How to hunt for promising cryptocurrencies?

The spectrum of cryptocurrencies on the market today is immense. Many potential investors find it hard to choose a promising cryptocurrency to invest in and not fail to maximize their benefits in the future. So, which cryptocurrency to invest in?

Crypto investors have access to a large number of different resources that can help in finding cryptocurrencies and getting important information about them. CoinMarketCap service is the one, which is very popular among crypto investors. Moreover, with the help of this website, users can track the price dynamics of the digital assets they are interested in, and look at sales volumes, ratings, and supplies.

Next, you have to choose the asset that has the greatest value to you. But how do you know that, e.g. ADA vs ICP is exactly what you need? How to find new cryptocurrencies that will take off? 

If a trader is going to trade actively, e.g. to swap POLY to HORD, and make transactions in short periods, then he should pay special attention to technical analysis tools. However, those crypto holders who plan to invest in crypto for a long-term perspective should take into account a number of factors that can significantly affect the change in the rate of a particular digital coin in the distant future. Such parameters include

• The potential usefulness of the coin for a large number of people. Users are usually attracted by the speed and ease of transactions, the possibility of anonymous transactions, and security. Also, the coin should have some advantages or distinctive features that favorably distinguish it from competitors.
• The reputation of the project developers. Any scandal, unprofessional behavior of the team, or inability to keep the promises made leads to a collapse of the rate and often becomes a verdict for the future of the crypto coin. And, on the contrary, a well-coordinated team with solid experience can turn even crypto without a special idea into a reliable digital currency that inspires trust among users.
• The age of the coin. If the token has just come into the world, it is very complicated to predict its fate. Perhaps it will "shoot up" and multiply its value manyfold. But it is no less likely that the coin will simply fall into oblivion. Therefore, for long-term investments, you should choose assets among those cryptocurrencies that have been circulating on the market for the long run.
• Presence of an active community. The more people believe in the success of a particular crypto, the larger its community will be. Without a community striving to make the coin the best, it is hard to count on the high growth of the asset in the long run.
• Events from the world of finance, economics, and politics. If governments begin to tighten legislation in the cryptocurrency sphere, all digital money will start to sag in value. And if some countries allow the free use of crypto as a means of settlement, the value of coins will increase. A long-term investor should monitor the news to make more informed decisions about his investment portfolio.

Once you have opted for an asset, you have to check its real value. How to do it? 

First, technical analysis indicators come to your aid. They indicate overbought and oversold tokens and other fundamental factors. How successful a particular cryptocurrency will be depends on the company`s plans for further project development and ways to achieve its goals.

Secondly, it is worth paying attention to initial token offerings (ICO, IEO, and IDO). We explain: that if money is invested in the project at the very beginning of its launch, then the profit from investments can reach the maximum figures because in this way there is an entry into the asset at the lowest and most favorable price.

How many cryptocurrencies are there in the world?

As of the end of March 2024, the number of cryptocurrencies tracked by CoinMarketCap, i.e. the largest digital asset market data site was 23,095, which means that 938 new digital assets have been added to the global cryptocurrency market this year. As a result, the market capitalization of cryptocurrencies rose above $1.19 trillion, reflecting the bullish momentum.