{"id":8534,"date":"2018-05-03T10:52:27","date_gmt":"2018-05-03T17:52:27","guid":{"rendered":"https:\/\/coincentral.com\/?p=8534"},"modified":"2021-09-30T13:38:26","modified_gmt":"2021-09-30T17:38:26","slug":"three-strategies-for-choosing-what-cryptocurrency-to-invest-in-next","status":"publish","type":"post","link":"https:\/\/coincentral.com\/three-strategies-for-choosing-what-cryptocurrency-to-invest-in-next\/","title":{"rendered":"Three Strategies for Choosing What Cryptocurrency to Invest in Next"},"content":{"rendered":"

You’ve probably thought it at one point or another: \u201cI missed the Bitcoin payday. How do I decide what cryptocurrency to invest in now that I know about the market?\u201d<\/span><\/p>\n

The bad news: <\/b>It\u2019s unlikely that any other cryptocurrency will see the same astronomical growth that Bitcoin<\/a> experienced over the last few years, and impossible to predict it.\u00a0<\/span><\/p>\n

The good news: <\/b>There\u2019s still plenty of opportunities to invest in up-and-coming cryptocurrencies that could potentially bring you 10-100x returns. This comes with a heavy note of caution, because as you may know, cryptocurrencies are incredibly volatile. This is not investment advice, and you should gain\/lose money on your own research and intuition.<\/span><\/p>\n

In this article, we\u2019ll go over some basic strategies you can follow when searching for what cryptocurrency to invest in next. We\u2019re focusing on high risk, high reward options here. If you\u2019re looking for general investment tips, you should check out our article on how to build a proper cryptocurrency portfolio<\/a>\u00a0instead.<\/span><\/p>\n

Scour Initial Coin Offerings (ICOs)<\/span><\/h2>\n

Initial Coin Offerings (ICOs) have quickly become the standard for blockchain startups to raise funding for their project. In an ICO, the team hosts a crowdsale in which you purchase tokens that you can use on their platform. You can also trade these tokens in the secondary market (exchanges) after the ICO. <\/span><\/p>\n

For example, Golem<\/a> held an ICO to distribute the first GNT tokens. The purpose of these tokens is to purchase computing power in the Golem network, but traders also buy and sell them on exchanges.<\/span><\/p>\n

Participating in ICOs can be a lucrative trading strategy. If you invested in the NEO<\/a> crowdsale (at the time the project was called AntShares), your return on investment (ROI) would be ~160,000%<\/strong> currently. Populous<\/a>, about 5,000%<\/strong>. OmiseGo<\/a>, around 4,000%<\/strong>. You get the picture.<\/span><\/p>\n

\"ICO<\/a>
Source: ICOBench<\/figcaption><\/figure>\n

ICO gains do come with the highest amount of risk, though. The majority of ICOs will fail, and already almost half<\/a> have done so already.<\/span><\/p>\n

ICO Research<\/h3>\n

It\u2019s important that you do your due diligence when picking what cryptocurrency to invest in pre-ICO. There are a ton of things to look at when evaluating a cryptocurrency, but the most important attributes are:<\/span><\/p>\n