Ever wonder what the next breakout coin will reveal itself to be? You can learn how to spot the next one. During 2016 and 2017, Bitcoin skyrocketed in value and popularity. The shift in focus went upon BTC like wildfire. Despite Bitcoin’s bull run coming to a slower pace recently, investors and people just like you are wondering what the next ‘Bitcoin’ or ‘breakout coin’ will be. Following this tutorial, you can begin an educational journey to prepare yourself for any bullish coins to come.
Research About the Coin
To start, due diligence covering the coin’s origin, history, and company will pay off in droves. Even if a coin is not going to be a breakout coin, the practice of learning about currency is an invaluable skill. So, when you are educated enough, it will be a simple, clear-cut process to identify a rising altcoin.
Take this analysis of Ripple (XRP) for example. The team behind Ripple genuinely cares about the future for XRP. Their board of directors is made up of leaders who have worked for the top Fortune 500 companies in top-tier positions. The business plan they are unfolding is proving to bring back serious returns on investments. Additionally, according to Ripple’s official site, Executive Chairman Chris Larsen established “open access to credit scores movement by making E-LOAN the first company to show consumers their FICO scores,” during his time at E-LOAN. Clearly, a passion for decentralization for the future, not for quick bucks, is at the centerfold of Ripple’s overall vision.
The above example is a small snippet of what you can discover about a coin and what it stands for. In-depth research is the beginning of filtering out which coins prove to have long-term potential. Along with studying moves the company and coin makes, keeping up to date with recent blog posts, press releases, and news is critical. If a company is having trouble keeping up with its coin’s demands, this is a red flag. However, companies who invest in consistent, free valuable content to their readers, viewers, and listeners should be on the top of your radar.
A free tool that excels in providing up to date, easy to see price information is CoinMarketCap. Here, an overall market analysis combined with individual indicators make it clear as to how the performance of individual coins among the total is. With an understanding of market economics, identifying which coins are bullish or bearish makes complete sense.
Keep in mind, cryptocurrency is volatile, so using the U.S. stock exchange as practice or for paper-trading might seem simple; but, it only appears that way. While price volatility is a concern to many in regard to cryptocurrency, do not let it waiver your decisions about your shorts or longs. Over time, you can see volatility displayed on CoinMarketCap shows a trend of growth for coins. In other words, it is a strong indicator for activity and use. People need to widely use the coin you are thinking will be the next breakout for it to skyrocket.
Engage in the Community
Forums, blog comments, YouTube videos, and other social platforms fuel the majority of the buzz about the coins you are researching. Take advantage of this open way of communication. Beware of hype and what you read online. Some ideas may not at all be valid or only exist to spread confusion and fear. Using your intuition and reputable investigation to partake in such events as comments and forum replies. Find the leaders in the field such as Juthica Chou, co-founder of LedgerX, and Naval Ravikant of MetaStable on Twitter to see if you can squeeze some inspiration from their words of wisdom.
Study Price Charts
Aside from studying and keeping up on your crypto news, making daily efforts in analyzing and becoming evermore familiar with market price charts is absolutely critical. Especially if you have never undertaken the time to learn how to read price charts from regular stock exchanges, achieving this should be one of your first responsibilities. Ultimately, it comes down if you can spot a trend or not before it occurs. The skill associated with this comes from time willingly spent with a passion to learn more and with a curiosity like none other.
Stemming from a scarcity mindset that is prevalent in the masses, volatility makes people run. A highly volatile coin is the one you want to pay attention to. Whether it is experiencing a bull or bear market, volatility is occurring when a lot of activity with the coin is occurring. Similar to good or bad news, it is still news on the subject. In the long-run, this is heavily weighing down on the side of good news for a rising altcoin. The more active a coin or group of coins are compared to the rest of the available currencies, the more exposure and breakout potential it possesses.