- The offer in altcoins is endless, and that means that many times we will not know which one to keep
- However, the truth is that aspects in which we should stop when choosing an altcoin. By paying attention to them, we can achieve a higher return on our investments
As Bitcoin exhibits less volatility, something that seems likely considering the latest facts, it is clear that those investors looking for maximum profitability in a minimum time will have to look for other alternatives in the market. Altcoins come into play there, although there are so many that it is impossible to keep up with them, and that could make you miss good opportunities. So, if you want to know how to choose the best altcoin, we show you a series of tricks that could be of enormous help when choosing between them ..
We say this because, if you are watching the news, you have surely heard about those altcoin projects that multiplied their value by 50 or 100 times. But, when you get to them, they stabilize or even lose their price .
Many users tend to follow influencers in the matter, crypto influencers by calling them in some way, launching into the altcoins that they promote on their social networks, and while this may be useful in some cases, the reality is that influencers are not made. liable for losses, and could be receiving a benefit in return, such as holdings in that currency, cash, etc..
At this point, with more than 10,000 altcoins hanging around, and not being able to trust those who claim to know about it, how can we go about choosing the best altcoin in each situation?
Questions to ask yourself when choosing an altcoin
What is the objective of the project?
Although it seems an obvious question, first of all you have to ask yourself, or better yet try to find out, what is the objective of the project . Sometimes people invest in a project just because they have heard good about it.
Therefore, we advise you to look up the technical documents around all altcoin, analyze them critically, or ask someone who knows more than you, what they think about their official information..
This is essential when we talk about altcoins, because each ecosystem of the many that coexist will have elements in common, but also many other aspects in which they will differ.
Then the difficulty is that you never know in advance what changes they will introduce, so you have to focus on what you see, what they promise, and the demands of the public .
Does this project have a strong community?
As we said, the success of an altcoin depends both on its marketing and its usability .
An altcoin that offers solutions but does not have good marketing will never grow or will grow too slowly, while a little new altcoin but with good marketing will explode suddenly, but will fall immediately, so you can not trust it either, and it is better discard it.
For every project you hear about, you have to seek opinions on social media and forums.
Then, the level of risk that you want to take in your investments is left up to you, and that means that for you either the most solid cryptocurrencies, or those of consecutive explosion and fall, will make sense . It's up to you.
Is it something fashionable? (Or it is likely to soon become fashionable)
There are times when certain types of projects become fashionable, they become absolute trends. During the last few months, we have seen the furor for decentralized finance or DeFi, then NFTs, etc.
This means that you have to look for those projects that fit the class of altcoins that are successful at a certain time . It is the best way to ensure that there can be a close and sustained explosion.
Conclusions
In short, it is impossible to predict with 100% certainty whether or not a particular project will be successful and therefore investing in the early stages of a small cap altcoin is one of the riskiest ways to invest in cryptocurrencies. We do not recommend allocating more than 10% or 20% of your money to altcoins .
Still, with some research you could take advantage of some of the best altcoins today.