5 Tips on Finding the Next BTC
While Bitcoin is the most popular and profitable cryptocurrency ever, it is not the only successful one on the electronic market. Ethereum, Litecoin and Ripple have made many investors truly rich too. It is estimated that quick enrichment via such investments will stay trendy for some time. These exact currencies continue to grow in strength at crazy pace. The true is more complicated than it seems though. If you dream about wealth and happiness, you should look for the next lucky coin and choose something else from the long cryptocurrency list. And you must do that quickly, as long as the hype for the digital money goes on.
Who's going to be the next winner?
Well, the answer is not so simple. If it was, nobody would be poor anymore. Picking up the next luck coin is tricky because of a couple of reasons:
- there are almost 1500 cryptocurrencies to choose from,
- one just can't appraise the intrinsic value of digital coins as it is possible with conventional money – there is no such thing as fundamental, infallible metrics,
- all we're left with is a site based of a promise that the cryptocurrencies will finally change our world and replace the traditional national currencies at daily basis.
The need to stay responsible
Think about it for a minute. BTC and similar coins have no intrinsic value, cause they stay intangible even for collectors. They have no returns, so they're not a typical financial asset too – they are an asset without any underlying. Their value depends on how much we are going to appreciate them. The market is so unregulated that you need to stay aware of the risk. If you invest in any cryptocurrency, you should be ready to lose the whole sum.
5 tips to find your lucky coins
- Follow cryptocurrency price and volume growth charts. Look for some confirmation of your predictions – charts are the best confirmation of momentum for digital coins.
- Check cryptocurrencies website to see which coins are the most promising ones. Think about their potential to become a global and actually used currency. If the coin reaches some level of adoption, it can be valued by the conventional quantity theory.
- Find out which cryptocurrencies trade at less than $1. Why should you look for such coins? Low price creates the illusion of being cheap and may seem tempting for many investors (especially beginners). One more thing is that smaller numbers double and triple more quickly and easily (at least in theory). The hype has a power to create a cascade. Remember RubleBit, an under-dollar (0.038) coin which went up 522% during just one week?
- Choose high circulated supply over the maximum supply. Such cryptocurrencies are likely to go up and rise together with overall demand.
- Read Internet forums to see which coins attract a community. Early adopters and innovators from Reddit have the potential to become a larger group of early majority and therefore stimulate price increase.
All these tips must be considered with reason and caution. If you invest on hype instead of certainties, you play the risky game. Stay calm and rely on technical and behavioral finance analysis, but always remember that it's hard to predict when the hype will finally end.