Investing in good crypto projects in their early stages and making a great amount of profit off them is the dream of every crypto trader.
Factors like initial DEX offerings (IDOs), airdrops, and the hype as well as attention that these crypto projects generate, are contributing factors to the surge in the prices of these coins.
Despite these, traders have lost their investments to scam projects by scammers and crypto developers who abandoned crypto projects and ran away with investors’ funds.
In fact, about 90% of new coins are said to be scam projects or pumps and dumps while a good number of them are not listed on Coingecko and Coinmarketcap.
How then can you find and invest in great crypto projects?
Market trends
The first step for you is to identify market trends because it will help you determine the direction the price of a cryptocurrency is moving.
Because cryptocurrencies are volatile, the price chart of a coin may look like a succession of ups and downs.
For example, when the chart shows a series of highs and lows, it indicates an upward trend or bullish trend. You get a series of lower highs and lows when it shows a downward trend or bearish trend, while a horizontal trend is also known as a sideways trend or flat occurs when the price does not experience sharp jumps and falls.
Following the trend is a sure way to make a profit.
Coin category
The next step after you have identified the trend is knowing what category of coin is trending.
The crypto market is filled with different coins. According to the number of coins recorded on Coingecko, there are about 10393 coins.
The coins fall into different categories such as Memecoins, NFT tokens, Decentralized Finance (DeFi), Gaming, etc.
There are coins that have experience price surge. An example is Shiba Inu which experienced a 700% price surge in October.
Data aggregator
The final step after figuring out the different coin categories is using a data aggregator. This is an important step in your quest for a great project.
You can use any of the two most used data aggregators: Coingecko and Coinmarketcap.
They allow you spot new projects, check out new projects as they get listed, and choose new crypto projects with actual use cases or products.
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