Every once in a while you as an investor, want to pick something that is extremely new, and has a chance for a very big increase in price. How should one proceed, to have the highest chance of profit?
Before I start, I'd like to clear something up: these are high risk high reward investments. Be aware of the possibility of losing 100% of the money invested. Don't play around with money you can not afford to lose!
Now that that is out of the way! The way you should look at alt coins is like a start-up. In case you do not know, most start ups get sold the instant there is a good offer for them. The reason behind this is that on top of a series of perfect business decisions, they also needs luck to actually succeed. The smallest mistakes could cost them everything. Now since crypto as a whole is relatively young the circumstances aren't THAT extreme, but when choosing what to invest your hard earned money in it is better to be safe than sorry. To invest in a very new alt coin, you have to be truly convinced that it is a good project.
While researching for a new coin, your criteria should be the following: what problem does it solve, what's the demand for it and who is behind the project. There likely is going to be a certain coin which solves one exact problem. For every problem. When I say this, I think of projects like BAT, which clearly position themselves in a field and a working towards optimizing it. If there is enough demand for a solution towards a potential solution to a problem, that solution has the perfect market condition to succeed.
But as stated earlier you also need to look at the team behind the project, so that you do not fall for any scams. Do proper and in depth research! You likely won't be able to understand the technology behind a coin, but you can at least see if the team is a band of monkeys, or educated and motivated people. To learn how to do proper research, make sure to check out my other blog!
