When trading or investing cryptocurrency in the current markets out there, traders could get overwhelmed by the development in this rapidly changing environment. Till today the total market has grown immensely in a very short period of time and this also comes with a lot of ’Fear Uncertainty and Doubt(FUD)’. How does a cryptocurrency trader survive in this kind of market without being drowned in the overwhelming supply of new information coming to the markets on a daily basis?
The answer is very simple. If you trade cryptocurrency you should have a vision and also a strong belief this new technology will be implemented someday. Also, stick to the basics and focus first on the most successful altcoins currently in the market. The popular website Coinmarketcap is the first place to go for getting this sort of information. From here make a plan which altcoin to buy and follow this plan to pick up the altcoins which will likely start a new journey ‘to the moon’. In this article, I will give some steps to set up a decent plan and also give my opinion on altcoins which are very interesting to buy. So how do you make a plan to find the best altcoin opportunities to invest in?
Steps for finding altcoin opportunities to invest
- Find coins with a large community
If you are an investor and want to invest in an altcoin for holding on a 2 till 5 year period. In this case, the top 20 altcoins on Coinmarketcap is the best choice. The reason they are there is that all these projects have large communities. This community plays a key role in the development of new products and services. When the bull-market arrives these altcoins will likely be the first which will explode in price.
- Stick to the top 20 altcoins first
Another reason the top 20 is very interesting is the reason that they are solving the traditional infrastructures. Currently, the traditional infrastructure has the following problems: Inflation, privacy, automation, banking, how to deal with Internet of Things or online video games.
- Bitcoin and Ethereum
Cryptocurrency all started with Bitcoin and a few years later with Ethereum and their smart contracts platform. Bitcoin is the father of all coins and holds a market share of more than 50% of the total market. If Bitcoin raises in price all other altcoins will as well because the majority of altcoins are backed by BTC or ETH. Also, a lot of altcoins have no fiat currency gateway yet and can only be bought with BTC or ETH.
- Use metrics and do research
If you are a more experienced trader or investor and know the market, to find a new ‘rising star’ you can use some metrics. This metrics or research is used to grade a certain altcoin project. Questions you have to find an answer for are: Who are the people behind the project? Which kind of users will use it when the project is ready to launch? How familiar is the technology for the people who are going to use it? How large is the community(see1)? Will the altcoin be listed on reputable exchanges? What is their online marketing strategy?
- Find ICO projects on Binance Launchpad
If you are willing to take more risk and also want to get some results on the short term the Binance Launchpad could be an option. Binance Launchpad is a project on the Binance exchange which supports new ICO’s on their platform. This platform is highly speculative but can also come with high gains(2x – 5x) in a short period of time(weeks till months).
Promising altcoin opportunities to buy right now
Of course, I also use this method to find some altcoins which will likely start a new ‘journey to the moon’. In my opinion, the rest of 2019 will all be about the native tokens cryptocurrency exchanges are using on their platforms. The first one I think is as an altcoin opportunity for buying is Binance BNB coin.
Binance Coin (BNB) has already had an incredible start in 2019, increasing from $6 to almost $20 in just a few months. This type of return hasn’t been seen for a very long time in the crypto space which is still in a bear market.
BNB currently sits within the top 10 cryptocurrencies by market cap and has a very high volume due to Binance pushing the use of their native token.
What is BNB coin exactly?
BNB has a total supply of 200 Million coins and is actually an ERC-20 Token – meaning it runs on the Ethereum Blockchain – and is compatible with MyEtherWallet and all other ERC-20 Token wallets.
BNB is Binance’s native token and performs many functions on the exchange and throughout the ecosystem.
What is it used for?
On the Binance trading platform, the BNB token can be used for trading and by doing this one has a discount of 25% on trading fees compared to BTC or USDT. This alone will shift a proportion of traders and investors to choose BNB as their currency pair instead of Bitcoin or Ethereum. Also, Binance is currently a top 3 player as trading platform globally and controls a significant amount of volume, they have a huge audience that can (and will) use BNB to trade.
Binance has very cleverly (and recently) introduced their launchpad ICO platform where users can invest directly in vetted ICOs on Binance. Binance has changed the rules to a lottery-based system where users will be randomly selected to participate in the ICO’s, but there’s a catch; they have to own BNB coin.
Who founded Binance?
Binance is founded by Changpeng Zhao and is a well-known blockchain industries expert and expert in setting up trading systems. In the past, he also founded BijieTech and was head of development at Blockchain.info.
How large is the community?
The answer is large, quite large. Currently, the BNB coin ranks at number 7 at Coinmarketcap which is very impressive for an altcoin which has been there for less than two years. Also, on their DEX platform, there is a community forum which has a large number of visitors.
Why am I interested in this coin?
My number one reason I want to own this coin is that Binance uses a burndown policy for their coin. Each quarter Binance will use 20% of their profits to buy back BNB altcoin. After buying back BNB they will burn these BNB altcoins so the total supply will be reduced. They will continue doing this until 50% of the original supply has been burned and an amount of 100 million coins will be left. This deflationary policy will automatically result in rising prices for BNB over time just like the mother of all coins, Bitcoin, did in the past. So when the bull returns in the total cryptocurrency market, BNB altcoin will profit more because of the reason mentioned above.
Another altcoin opportunity is Kucoin (KCS) and has already had an incredible start in 2019, increasing from 0.35 USDT to almost 2.45 USDT just a few months. This type of return also hasn’t been seen for a very long time in the crypto space which is still in a bear market.
KCS can be considered as a midcap altcoin which resides at place 59 at the website Coinmarketcap.
What is it used for?
A daily dividend is paid to those who hold KuCoin, with the dividend coming from the fees collected by the exchange. KCS has seen impressive growth as investors have been keen to invest in a cryptocurrency that pays them to hold it.
- Discount on trading fees
Holders of KCS coin will get discount on trades when performing trades on the platform. Also when the total trading volume rises on the platform also the holders will get rewarded in extra KCS altcoins.
Who founded Kucoin?
According to Crunchbase :
Founded by a group of blockchain enthusiasts who had proved themselves in industry giants like Ant Financial and GF Securities, Kucoin aims at providing users digital asset transaction and exchange services which are even more safe and convenient, integrating premium assets worldwide, and constructing state of the art transaction platform.
The founding team of Kucoin Blockchain Asset Exchange Platform has carried out in-depth research on blockchain technology as early as in 2011 and achieved the technical architecture of Kucoin exchange platform in 2013.
How large is the community?
Their community isn’t that large compared to some other top 10 ranked altcoin but they have a large support on Twitter(350K followers) and Reddit r/kucoin(14K).
Why am I interested in this coin?
The main reason I’m interested is the dividend option they offer by just holding the KCS altcoin. Also I believe this exchange which resides in Asia has a lot of space to grow furthermore.
Finally, I explained some interesting altcoin opportunities to keep an eye on. Which coins do you follow and are they also related to a cryptocurrency exchange platform?
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