Cryptocurrencies are seen by many as the future of money. These assets promote financial inclusion and provide a great way for people to send money across borders.

Over the years, digital assets have proven to be more than just a fad. Now, we’re seeing a wave of institutions even jumping into the crypto bandwagon and getting their piece of the crypto pie.

If you’re a beginner in the crypto market, it’s easy to get carried away by the multitude of assets you’re seeing almost on a daily basis. Coins themselves seem to always spring up, and knowing which to invest in can be tough.

One of the most important pieces of advice that anyone can get as a crypto investor is to look for new coins that have massive potential. With the world filled with new assets almost every day, finding one that has upside and investing while it’s in its early days will offer a lot of benefits for you as an investor.

Just imagine if you had bought Bitcoin when it was still worth less than US$100 or if you had invested in Solana or Binance coin by this time last year. With the right amount of capital, you’d be sitting on a goldmine right now.

There’s no point in examining missed opportunities. The truth remains that there will always be opportunities for you to invest in new coins and make money.

But, how do you find these new coins with massive upside? Here are a few things to note:

Functionality rules everything else

Regardless of whether it’s a new or an old coin, one thing you should always look out for when investing in crypto is functionality.

The functionality rule is simple, what does this coin have to offer that can attract investors? Once you can answer this question objectively, you’ve got your answer.

Assets like Solana and Binance coin were able to see surges because of their attraction to investors first. Solana is one of the most popular blockchains right now and a true contender for Ethereum’s title.

Binance coin powers Binance, the world’s largest and most liquid crypto exchange. If they didn’t have those working for them, their prices would be nowhere right now.

Also Read: Bitcoin and Ethereum simplified for a five-year-old

Before an asset can begin to get community approval, it is beyond important for it to start by having functionality and something that will always drive users.

Take Volt Inu for example. The asset was recently launched, and it is gaining massive traction because of its use case. Volt Inu focuses on building a multi-faceted investment strategy that can guarantee yields for investors. The asset’s developers are looking to invest in multiple areas of the market, including but not limited to staking yield farming, and mining nodes.

The point for Volt Inu is simple, by diversifying investment, the protocol can make money for everyone involved. So, for passive income investors, this asset makes the most sense.

A use case like this isn’t just solid, it’s practical. It ensures that even in a market downturn, investors will be able to return.

This is what makes an asset like Volt Inu so attractive. As an investor, remember to always examine the use case of a new coin before plunging funds into it.

Community support remains a major factor

Another thing you should keep in mind is community support. One of the reasons why meme coins are so great is that they get a lot of support from their communities and legions of adoring fans. Dogecoin managed to feed off that hype, and so did Shiba Inu.

Usually, the best way to approach new coins is to first figure out their use cases – and then work on building trust within the community.

Know what people are saying about the coin and the general sentiment surrounding it. From there, you have a relatively strong view of what it could look like when it launches.

Examine the asset’s tokenomics

No one always wants to do dirty research, but it is critical for you to do so. Tokenomics are critical for an asset’s growth prospects because they ensure that the asset will be resilient enough to weather some tough times.

When doing research, examine areas like deflation and token structure. An asset with a deflationary structure will be able to keep supply at manageable levels and maintain its price when a market downturn comes.

Demand will be able to grow, and so will the coin’s price. So, it is always recommended that you look out for the coin’s token structure.

Also Read: Why is there no crypto ETF yet in Singapore?

Examine how the coin’s developers plan to implement a burning strategy and what their roadmap for the asset is. This way, you understand their vision for the coin and can decide whether it’s a vision that you can also support.

Availability and future prospects

Finally, it’s also worth considering the coin’s availability and how easy it will be for you to find it.

These days, most assets that launch tend to do so on decentralised exchanges (DEXs) and wallet platforms. While this is great, there also needs to be a strategy for getting these assets on major exchange platforms.

At the end of the day, these centralised platforms are where the bulk of investors trade. If they can’t gain access to your desired coin from there, it will be difficult for the coin to gain the right traction.

While researching, look into the coin’s roadmap to know how its developers plan to get it on top exchanges and into the consciousness of the mainstream crypto market.

–

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image Credit: Canva Pro

The post How to find a good investment with new crypto tokens appeared first on e27.