One of the most important parts of trading crypto is having a diversified portfolio. However, many newer traders decide to invest solely in well-known market leaders such as Bitcoin and Ethereum while ignoring lesser-known coins. Although you can still make a profit from doing this, it is not an optimal trading strategy.
By diversifying your portfolio, you can ensure stability and reduce your chances of losing all your capital at once. If one particular coin you invest in happens to plummet in price, at least you’ll have other investments to keep your portfolio stable. Additionally, various altcoins usually have real-world uses that traders can benefit from, making them worthwhile investments.
If you’re interested in investing in a variety of cryptocurrencies to diversify your portfolio, then you just need to find potential candidates. Of course, this is easier said than done! Since there are so many different cryptocurrencies to choose from, traders can struggle to decide on a small selection to trade. That’s why we’ve outlined the key ways to find new cryptocurrencies to invest in! So, keep reading to discover how you can expand your trading portfolio while staying safe from scams and other issues!
Top Ways to Find New Crypto to Invest In
Want to expand and diversify your crypto portfolio? Here are the best ways to safely find new cryptocurrencies to invest in!
Take a Look at Crypto Marketplaces
Crypto marketplaces (data aggregators) such as CoinMarketCap and CoinGecko are often the first stop for traders who are on the hunt for new coins to invest in. Here, you can find important information about any coin, including its price, market, cap, volume, circulating supply, and current ranking. Using this information, you can determine whether certain coins have potential and get an idea of what other investors think about them.
We recommend that whenever you are interested in finding new coins to invest in, you head to a crypto marketplace first, as this is where you’ll find raw data rather than other information that could be biassed or even false. Many crypto marketplaces also have an entire category dedicated to new coins that have been listed within a certain amount of time (such as 30 days).
Check Out Social Media
Social media is another great option for traders searching for new crypto coins to invest in. Cryptocurrency development teams often turn to social media platforms such as Twitter, Discord, and Reddit to inform their community of the latest project updates. If you search for variations of key terms like “new cryptocurrency” and “cryptocurrency release”, then you’ll have a wide selection of coins to choose from.
Social media can also be used to discover more about the crypto community’s opinion regarding specific coins. If you see lots of positive tweets or posts about certain coins, then you’ll have an idea of how they could perform and how their prices will change over the coming months and even years. By keeping up-to-date through social media, you’ll also see which coins are currently trending, giving you a chance to invest before prices rise too much.
Sign Up for a Crypto Platform
A crypto platform is a marketing tool that links full-featured brokers with traders. These brokers will then provide a range of innovative tools to help support their traders as they build up their portfolios and invest in cryptocurrency. If you’re new to trading, you will find this particularly useful as it can help you build confidence when trading and make more informed decisions when choosing new cryptocurrencies to invest in.
When creating an account with a crypto platform, you just need to provide your name, contact details, and country of residence so the platform’s algorithm can match you with a suitable broker. You’ll then just need to deposit a small amount of funds to finish your account creation and start trading with the guidance of your assigned broker.
If you’re unsure which crypto platform to use, we recommend Bitcoin Profit for beginners. This platform is user-friendly and packed with features to make the sign-up process swift and trouble-free. You’ll quickly be connected with one of the platform’s brokers with whom you can discuss your trading goals. After you’re happy with your assigned broker, you can use their support and resources to find new crypto to trade. The entire process couldn’t be any easier!
How to Protect Yourself When Finding New Cryptocurrencies
Wait! Before you dive in and start investing in new cryptocurrencies, there are a few things you need to be aware of. Trading is extremely risky, and if you don’t take the proper precautions, you are increasing your chances of losing your money. Here are a few key ways to protect yourself when finding new crypto to invest in!
Don’t Fall For FOMO
FOMO (short for fear of missing out) is a common occurrence in the trading industry. It refers to when traders notice that others are making a profit from a particular investment and fear they are missing out from profiting too. At some point in their trading career, every trader will experience FOMO. What is important, however, is to learn how to manage FOMO when this feeling starts to take over. If you notice feelings of anxiety, impatience, jealousy, fear, and greed, then you’re likely being swept away by FOMO. If you let this feeling get the best of you, then you’ll start making irrational and emotion-driven investments that can lead you to losses.
To manage FOMO, you need to first identify what is causing it. Typical traders who regularly check social media or read trading-related news articles are more likely to experience FOMO. Additionally, if you have a losing streak, you may enter a vicious cycle where you continue to make FOMO-driven decisions that result in poor investments. To overcome FOMO, you need to try and put your emotions aside so that you can make informed trading decisions.
All traders are in the same position, and some happen to get lucky, but that doesn’t mean you should copy their investments. Additionally, you should never make rash trading decisions, no matter how ‘unmissable’ an opportunity may seem. Finally, you should create a trading strategy and stick to it so that you don’t get carried away by negative feelings that trigger FOMO.
Be Cautious When Looking at Social Media
Although, as we’ve already stated, social media can be a helpful tool for investors to find new coins to invest in, it can also be a hindrance. Social media platforms are packed with misinformation and even scammers, so it’s crucial to be cautious when using them to find potential investment opportunities. Some accounts are even sponsored to make positive posts about certain coins and promote them, even if they don’t know anything about the crypto market or the coins they are promoting. That’s why it’s vital to always check which accounts have made a post you’ve seen to ensure they are legitimate.
The main rule, however, is to take your time when looking at social media posts and always remember to do your own research too before you risk your money investing in cryptocurrencies. And remember to take everything you read online with a grain of salt, as you can never tell the true intentions of a social media account.
Avoid Pump and Dump Schemes
A pump and dump scheme is a form of scam that is prevalent in the crypto industry. Through this scam, fraudsters will try to build up hype around a particular coin to convince traders to invest in it. Once they’ve tricked enough traders and the coin’s price has significantly inflated, the scammers will sell their assets and disappear, moving on to their next scam. This leaves all traders who have invested in the coin with losses, as the price will plummet once scammers sell their shares.
Although pump and dump scams are very common, they can easily be avoided as long as you know what to look out for. For example, if you notice that a cryptocurrency has had a sudden price spike with no real explanation, then there’s a good chance that it’s part of a pump and dump scheme. Additionally, you should be extremely sceptical if certain cryptos are excessively hyped through social media platforms. Finally, if you’re really not sure, just remember – If something seems like it’s too good to be true, then it probably is.
Overall, it can be difficult for traders to find the perfect cryptocurrencies to invest in. We cannot overstate the importance of diversifying your portfolio with high, medium, and low-risk investments. Therefore, learning how to find new and promising coins to invest in is crucial. If you don’t know where to start, then you should head to a crypto marketplace to check out new and trending coins. After this, you can check out social media platforms to see what coins investors are talking about. We highly suggest signing up for a crypto platform to connect with a full-featured broker if you need additional guidance when choosing new coins to trade.
However, when choosing a coin to invest in, there are also some precautions you need to take. Firstly, you should be aware of FOMO and learn how to manage it so that you don’t make any irrational and costly trading decisions. Additionally, you should have your guard up when looking through social media platforms, as they can be ripe with paid promotional content that spreads misinformation. Finally, look out for the signs of pump and dump schemes so that you don’t end up losing your funds to scammers. If you follow these key rules, then you can protect yourself when looking for new cryptocurrencies to invest in!