How to Find New Cryptocurrencies for Investment

Cryptocurrencies are going to make it out from the current bearish trend or they will spend another year like 2022. Bitcoin pulled the entire market up in 2023 and gained nearly 53% from the bottom of $16,000 to a high of %$25,200 on February 23rd. Bitcoin is heading back to the support zone again. There is significant support between $22,167 and $21,533 and this level can hold prices up. Needless to say, if Bitcoin stabilizes and rises above, so does the whole crypto market.
There are over 20,000 crypto coins and tokens circulating on different blockchains and with the upcoming trend shift, many more will appear. Since new cryptocurrencies have a higher ROI and higher risk, how do we minimize that risk when picking the next 100x coin to invest in?

Before Investing:

1. Defining your expectations:

Investors in cryptocurrency typically expect high returns, diversification benefits, and long-term growth. However, crypto is a game of emotion where both greed and fear can cause fatal damage.

2. Shortlisting

Make a list of the apparently attractive projects and then run an extensive technical and fundamental analysis to choose what you want to invest in.

3. Planning the exit

It is important to define how much profit is your goal; then, no matter how crazy the rest of the community is going, you exit. Sometimes, when a coin is at its peak, some traders would jump in and lose everything as the earlier investor starts selling at that point.
Also, the contrary is correct; you must define how much loss can you bear. When it hits that stop loss, you sell the coin even if the project is going to go to the moon the next day. Trading and investing both require strong habits and a mature attitude. Make sure your decisions are not subjective.

Choosing the right Coin to invest in:

Social Media and Word of Mouth:

Crypto has gotten to a point now where legit new projects are being invented every second, and there's no way you can keep track of all of them. Crypto is very new, especially when it comes to new projects being built. Generally, when something is new its creators market it: they run ads, telling influencers to promote it.
But with crypto, you can't do that. A lot of ad platforms don't allow ads to be run about crypto. So what's the next best option? Word of mouth. And how do you get word of mouth across? By sharing news on chat or social media. If we are pretty deep in the crypto community, we don't go out looking for these projects — they come to us. We just need to follow a couple of crypto Youtubers, join a couple of discord groups, and keep an eye on Twitter posts. Also, most of these projects are winning traction from TikTok videos.
As we scroll through our feeds on social media, there's always something having to do with crypto. And from that, we might pick and choose what we want to do more research on.

Problem with Word of Mouth

True, by the time you wait to hear about a new coin on social media, you have pretty much missed out on many gains, but you have to understand most crypto projects will not even be relevant for probably one year. So it’s fine with to miss out on some gain in order to have a safer return.

There are a couple of things you should look at when you come across a new project – or, indeed, any coin that you want to invest in.

The Layered approach:

To make sure we land on a relatively safer project there’s a special system to follow. Think of it like a pyramid security system and for each layer you look at something important. Shortlist a bunch of coins that you think might be a good pick to invest in and test those with this pyramid-layered approach

Anytime a coin doesn't pass a layer, it gets moved out and you cannot think twice about it. If it passes, then it goes to the next layer and so on until it gets to the top.

Layer 1:

Layer one is a quick look at certain indicators. First, look at the project website, the day the domain was created, the day it will expire, and contact information in the country the domain was registered in. All this is all very important information.

How long the project has been around is a really important: the project should have been in operation at least two weeks. Investing right after this test is passed could be a high risk. To be on the safer side, maybe one or two months' domain age should be fine. After that age, you should look at the country in which the domain was created. If it was a third-world country, that’s a red flag. It sounds weird to judge but that’s what we are doing here, as crypto is trustless and the only thing that convinces us to put our money in are these factors.

Layer 2:

This is the website stage. Here you go through the functionality and the UI of the website. Try to focus on the smoothness of the website: see if there are glitches and make sure all the buttons work. Since scam projects don’t want to spend money, they won’t probably spend time on perfecting these minor bugs.

Layer 3:

At this stage, you should try to become a part of the project's community and look at recent developments. Joining cryptocurrency communities on social media platforms, such as Discord, Twitter, or Telegram, can provide valuable insights into new and upcoming updates of the project. You can also ask for recommendations or insights from experienced investors in these communities.

Layer 4:

You should explore the online resources available like cryptocurrency tracking platforms such as CoinMarketCap, CoinGecko, Token Sniffer, and LiveCoinWatch. These platforms allow you to filter cryptocurrencies based on different criteria, including
market cap, price,
and volume ; they may even read smart contracts for you. These platforms can be helpful in identifying new cryptocurrencies that may have potential.

Conclusion:

Since a majority of the new projects are scams, you just have to do a really good job finding ones that aren't. Follow a systematic approach instead of falling for the hype of random coins which eventually become irrelevant.