Unfortunately, it is costly for beginners to start with Bitcoin, which leads to one fundamental question, how to find altcoins before they spike?
Unsurprisingly, people from all over the world want to know whether it is possible to recognize a good alternative coin and invest in it early to make a huge profit afterward.
Cryptocurrencies gained popularity in the United States, Asia, Europe, and other parts of the world. So, it isn’t surprising that people are willing to invest a lot of money in cryptocurrencies. It isn’t hard to understand them. Do you want to know how to find altcoins before they spike? Let’s find out! Hint: it isn’t very difficult.
Firstly, if you are someone who knows about cryptocurrency and is interested in it, then you have undoubtedly heard the term “altcoin” before. An altcoin is a ubiquitous term in the crypto space used to describe coins other than Bitcoin.
Notably, there are several advantages to buying an altcoin before it goes through a price spike; if you want to gather more information about altcoins, you should continue reading the information below.
Is it possible to find altcoins before they spike?
Unsurprisingly, you might be wondering whether you can find an altcoin before it spikes. Don’t worry; the answer is yes! However, there are several risk factors involved when it comes to locating altcoins before altcoins spike.
Bitcoin’s popularity motivated people to create new cryptocurrencies. However, most of these cryptocurrencies will be worthless and lose you money. So, the key is finding a project that is worth investing in.
Really important question: “What causes altcoins to spike?”
There are numerous reasons why an altcoin might spike in price. Each time the price of an altcoin spikes, it doesn’t do so randomly. Notably, these spikes are driven by at least one of the reasons below.
Understanding these reasons, as well as the impact that the reasons mentioned below will have on the price of the altcoin, can help you or your friends when it comes to making the decision whether you should buy or sell your holdings before or during the price spike. In many cases, the spikes in an altcoin’s price aren’t permanent and might only last for several days before the price comes back down.
Publicity, demand, and the addition of new features
A key reason why altcoins experience price spikes is due to publicity. We all know that social media is a very powerful tool which is why cryptocurrency development teams and cryptocurrency fanatics use social media in order to promote their altcoins.
Many people still remember the case of Dogecoin. Elon Musk’s tweet helped to boost its price.
It isn’t surprising that a person with millions of followers posts something on social media supporting an altcoin; it can; however, it may not always result in a spike in price.
Interestingly, another reason why altcoins can sometimes experience spikes is due to an increase in demand.
So, when there is a spike in demand for an altcoin like, right after the world’s wealthiest person tweeted about Dogecoin, the price of that coin will naturally shoot up in price. Don’t forget that whenever that demand decreases once again, the price will also decrease.
Last but not least, the addition of new features to an altcoin can also be a major reason for a spike in price.
For example, this is why Ethereum is the second-highest cryptocurrency coin. When it was updated to make the processing time of the blockchain faster, the price of Ethereum rose.
This reason is perhaps one of the easiest reasons, if not the easiest, to predict before it happens. As a reminder, you can’t really predict when a famous person will make a post regarding an altcoin; however, what you can predict is when new features will be added by paying attention to forums as well as news that says when new features will be added.
Several useful tips
First and foremost, you need to monitor the crypto world. For example, it makes sense to read and watch the news about the crypto world.
It is no secret that people read the Wall Street Journal every morning. Just like stock traders read the newspaper in order to gather more information about the financial world, you have to stay up to date on what is going on in the crypto world via cryptocurrency news sites.
Hence, you will be able to know all the information you need in order to decide on whether you must buy an altcoin before a new feature is added that might cause the price of the above-mentioned altcoin to spike. What’s interesting, it can also be a great help in deciding if you should get rid of some of your altcoin holdings if there is a lousy announcement regarding the project.
Don’t forget to monitor cryptocurrency exchanges. Even though it won’t be as helpful as staying up to date with news as well as the timeline of the release of new features.
The vast majority of the cryptocurrency exchanges allow you to view the volume of that coin that has been traded on that day. Notably, this can help you determine if there is an unusual increase in demand that might lead to a spike in price. Some cryptocurrency exchanges allow you to set alerts when a coin passes a certain price.
Without a doubt, this is way more complicated compared to just reading the news; however, it can pay off if you are ready to put in the time to do it.
Useful tips part two
Please do your research: This can also be very time-consuming; nevertheless, with that being said, it certainly has a ton of upside. As a reminder, there are new cryptocurrencies being released all the time.
Each time a new project is released, its price will be meager. For example, if you can find a project from its very beginning, you will have a much bigger opportunity to make a profit out of it.
In spite of this being a good strategy for finding altcoins before they spike, it is also quite risky as not every new cryptocurrency released will be as successful as the world’s most famous cryptocurrencies. Interestingly in order to avoid investing in projects that will lose you money, you will have to spend a lot of money in order to make sure the project you decide to invest in is legit.
It is also a good idea to talk with other crypto enthusiasts. Hopefully, there is no lack of places that you can visit online in order to discuss cryptocurrency projects with other crypto enthusiasts. For instance, this can be a great way of finding an altcoin before there is a spike in price.
Although it is a great way of being exposed to interesting projects, keep in mind that just because someone told you to invest in an altcoin doesn’t mean that you should.
Last but not least, don’t forget about altcoin scams. Without a doubt, altcoins are a great way to make money, especially if you can buy them before their price spikes. They often have tons of potential to get you massive returns on your investments. Nevertheless, there is no lack of scams online when it comes to altcoins.
Unfortunately, many people have invested in an altcoin that turned out to be a scam, and they lost their money; just look at the Squid Games Token, which was released in 2021.
To sum up, it is good to know how to find altcoins before they spike and earn money with crypto. However, it is more important not to lose all your investments in the first place. Without a doubt, a lot depends on pure chance.
Here is what you have to do in order to minimize risk factors.
First of all, do your research. It isn’t easy, but you should begin by learning a lot about the crypto world. For example, there are numerous alt token experts online you can listen to for advice; however, don’t follow them blindly.
Furthermore, don’t wait for the perfect moment. When looking at the history of Bitcoin, it is easy to see how Bitcoin went up and down. However, in practice, you won’t be able to predict with full certainty when it is the prime time to buy or sell coins.
Never leave your crypto assets on cryptocurrency exchanges. If anything happens to the cryptocurrency exchange or hackers steal your coins, you will never be able to blame anyone. It is desirable to keep all your cryptocurrency in secure wallets. Furthermore, choose the safest crypto wallets for your altcoins. Cold wallets are advised, as cold wallets aren’t connected to the Internet, and nobody can hack into them.
Last but not least, investing in a single altcoin will risk losing everything if it crashes. So, in order to remain on the safe side, try to invest in different cryptocurrencies in small increments. Then, if one of the cryptocurrencies proves unsuccessful, you will have your other investment.
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