeFi platforms employ native tokens to facilitate transactions. Pancake Swap, Uniswap, and Aave are some examples of DeFi platforms.
Non-Fungible Token (NFT) Marketplaces
NFTs are unique digital assets tokenized through an alphanumeric sequence stored on a blockchain. This process ensures unquestionable ownership verified by network validators.
NFTs are crucial in the metaverse, a digital landscape trend. OpenSea and Rarible are popular NFT marketplaces offering a wide price range.
Specialized marketplaces exist for specific industries or sports. The NBA has TopShot for basketball NFTs, and the NFL partnered with Dapper Labs for exclusive digital video highlights of historic moments.
Initial Coin Offerings (ICOs)
ICOs surpassed venture capital as the main fundraising method for entrepreneurs in 2018. Both startups and established companies joined the ICO trend. However, the ICO bubble collapsed due to widespread scams and increased scrutiny from the SEC. Although ICOs still exist, they are now heavily regulated and far less common.
Exchange-Traded Funds (ETFs)
Indirect investment in cryptocurrencies is possible by trading derivatives on mainstream exchanges. Investors seeking indirect exposure to crypto often favor the popular Chicago Mercantile Exchange (CME) crypto futures, which include Bitcoin and ether futures. In 2021, crypto markets saw the introduction of Bitcoin-linked exchange-traded funds (ETFs) based on CME’s Bitcoin futures. Brokerages are actively striving to convince the SEC to approve more crypto-linked ETFs, resulting in a growing number of such offerings.
Researching New Crypto Coins
Cryptocurrencies, beyond their technical terminology, have specific purposes. Bitcoin, for instance, serves as a payment method, while ether acts as a utility token for blockchain transactions. To avoid falling into a potential scam known as a “rug pull,” there are certain factors and tools you can utilize to identify reliable coins. These coins are not prone to developers accepting payments and subsequently removing them from the platform, while also keeping the funds you invested.
Use Cases
Ethereum’s cryptocurrency, ether (ETH), is utilized as a payment system on its blockchain. Within Ethereum, the term “gas” refers to the payment made to verify transactions, specifically covering energy usage. This characteristic of ETH makes it an attractive option for those seeking incentives to purchase it. With its focus on scalability and future development, Ethereum provides an optimal environment to build decentralized finance (DeFi) applications.
The applications for Ethereum, a global virtual machine that empowers DeFi and is rumored to be the driving force behind Web 3, continue to expand. New utility tokens specifically designed to operate on the Ethereum Virtual Machine (EVM) emerge on a daily basis.
In contrast, Bitcoin was originally designed solely as a payment method. However, it gained value among investors before 2022 when they observed price increases on cryptocurrency exchanges. Just before these price surges, Bitcoin acquired a new use case as a store of value and an asset for speculative investors.
The number of use cases a new cryptocurrency and its supporting blockchain possess directly influences the likelihood of the cryptocurrency’s longevity and growth. Nonetheless, this principle may not always hold true.
Liquidity
Having sufficient trading volume is crucial for a cryptocurrency to ensure liquidity. This implies being able to sell it promptly when necessary. If you come across a cryptocurrency with negligible trading volume, it is advisable to exercise patience and observe if it gains any traction. If other investors are not actively trading a newly introduced crypto coin in significant quantities, it could indicate that it is not currently worth purchasing or may even be a fraudulent scheme.
Value
Identifying the value of a coin is important as it is likely that if it holds value to you, others will also value it. This value is not limited to monetary worth, but can also be intangible, like a personal connection to an NFT. For instance, owning an NFT that triggers a happy memory can be a way to cherish that memory and hope for growth.
Some songwriters and musicians are now creating NFTs for their music. Buying a song NFT directly supports the artists and grants you ownership of the token along with any rights the artist has granted. These NFTs in the sports industry can be compared to trading cards or future videos.
Here are some additional things to consider:
– Price matters: When looking for the next superstar, take into account the price of the token. Lower-priced currencies may be the best option for average investors with limited funds in the cryptocurrency space.
– Adoption prospects: Identifying a cryptocurrency that has an edge over others and has a higher chance of being widely adopted can be a good investment opportunity.
– Supply plays a role: Most cryptocurrencies have a predetermined maximum supply, and once that limit is reached, no new tokens will be produced, typically through mining efforts.
– Price and volume: Real-time information about cryptocurrency trading is easily accessible online. Digital currencies with increasing prices and trading volume are likely to have momentum and attract investor interest, although there is no guarantee that this momentum will be sustained.
How Do I Get New Cryptocurrencies?
Cryptocurrency exchanges, decentralized finance platforms, non-fungible token marketplaces, and initial coin offerings are places where you can purchase them and other digital assets.
How Do I Acquire a New Cryptocurrency Before Listing?
Before they are listed on an exchange, potential new cryptocurrencies might be offered in a presale. These presales could be announced on social media platforms, news websites, or specialized crypto-tracking sites such as CoinMarketCap. It is crucial to conduct comprehensive research on a project and its team prior to investing, as with any other crypto asset.
How Often Are New Cryptocurrencies Launched?
New cryptocurrencies are constantly emerging. Daily, CoinMarketCap, a data aggregator, updates its list with new coins and tokens, while Top ICO List provides information about new ICOs. Additionally, platforms like X and Telegram are popular for announcing new coins.
The Bottom Line
Cryptocurrencies have transitioned from the outskirts of mainstream finance to become an investment asset. Nevertheless, the range of available cryptocurrencies and crypto-related offerings remains limited, necessitating a thorough assessment.
If you have a desire to invest in digital assets and explore new cryptocurrencies, it is advisable to consult with a financial expert initially. They can assist in determining whether these investments align with your objectives and financial situation.
(Reference: investopedia)