How to Find an Altcoin
DYOR — This is NOT Financial Advice. High Risk.
General
- Learn to identify scams. This is the most important thing. You can do that by reading books about con-men, frauds, scams, etc. Treasury of Deception is a great read and I really recommend it. Understand how scams in the coin-world operate. Learn from past scams.
Identify Coins
- Find a coin with a rank 100+ or 200+. Understand how market cap works. Please do not compare it with market cap in real estate or anywhere else. Do not invest into a coin which are in the top 10.
- Look at the chart. If it looks like a pump and dump, it probably is. Is it dead? When did it pump? Did it already? Well, let’s see. This one is an example of a really bad chart (below). Do not invest.
Other indicators
- Look at all time high and all time low:
Where is the difference here?
As you can see they are both not far away from their highest point.
Second coin is too far away from its lowest point and not far away from its highest. What is the probability that it might go to the highest point again? Or will it go to the lower point? It’s quite high already and it will just go down further…
What does that mean? It means it already pumped. Don’t invest in the second coin. Does not mean you should invest in the first one, but out of these two, the first coin looks better.
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Social Media
- Look at their Twitter Following. Everything around 100k is a good indicator for a good following.
- Look at what they post on Twitter. Does it look like they are just interested in pumping it? Or do they provide new projects? Are these projects a scam too? Do people interact or is everything just “to the moon”?
Food for thought:
- It is more important to see the coins you should not invest in.
- Search for red flags and do not invest in the coin if you find them.
- It’s not about finding the best coin.
- It’s about finding one that has least/no red flags.
- There is no “best” coin.
- Bitcoin will always go up and has to go up to take other coins with it. However, it will probably not go 10x or 50x or more in one year. This is only possible with altcoins.
This is not financial advice. I am sharing my findings. Do not trust people who convince you of a good coin. Do not invest in coins other people tell you to. Do your own research. I hope this article gives a few hints on what to look out for.
And most of all: Don’t be a shill!
