Tips On How to Identify the Next Big Cryptocurrency
There is a very little doubt that cryptocurrency has revolutionalized the world economy and has ushered a new set of billionaires. Your ability to identify the next big cryptocurrency could be your ticket to glory.
When bitcoin started, few people gave it a chance of survival and invested in it. Today, they are super rich. Unfortunately, the price of bitcoin has made it practically impossible for new investors to venture into it.
Related: Basic facts about bitcoin cryptocurrency in Nigeria
As at the time of putting up this work, a bitcoin is worth over $8000. That is definitely a huge sum there.
Resultantly, people are hunting for new coins. Some of them are not viable and sustainable and this poses a problem. This is why you be able to identify the next big cryptocurrency.
Now, what should be bothering you should be how the hell will I identify the next big cryptocurrency. It is not that difficult. There are factors to consider and those factors are what we want to work on.
Related: Guide on how to make money with bitcoin cryptocurrency in Nigeria
How to Identify the Next Big Cryptocurrency
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Price is very important
One very important factor to consider when you want to identify the next big cryptocurrency is the price. When you consider the average investors who don’t have much money to put into crypto, the coins that cost little will be considered better than the other coins.
If you have between $5000-$10000 to invest, you will probably invest in coins that cost less. For instance, you won’t buy bitcoin because you are likely going to buy one or less than one or slightly above one.
It seems more rational to invest in coins that cost less. The price of the cryptocurrency will determine if people will invest in it.
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Potentials for Adoption
Coins that have the possibility of being adopted will always go down as viable options. The growth made ripplecoin towards the end of 2017 is a testimony to this fact. Though it has declined in 2018, it has a strong possibility for adoption.
Ripple has a system of settlement that its technology promises to central banks and other financial institutions.
The cryptocurrencies that have this kind of edge over others and could be adopted are definitely better options for your investment.
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Consider the Supply
To identify the next big cryptocurrency will need to factor in the supply. The truth is that most cryptocurrencies have fixed supply. They have a pre-determined maximum supply. The implication is that when that maximum is reached, usually through mining efforts, new tokens will not be produced again.
If interest remains in the coin while the supply is fixed, the price could go up. Therefore, consider the total supply and the current state of the cryptocurrency before you invest.
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Price and Volume
Up-to-date information about cryptocurrency trading is easily available online. Those digital currencies with increasing price and volume of trades are likely to be those that have momentum going forward.
Of course, there is no guarantee that this momentum will maintain, but it is nonetheless a useful way of seeing which digital currencies have the most investor interest for the time being.
