What is a promising cryptocurrency ?

The rise of Bitcoin in recent years has seen many traditional investors pour millions of dollars into the cryptocurrency market.

Now many newcomers are looking for the “next bitcoin”, that is, a currency capable of significantly increasing initial investments. To date, there are hundreds of alternative cryptocurrencies called altcoins.

It is difficult to predict which coins attract the most attention and why.<br>However, when approached correctly, a cryptocurrency can provide regular income if the bubble bursts.

Very often it is the ICO that allows to increase the invested capital (with considerable risks). The first step is to find out what to expect from an ICO. Rational thinking investors can use this information to plan their involvement in a project, explore and prepare capital to invest in the most promising projects.

But remember to evaluate the potential. Not every ICO attracts the attention of investors and raises the required amount of money, and most of them fail at this stage. However, a careful monitoring of the market will give you a clear idea of the possible cost of the currency in the future.

There are various ways in which blockchain can be used as original ideas come up on a daily basis. Currently, the market is full of coins that simply rebuild the “decentralized money” pattern.

Bitcoin was a revolutionary concept at the time it appeared, today all cryptocurrencies have this functionality. Just look for something that will give new and unique ideas to the old concept or set stretch goals.

If the project website talks about something confusing or ambiguous, just stay away from it as this can turn into a total scam. A smart contract that manages the supply of coins has certain rules, such as how many, when, and to whom the coins will be made available, as well as whether unrealized tokens will be invalidated.

In general, the greater the deficit of coins with respect to its offer, the greater its cost in the market. Check how many coins will be sold during the closed presell, during the ICO time slot and everything you can about the coin offering.

Also, the strongest success criteria for any coin is to include viability on exchanges. If Binance, Kraken, or FTX claim to accept a coin that is still in the ICO stage, this is good news. Which blockchain the cryptocurrency uses ?

A new ICO should be launched on any existing blockchain if they do not intend to create their own. The blockchain on which the coin is based defines which of the already existing coins will be used for ICOs.

For example, a project using Ethereum-blockchain will require Ethereum for the coin. It means that it will be exchanged for ETH only, not for any of the others. If you use a little-known blockchain like NEO, this can restrict the price. Don’t forget to take a look at the team, whether they have experience with cryptocurrencies and the target industry.

Most preferable is a large group of industry veterans. The whitepaper is, of course, a crucial point for the project fundamentals. It should be comprehensive, detailed and clarify the purpose and technology of the coin. Other sources of informations may include videos, blog posts, and other team content on social media, specially on Twitter.

Finally, the community is among the main marks of the coin’s potential. Cryptocurrencies tend to have their fans who gather online on Reddit or Discord.

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