Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.


How To Pick Winning Cryptos – Part 1

Recommended Posts

How To Pick Winning Cryptos – Part 1

According to one source, there are more than 19,000 cryptocurrencies in existence and dozens of blockchain platforms that exist.

Most of these cyptos will not make money in the long run. A large percentage of them would even become eventual losers.

However, there are certain cryptos that will bring fortunes to those who invest in them. In the past several years, many an investor has become rich by investing in coins like BTC, ETH, BNB, AXS, XMR, etc.

Picking winning cryptos, just like picking winning stocks: Investopedia defines a stock pick as when an analyst or investor uses a systematic form of analysis to conclude that a particular stock will make a good investment and, therefore, should be added to their portfolio.

Good stock pickers consider important factors like company strength relative to its peers, trends in earnings growth, the debt-to-equity ratio in line with industry norms, long-term strength and stability, price-earnings ratio as an indicator of valuation, and effectiveness of executive leadership, how the company treats dividends, etc.
How to pick winning cryptos – Part 1Those who are excellent at picking winning stocks inevitably become successful investors. Just like stock picking, crypto picking requires good knowledge and diligence.

Are you looking for cryptos that have great potential for unusually massive returns?

If you want to pick cryptos with huge future potential, you need to make research with due diligence. The factors to be considered are listed below. If a crypto meets all the requirements listed below, then there is a very high probability that it would succeed in the long term, bringing enormous riches to those who buy and hold it.

What problem does the crypto solve?
We know the problems solved by Bitcoin. Ethereum is known for smart contracts, plus many other uses. Monero is known for privacy. Tornado Cash improves transaction privacy by breaking the on-chain link between source and destination addresses. Helium is a blockchain-powered wireless service that provides a long-range connection to nearby Internet of Things (IoT) devices. Uniswap is trying to solve decentralized exchanges’ liquidity problem, by allowing the exchange to swap tokens without relying on buyers and sellers to create that liquidity.

What problem does the token of your choice solve?

Many people will just create “shit” coins and market them, hoping that the price will continue to skyrocket. A lot of useless coins like that will end up going to zero in the long run.

In the past a lot of coins have gone to near zero and will never recover. Many more coins will go to zero because the business models behind them are not sustainable and they do not solve unique problems.  

If a coin solves a unique problem, then it’s already on my radar.
Look at the tokenomics
Robert Stevens defines tokenomics as a combination of “token” and “economics.” It is a catch-all for the elements that make a particular cryptocurrency valuable and interesting to investors. That includes everything from a token’s supply and how it’s issued to things like what utility it has.

For instance, let’s take a glace at a summary of the tokenomics of Lucky Block, a token with a very huge future potential.

LBLOCK has lower operating costs. Lower operating costs mean Lucky Block can give back more in rewards to its token holders and charitable organizations and good causes. Winners are paid in LBLOCK, which they can either hold to benefit from the token rewards or cash out. Every time LBLOCK is sold on a DEX a 12% transactional fee (tax) is applied (see table 1 below). 4% of this transactional tax is added to the prize pool available for weekly jackpots. The remainder of the 12% tax will be distributed to the liquidity pool, token burn, and the LuckyBlock NFT fund (see table 2 below). A 1% burn rate means Lucky Block is a deflationary asset and this will help to underpin token value.

Who are the people behind the project?
You need to vet the team.

Who are they? Do they have a good reputation? What is the biography of an individual in the team? Have they been involved in any businesses and projects in the past, and what are the outcomes of those projects? Do they have criminal records?

You need to ask questions, since the team behind a project is also a big determining factor.

Try to talk to the team
Can you talk to the team behind the crypto project? Are they friendly? Are they willing to answer your questions? What are their aims and ambitions?
How to pick winning cryptos – Part 1
Look at the token distribution
Once again, let us use the token of Lucky Block (LBLOCK) as an example:

Lucky Block Token distribution
Total token supply: 100,000,000,000 (100 billion)
Presale: 32,500,000,000 (32.5 billion – 32.5%)
Strategic partners and advisors: 20,000,000,000 (20 billion – 20%)
Marketing: 22,500,000,000 (22.5 billion – 22.5%)
Team: 20,000,000,000 (20 billion – 20%)
Product development: 2,500,000,000 (2.5 billion – 2.5%)
Locked liquidity – 1-year lock: 2,500,000,000 (2.5 billion – 2.5%)

Look at the developers
Are the developers really competent? Do they even know what they’re doing? Furthermore, some of the questions that need to be asked as regards the team behind a crypto project also need to be asked as regard the developers.

Look at the competition
Does the crypto have a competitive advantage? Are there other competitors who have similar projects, trying to solve the same problem which the crypto on your radar is trying to solve? Do they have better tokenomics? What are the strengths and weaknesses?

Why do I need a particular token? The answer is that 90% of the time, I don’t need the token, or else I could end up losing money on it. However, if a certain token project meets all the criteria mentioned above, I would invest in it.

NB: There is another big method of picking winning cryptos, and it has proven to be invaluable, with verifiable results. That important method will be examined in the next article in this series.

Source: https://learn2.trade/how-to-pick-winning-cryptos-part-1

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Topics

  • Posts

    • Date: 4th December 2023. Market Recap: Cryptos Rise; Oil & Gold Down; Stocks Steady. The holidays got a little cheerier amid signs that the major central banks have come to the end of their aggressive tightening postures. Despite protestations from policymakers to the contrary, the markets are now building in the start of rate cuts in 1H 2024. Those hopes underpinned one of the best November’s on record for bonds and stocks, and helped boost gold to a new record high! Economic Indicators & Central Banks:   The market sentiment remains uncertain, as Chair Powell did not offer much pushback to expectations that rate cuts are the next move on the agenda or that there was a massive easing in financial conditions in November. The US November payrolls report on Friday is crucial for market expectations of rate cuts. Analysts anticipate a soft landing for the US economy, with positive but below-potential growth in the next six quarters. BofA notes a positive outlook for emerging markets, which are experiencing historically positive returns after the last Fed hike. Market Trends:   Fed Chair Powell reminded investors the bank is not in a hurry to cut rates and yields are off Friday’s lows. Treasuries and Gold declined from session highs. Yields rose across various tenors in Treasuries, with the 10-year trading around 4.23%. Asian shares showed mixed results, with gains in Australian and Korean stocks, while Japanese equities fell. JPN225 closed down 0.6% at 33,231.27 after earlier sliding as much as 1.22%. European and US stock futures remained stable. Financial Markets Performance:   The USDIndex nudged higher with Treasury yields and is at 103.43. EURUSD broke below 1.09, indicating a possible reversal of the 2-month rally, however 1.0820-1.0865 remains the key support area. USDJPY dipped to 146.22, reaching a nearly 3-month high against the US Dollar. Currently though, it has reverted some gains, as speculation about an eventual unwinding of the Bank of Japan’s policies added pressure on the Yen. Gold down from all-time highs above $2,100, benefiting from lower yields. Oil prices faced challenges due to doubts about OPEC+ maintaining output cuts, high US production, and increasing rig counts. UKOIL eased to $78.37 a barrel, while USOIL fell to $73.63. Geopolitical tensions in the Middle East added to market considerations. Bitcoin surpassed $41,000, reaching its highest level since April 2022. Bitcoin’s rebound continued, reaching $41,746, with expectations of interest-rate cuts and potential ETF approvals. Smaller tokens like Ether and Dogecoin also experienced gains. Key Mover: EURJPY down by 1.92%. Next Support levels: 159 and 158.50. This week:   Investors are closely watching economic indicators, including Australian growth, Chinese inflation, and US non-farm payrolls data. The Reserve Bank of Australia is expected to maintain a hawkish stance. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $CERE Cerevel Therapeutics stock breakout watch , see https://stockconsultant.com/?CERE
    • $NVEI Nuvei stock upside gap breakout watch , see https://stockconsultant.com/?NVEI
    • $SRPT Sarepta Therapeutics upside gap breakout watch above 86.15 , see https://stockconsultant.com/?SRPT
    • $AOS AO Smith stock strong day, top of range breakout watch , see https://stockconsultant.com/?AOS
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.