Making decisions on what cryptocurrency to invest in both for long and short term trading can be a daunting task. Investors are plagued with so much questions. There are thousands of listed cryptocurrencies, each promising huge returns from the developers.
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The major questions usually are: Will the cryptocurrency I am buying going to be profitable ? How do I identify profitable cryptocurrencies ? What do I look out for when researching ?
This article will be looking at eight tips crypto traders should look out for when researching for cryptocurrencies.
• Research For Online Visibility
Cryptocurrency is a digital asset with internet space as it’s operating environment. When making decisions on what crypto to invest in, look out for the visibility quotient of such token/coin. Coin popularity plays a big role in volume of trade. Other investors buy what they see or what is in trend. You can access visibility by checking social media platforms and access how often such coin trends. Check Twitter trends , Telegram, Facebook and other crypto friendly social media apps and check the algorithm of the coin trend.
• Reserach For Profit Margin
A crypto trader aim is to make profit. When researching, look out for coin that grows it’s profit margin daily. Some cryptocurrencies have turned into what I call stablecoions, they don’t grow profits. They remain at the same price you bought them in months. You can search historic data for any crypto you want to buy. Check the opening and closing prices, but most importantly, check difference between the daily highest and lowest price to ascertain the daily probable profits.
• Research For Consistency in Appearing on Gainers List.
Cryptocurrencies that perpetually shows up on the gainers list are preferable for any traders looking to make profit. Observe the daily gainers list, look out for crypto that usually appears often each week. What to do next is buy such crypto when the price has dipped for the day preferably at an average of the previous day low and purchase.
• Research For Upcoming Events.
Follow as much as many verified crypto pages as you can on social media like Twitter, Telegram and Facebook. This will provide you information on any upcoming events that has the potential of shooting up price of any crpto tagged to such event. Prices are usually expected to rise when crypto developers announce promotional events, coin burnings and some other events to boost profits and grow price.
• Research For New Listings Announcements.
Newly launched coins usually attract huge buyers due to publicity following the launch and promise of favourable return on investments. Buy at lows and set sell at a price a little low around the projected targeted high.
Also look out for listing announcements from big crypto exchange platforms for already existing cryptocurrency. Look out for the announced cryptocurrency at any crypto exchange that already listed it and buy while awaiting the new listing in another crypto exchange platform. Example is Binance announcing to list a crypto already listed on Hotbit. Purchase from Hotbit before Binance listing so that you can profit from it when Binance eventual lists it. Prices usually go up on listing days.
•Research For Fundamental Projects.
So many cryptocurrencies have different benefits the founders claim they provide, but actually very little really stand out from the pack. Can these projects deliver upon their promise? Are the developers willing to push these projects albiet how fantastic, to get the needed public adoption. While it is okay to buy crypto that provides tangible value, also check out how passionate the developer is in pushing for it’s adoption based on the publicity campaigns and adverts on the crypto. Is decentralization of a given industry improve user experience? Assuming that’s the niche the developer claims to better on. Or is it simply a way for the founders to fill their pockets, as we have so often seen?
• Research On Transaction Volume.
Check out crypto daily data sites and exchange apps for a crypto transactions volume over time. If the crypto records daily or weekly huge volumes, that means it has investors monitoring and buying it.
• Utilize The Power Of Crypto Forums
Explore the option of joining WhatsApp groups, telegram groups, Reddit crypto niche forums. These platforms will provide you informations on upcoming events, announcements, new listings, Airdrops. The main benefit is that you can see it as avenue to get tips for crypto selection and then research the selected crypto mentioned in these forums to ascertain if it meets the indices for profit.
Implementing this research strategies can be a great start for selecting that crypto that moves up and eventually recuperating profits for your investments. These strategies are not rubber stamped.
You can also identify other strategies unique for you in the course of your crypto trading experiences while applying the presented guides in this article.