Treasure hunting or how to fast check coinmarketcap newcomers?

Treasure hunting or how to fast check coinmarketcap newcomers?

Coinmarketcap adds several new cryptocurrencies a week. Why would you want to learn anything about them? There can be several answers to this question. Some people want to find a new gem, a sleeping giant. We all hold the biggest part of our portfolio in currencies from top 20, but we all understand that we will not see 100x gains from them this year. So we look for a promising newcomer, who can grow fast and buy it dirt cheap. Others just want to get fast gains on the events. When a coin/token is added to coinmarketcap it becomes visible to everyone. Project gets attention and the price goes up. Also at this time it is added to exchanges (sometimes big exchanges) and it also affects the price in a positive way. So a newcomer can make 20-50% gains in a couple days. 

The most valuable resource in the world is time. You can’t spend a lot of time investigating any new project. So you a need a way to check it fast and spend time researching only the most promising projects. Here is how I do it. 

Before we go any further I want to remind you this article is not a financial advice, I’m not a financial advisor of any kind. The article was created for solely entertainment purpose. 

Coinmarketcap can give you a lot of information if you know what to check. First of all you need to check what projects are added today on coinmarketcap. Select a newcomer and check the following: 

• Volume and price chart. Coin can have several hours of history that can’t be actually used for any tech analyses, but we still can see if people are interested (high volume) and if early holders are dumping it. 
• Markets. Check if it is added to your favorite exchanges. In most cases there is no pint to create account on a new exchange to get a coin. Exchanges can also say a lot about project potential. If the first exchange is Binance or at least Kucoin, the projects deserves some attention. 
• Social. Get a link to official twitter account. Don’t try to search it manually, you can easily get to a scam page. If no official twitter, it is better to stay away from the coin. 

Then we can go to official twitter and check activity. We want to see an active account that has: thousands of followers, activity (should post often), twits are often liked and reposted, account is communicating with followers (ask questions, do promotions i.e. involves people).  

From here we go to the official site (twitter always has the link). We need to get a short description of the project to understand: 

•   What is the problem that project solves
•   How it is solved
•   Team
•   Roadmap and future plans 

Don’t try to dig too deep, just go over to get the first impression.

Then we need to go to telegram group. Here we want to see the number of members (10 – 50k is good) and an active discussions (hundreds of people asking how to dump it on exchange is on obvious red flag). 

If you don’t like the project at this stage, then stop wasting time on it. If it seems good, then the next stop is ICO sites like icobench. Just check rating here. You want to see it as high as possible. You also want to see initial price, how successful was the ICO (if hard cap was reached), bonus and bounty program.

Why studying bonuses and bounty is crucial for your success? Bounty gives free tokens. When people get them, they dump them and the price goes down. Bonus does the same effect. If people were able to buy it with 100% discount at presale you will see immediate dump even if it is listed at ICO price. Early investors will fix their profits and dump at least a part of their holding to return investments. You don’t want to buy it and see the price going down, but you want to buy it dirt cheap from dumpers.

You need to go to bitcointalk. Check if the project has at least several pages of discussion. Check if comments are positive. Search for airdrops and bounties. You need to understand how many tokens were given for free. More than a half of free tokens will be dump as soon as possible. You need to find out when bounties and bonuses are distributed. Sometimes it is distributed right away, sometimes it happens 1-2 month after the ICO. 

You need to keep in mind that any ICO has bounties and bonuses. It is not a red flag for you, but you should act wisely taking it into account. If after your investigation you want to buy it, it can be a good idea to set an order to -30% / -50%/ -100% or even buy in several orders on different price. If you would catch the coin low, you can then sell it in parts in the same manner when it gives you 30% / 50% /100% profit or hold it expecting greater gains. 

If you still think it takes too much time, you can subscribe to my blog or twitter. I’ll be checking newcomers and publish my thoughts. 

If you think that I’m missing some important steps, please share you opinion in the comments. If the article was useful to you vote for it.

Disclaimer 

I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose. 

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