Developers of recently released digital coins continue to raise funds to develop their cryptocurrencies. How this happens and why the overwhelming majority of such projects will not bring profit to investors.
The popularization of cryptocurrency has led to the emergence of new digital coins almost every day. For example, more than 10 thousand different tokens are already presented on the Coinmarketcap service.
Investors invest in new cryptocurrencies early on in order to get the best returns. experts named interesting tokens for investment and explained how to independently choose promising projects?.
Where to find tokens
Now you can find lists of upcoming listings on decentralized trading platforms (IDOs), for example, using the calendar on Coinmarketcap (ICO Calendar section), said Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, there is a big problem with such tokens – most of these projects are doomed to fail.
“Newcomers to the crypto market are certainly delighted with the potential return on early investment in young projects. ROI sometimes reaches thousands of percent, but my opinion is not an occupation for a beginner, ”the expert explained.
Nikita Soshnikov called investments at an early stage of the project development a gamble, since success largely depends on luck. In this regard, he advised to allocate part of the investment portfolio, which is not a pity to lose, for the purchase of recently released tokens, and use the rest of the funds for the purchase of already held coins.
Selection criteria
The key criteria for choosing tokens at an early stage should be the prospects and scalability of platforms, says Artem Deev, head of the analytical department at AMarkets.
In his opinion, in order to understand whether there will be a return on investment, it is necessary to assess how new coins can become of interest to users and what this product can lead to in the future.
“Rather, it is worth selecting based on the principle of revolutionist and perspectives. And for this, it is necessary to collect expert opinions and facts about individual assets almost on a daily basis, ”the analyst added.
To reduce the time spent on studying the project, Nikita Soshnikov advises to immediately look at the team that develops the project and its reputation in the industry.
It will be a plus if they already have successful projects behind them, says the director of the cryptocurrency exchange service Alfacash. He also recommended targeting Western developers from the UK, Canada and the US.
Guarantees of very high, and sometimes even inadequately overstated, profitability in a short period of time is the main sign of fraudsters, warned Nikita Soshnikov.
Promising tokens right now
Artem Deev high lighted several interesting projects that are actively developing and may bring good returns to investors in the future.
According to him, it is worth paying attention to the ThetaDrop trading platform, where non fungible tokens (NFT) are placed. It is part of the Theta Network, which makes it possible to integrate with various products on the market; the launch of this platform can become a serious stimulus for the growth of tokens, the analyst said.
He also advised taking a closer look at the Ethereum scaling solution – Polygon (MATIC). According to Deev, this token has shown high stability against the background of a general correction of recent times, so this can become a guarantee of its future growth.
Another project with a promising future is the Formation smart farming cross chain protocol, which allows users to stake for rewards in the native Formation currency, providing cryptocurrency holders with maximum profit, the analyst concluded.
