How to Find New Cryptocurrencies for Investment in 2023
This has inspired more crypto-curious investors to invest in new coins, hoping to get lucky to invest in one that will become the next big thing. Some investors are also searching for new, lesser-known altcoins to invest in for diversification purposes.
With tens of new coins launching daily, how do you know which ones to invest in?
In this article, we’ll discuss how to find new coins and altcoins in 2023.
Ways to Find New Cryptocurrencies to Invest In
Here are four ways to safely find new cryptocurrencies to invest in.
- Crypto Blogs and Social Media ChannelsDevelopers use crypto blogs and social media pages of exchanges to create awareness about their new coins. Social media channels such as Twitter, Reddit, Discord, and Telegram are the best places to disseminate information about upcoming and ongoing projects. You can also get more info about trending cryptocurrencies to invest in through these channels.
- Crypto Exchanges: One of the best places to look for new cryptos is the platform you wish to invest on. Exchanges feature sections with lists of new cryptocurrencies available for investment. For better access, you will need to set up an account on exchanges such as CoinBase, Binance, and Crypto.com.
- Crypto Marketplaces (Data Aggregators): Crypto data aggregators such as Kraken, Coinlib, CoinGecko, CoinMarketCap, and CoinStats combine crypto-related data from the largest exchanges into one real-time price field. Here, you can find raw data about any coin, including its market cap, price, circulating supply, trading volume, and current ranking. These aggregators also typically have an entire category dedicated to new cryptocurrencies and more info you can use to perform your own analysis.
- Initial Coin Offerings (ICOs): An ICO is like an IPO but for crypto-related projects and services. If you’re wondering how to find new coins before release, Initial Coin Offerings allow you to invest in a crypto project early. Platforms like CoinMarketCap ICO Calendar and Icodrops can help you stay up-to-date with upcoming ICOs. These platforms provide helpful info like the fundraising goal, token price, team profile, whitepaper, soft cap, etc.
Ways to Invest in Cryptocurrency
While investing in cryptocurrency directly may be the most popular way to do so, there are other ways to get into the crypto game:
- Crypto exchange or broker stocks
- Crypto futures
- Crypto funds/trusts
- Blockchain ETFs
Each of the above methods varies in its exposure to cryptocurrency and riskiness, so it’s imperative you understand exactly what you’re buying and whether it meets your needs.
Platforms to Use When Buying New Cryptocurrencies
If you’re looking to invest in a new cryptocurrency, you have a handful of ways to do so:
- Traditional brokers such as Interactive Brokers and TradeStation
- Crypto exchanges such as CoinBase and Binance
- Financial apps such as Robinhood and Webull
Approach New Cryptocurrencies with Caution
All investment comes with risk, and investing in cryptocurrencies is even riskier, which is why you should tread carefully before parting with your hard-earned cash. Investing in new cryptos can be a regretful decision if you’re not careful.
Before you dive in and start investing in new coins, here are a few key ways to protect yourself:
- Don’t Believe Everything You Read on Social Media
As mentioned, if you’re wondering how to find new altcoins, social media can help, but if you’re not careful, you will lose your money.
Some coins you see on social media are pushed by sponsored ads. Sometimes, the influencer or marketer promoting them has limited knowledge about them. Don’t pay much attention to exaggerated claims; the dishonest actors are just in it for the money.
Social media is also full of scammers who want to take advantage of naïve, first-time investors. Take everything you read online with a pinch of salt. Look closely at every detail and take your sweet time to filter out accounts and messages.
The best way to avoid getting scammed on social media is to stick to reputable and verified accounts.
- Do Not Follow the Crowds
Many investors make the mistake of following what everyone is doing due to FOMO.
FOMO (fear of missing out) refers to when investors notice that others are profiting from a certain investment and fear they’re missing out from making a profit too.
This herd mentality is characterized by a willingness to follow others blindly and a lack of autonomous decision-making.
As much as following trends could be a good thing to do in a few cases, it normally has consequences in the investing world, and more often than not, they’re not good.
Do not invest in a new coin just because your friends are doing so. Be very intentional when investing in a new cryptocurrency and do your own research, which brings us to the third precaution.
- Do Due Diligence
Retail investors can be subject to crypto scams.
When looking for new cryptos to invest in, you will be faced with the problem of determining if a project is legitimate or not.
You will come across “investment managers” promising consistent profits in unheard-of crypto tokens.
There’s no such thing as free lunch, which is why you should be wary of “rug pulls” or pump-and-dump schemes. If something seems too good to be true, it probably is.
Before you pump your money into any new crypto project, check vital info like who’s behind the project, the date the domain was created, contact details, and the country it’s registered in.
Also, remember to check the project community on social media to see the number of people involved, what they are talking about, and how active they are.
The project website should be functional, easy to navigate, and openly share details about the project, its whitepaper, and the team behind it (developers and major investors).
NB: Report any fraud involving cryptocurrencies to the FTC at ReportFraud.ftc.gov. But note that if you lose money, there is a real chance the SEC or other regulators won’t be able to help you recover it, even in cases of fraud.
- Know Your Risk Appetite
Cryptos are about as volatile as an asset can get, but this volatility can create opportunities for profit if you are looking to trade these digital assets.
The volatility is mostly attributed to regulatory uncertainties, which is why you should consider how much risk you’re willing to take when investing in a new coin.
The rule of thumb is “never invest more than you can afford to lose.”
Most experts recommend keeping crypto investments to 5 percent or less of your portfolio. The rest of the portfolio should have medium and low-risk investments. If the new coin plummets in price, you will have other investments to keep your portfolio stable.
If you go big, ensure you have paid off high-interest debt, have an emergency fund, and secured a retirement plan before investing in a new cryptocurrency.
Crypto trading strategies such as arbitrage trading can help you minimize risk when trading.
We expect many more cryptocurrencies to be introduced in 2023, and hopefully, now you know how to find new coins. Remember, new cryptos are only projects with profit potential; there’s no guarantee they’ll amount to anything significant. We’ve seen cases of new crypto projects experiencing a rapid increase in price because of the hype surrounding them before ending up being failed projects shortly after. Therefore, do not invest blindly and only invest what you’d be okay losing.