As we are getting into the final quarter of 2021, the cryptocurrencies and their markets seem to continue recovering from their May drop. What many consider to be a “mini bear market” seems to be just a blip in the map of this bullish cycle.
Yet, there are some cryptocurrencies that have seen more growth than others, giving investors a better return on their capital. While some convert ETH to USD in fear of another leg down, others take the long time perspective and patiently wait for the bull run.
In this article we explore some of the coins that might see more explosive growth, and the steps you can take to identify those projects.
Anyone looking for direction in forums, Facebook groups, or Twitter, will soon realize that getting good information is very very difficult. Unless you happen to fall into a very private Discord group where full-time investors share their analysis of projects, you will need to learn how to do your own research. This will not only help you discover gems before they “pop” but also get a better understanding of the industry as a whole. Of course, there are several steps you need to follow in order to do this efficiently.
By reading the whitepaper of projects that interest you, you will be exposed to their plan or roadmap. You don’t need a high degree of technical understanding to research their plan further. Build a conviction of their plan. Especially if it is already some sort of working product, you should definitely look into it.
Speaking of working products, it is important to understand if the solution is actually solving a pressing problem in the industry. No one needs another Bitcoin when the former is clearly the winning horse. However, there are many problems that need a working solution. So ask yourself - will people use this product? And if so, where could this lead to?
A very important yet often overlooked point to consider is the conviction of the team behind a product. Apart from understanding the background of the teams, it is important to also spend sufficient time watching them discuss their product in podcasts, presentations, etc. How do they feel about the product they are building? Another thing you can do, after the token hits the market, is to track their wallets - if they are not selling, and only buying more, you have found a great project.
When exploring a project you will also need to understand who the early investors are. These are usually seed-stage crypto funds, some of which have a great reputation in the space. The easiest way to discover the early investors of a project is to visit the project’s homepage and look for early backers and partners sections.
Last but not least is the importance of community. Without a userbase, there is no demand, and without demand, the price will never grow. Try to filter projects also by the amount of (real) followers they have on Twitter, Discord, Medium, and other relevant channels. Crypto prices during the bear market often reflect the participation and engagement of the projects’ community.
Following this research approach, we have identified several projects that may experience large growth over the next few months. Of course, it is important to remember that this is simply our opinion, and it does not represent financial advice. We recommend you explore each of the following projects by using the information we shared above. So, without further ado, here are the projects:
There are many more cryptocurrencies that are worth investing in if enough research is performed. However, in order to build up a conviction for their future, you will need to be patient and learn how to have a long-time preference. Most projects take time to build and only a few will eventually outshine the rest. In turn, early investors will receive the highest rewards.
So go ahead and research more cryptocurrencies, whether you start from CoinMarketCap, Crypto Twitter, or Reddit, and make sure to maintain an objective approach at all times, without letting yourself get lured by the marketing.