How To Find High Potential Coins

By Bfab | Good vibes | 17 Feb 2022

You have scrolled coinmarketcap down to rank 300 and are still not sure what coin to buy to leverage your investment. The reason is that you are only looking at the value and the percentage of variation over 1 day. You are not really looking at the potential of the coins.

How to evaluate the potential of a coin?

At first, you need to forget for a while the YouTube influencers who mostly recommend the coins they invested in. Investing properly requires a bit of research, which may include:

Reading the whitepaper.
Check the tokenomics.
Review the team.

This list is not exhaustive. You may also have a look at what the other people say about the coin and project on Discord, Reddit and Twitter, for instance. The key is to check that the coin or token in which you are going to invest has some utility, and is not only a Ponzi scheme or a potential exit scam.

Once you have qualified the project and team that is behind the coin, you need to look at the potential. It requires first of all to classify the coin in a category. For instance, is it a smart contract blockchain coin competing with Ethereum, a centralized exchange coin, or a metaverse project?

Once you have defined the category, you need to look at the competitors of this project in the same category and compare the market caps in order to define the potential of your coin. To do that easily, you can use a tool called marketcapof.com (see below for the link).

Let's take a few examples:

1) I want to invest into metaverse, so I compare SAND and MANA:

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2) I want to invest into a centralized exchange coin, so I compare CRO and BNB:

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3) I want to invest into a competitor of Ethereum, so I compare EGLD and SOL:

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As you can see above, by using this tool, you can evaluate the potential of a coin in a defined category, provided that it has fundamentally the same potential as the coin to which you compare it. For instance, it could be argued for EGLD that there are not as many developpers working on it as on SOL.

Therefore, before investing in any coin, it is crucial to look at several parameters: utility, category, market cap vs. other coins of the same category, and fundamentals such as blockchain or project performance, willingness of developpers to work on this blockchain or project, people backing the project...

Below a few referral links to earn more cryptos...