The following is a guest post from the team at Cryptosis.io – An up and coming website that focuses on ICO research, altcoin investing strategy, and helping keep you addicted to cryptos.
They suggested an article about finding under the radar altcoins, and we were happy to have them publish it here.
Take it away guys!
At Cryptosis.io, we’ve been sharing our investing story for several months now, and what a ride it’s been. As of this post, we’ve managed to grow our crypto portfolio by over 11x (that’s 1,000%!).
Even though we own a small amount of BTC and a bit more ETH, most of our gains have come from altcoins. As more and more people are asking us how to buy altcoins, we decided to start spreading the word about some of our strategies.
It’s Not All About ICO’s
When we first started investing, we were crazy about ICO’s, and while we do still invest in ICO’s now, we are developing strategies that can produce gains a lot quicker.
ICO’s can sometimes take a while to return any money, and even if they do, it’s harder to predict which way they’re going to go after hitting an exchange.
One thing we’ve noticed instead, is that there are a lot of low-cap altcoins that are already a few months out of their ICO, but haven’t yet gone through a major price rise, or at least haven’t gone through one recently.
These under-the-radar projects are usually a lot more developed than an ICO coin and can sometimes 10x in price once they hit part of their development roadmap.
The key is finding these projects, analysing them to make sure they’re worthwhile, and then waiting for them to show signs of movement.
If you do this well, you can position yourself nicely for some quick gains, without having to deploy a lot of capital in advance.
The rest of this article will cover some of our top tips for finding and analyzing these projects.
Step One – Understand What You’re Looking For
We’re still gathering data on exactly what kind of projects work well, but here are some quick things to look for:
- Projects which are relatively under the radar. They’re not being talked about all over reddit and FB
- Projects which have not recently “mooned” in price.
- Projects with low marketcap. Something like Ripple might be cheap, but it’s not going to 10x anytime soon.
- Speaking of cheap, a lot of projects under $1 in price have potential to moon, as long as the above point is also true.
- Projects with a solid team.
- Projects with some upcoming roadmap milestones.
So far, having strong competitors or a unique idea hasn’t proven to be a hugely important factor. With ICO’s, it may be more important, but not so much here.
Step Two – Analyze The Projects
Start off by finding a handful of coins that meet the above criteria, and then one by one analyse them. No matter if a project looks like it is about to take off, or already has, you MUST research it before you jump in, otherwise you will get burned by a pump and dump at some point.
If you miss the move up, wait for another buying opportunity, or just move on to another coin.
There are new opportunities every day.
To analyze them, look at the team, the roadmap, the community, what people are saying, what the history is like, or subscribe to our newsletter and let us do it for you.
Step Three – Wait For The Right Time
Once you’ve found a potential winner, you don’t want to just jump in and buy it straight away (unless it looks like it’s about to pop and you’re confident in the project).
There are many opportunities to invest, and if you deploy your funds to a coin that isn’t going to moon for a few weeks or months, you’ll miss out on projects that rise in price sooner. There is an opportunity, and an opportunity cost involved in every project you invest in.
So what you want to do instead, is wait for the right moment to deploy capital.
- Look at Coinmarketcal.com to see if the projects have any upcoming events that could influence the price
- Look at the technical charts for the project. Is it at an all-time high? Has it bottomed out? You’ll need to decide when to buy based on this. It’s not ideal to buy at an all-time high, unless you’re prepared to hold the coin long time through corrections.
- Are people chatting about the project on Twitter?
- Has there been any github activity lately? This usually preludes any announcement
- What are the team saying on official channels?
By combining the above strategies and looking at what kind of things had inspired growth in similar projects, you’ll be able to get a lot of ideas for when a coin is about to move.
Next, you just wait for the volume to start picking up, and when it does, chances are you’ll be able to jump on early and ride the train as it leaves the station.
What happens next and when you decide to cash your profits is up to you.
In Conclusion – Do Your Research And Wait
You do have to be patient to follow this strategy, and 50% of the projects you pick may end up not mooning. Some of them might even go down in price.
But if only 1 in 10 projects goes 10x or more in a short period of time, you should come out ahead, and by a large margin.
Remember to follow us over at Cryptosis.io to keep up to date with this strategy.