Find the Next Big Cryptocurrency using Early Indicators
Imagine it is 2011 and you just read a forum entry about this weird thing called "Bitcoin", and it is supposed to replace fiat currency as we know it and also will collapse Wall Street. Awesome! Let's buy a few Bitcoins, its just a few cents. And then imagine yourself fast forwarding a few years and looking at the Bitcoin price rising. How much do those few Bitcoins in your wallet evaluate to in USD? Congratulations, you just turned pennies into millions.
But unfortunately, barely any of the thousands of cryptocurrencies in the market today have the faith of Bitcoin and many many scams exist. But you can still cut through the noise and try to find promising cryptocurrencies that may succeed and are worth investing into.
So how to identify them? One factor that no one can deny is community support; sites like Reddit and Twitter power the publicity and value of many coins, and so coins that have a huge following are likely to increase value as the years go by. Similarly, the amount of attention the Github repo is getting is also a strong indicator of the future value of a coin.
Hence, on alphalerts, you can create a query as follows and find a list of young coins that are a pop:
We specifically look for any coin that has over 1000 Reddit subscribers and over 1000 Github stars (an indicator for considerable interest from the developer community). Lastly, the coin should have less than 50M market capitalization. As one can see, at the time of this writing, a few coins are returned that may be of interest.
You can pick a few of these coins and look at their price history and how much attention they are getting in the news. If they seem promising, maybe buy some of those coins within a small budget and try out a low risk investment. Hopefully, some of those coins will rise in price by a small factor, if not a million.