Image Source Coinswatch
Early adopters who had the foresight (maybe fortune) to buy into bitcoin in its early formative days and then had the patience to hold onto the cryptocurrency since its inception are now extremely wealthy. The biggest digital currency in the world with the most robust market capitalization has performed massively well for itself in the past few years, and the result is that many investors who casually timed it right and held onto their BTC have now ended up as millionaires.
Can there ever be another bitcoin with futuristic price explosion today in the wake of thousands of digital currencies flooding the market? Investors are asking for the next big digital currency to get rich off of. For newcomers, the question has always been, how does one spot a cryptocurrency guaranteed to take off in the future?
Observe Price
Bitcoin continued the road of a few cents until 2011 when it hit $1 for the first time. Key element to keep in mind when scouting for that next big cryptocurrency is the starting price of the token. An average investor might not have an intimidating reserve of money to put into a cryptocurrency project, this is where low priced currencies offer the best prospects for your money.
Image Source Trading View
Toying with let’s say a potential investment of $5,000: looking at today's prices, that money could buy one one Ethereum (ETH), over 5 Binance (Bnb), or Ripple (XRP). There are also thousands of coins from one or more currencies priced priced in cents at the moment. The ability to put your money in low-priced coins should not be overlooked. A quick into into 2018, we saw ripple’s huge growth with an all time high (ATH) of $2.7700 which as a very impressive price gain from just a few years back in 2014 when it was trading at a price of $0.00268621, that’s an impressive 103,019.3% growth in a space of 4 years. Imagine investing $5000 in XRP back in 2014
Adoption Prospects
While XRP has declined from what it used to be back 2018, it nonetheless poses strong adoption prospects outside of the crypto space. The reason being the system of settlement that ripple's underlying technology promises to central banks and other financial institutions. Read: Ripple Cryptocurrency Woos China's Central Bank.
Ability to identify a cryptocurrency with a use case scenario like ETH, link, bnb and this gives an edge over others which therefore increases its prospects to be more likely for adoption), this could be a good investment.
The Supply Factor
Many cryptocurrencies out there have a pre determined maximum supply threshold. When this maximum is reached, through mining, production of new tokens ceases.
If interest persists with a fixed supply, the value could appreciate. Be sure to put into consideration the total supply and the current circulation of any cryptocurrency before you investing.
Like the old saying, Scarcity improves value
Trade Price and Volume
Source from Investors Underground
Current information about active cryptocurrency trades is readily available on the internet. Look out for those digital currencies with increasing price and volume, these trades are likely to be those with momentum of going forward. Apparently, there is no guarantee that this momentum will maintain a steady upward movement, nevertheless, it is a useful way of knowing which digital currencies have the most investor interest for the time being and for how long.
Disclaimer:
Cryptocurrencies are highly Volatile, and increasingly risky and speculative. This article is in no way a recommendation by writer to put your money in cryptocurrency. All individual's situation is unique, therefore, a qualified financial professional should always be consulted before making any decisions.