A new kind of income
Developers of recently released digital coins continue to raise funds for the development of their cryptocurrencies. How this happens and why the vast majority of such projects will not bring profit to investors
Popularization of cryptocurrency has led to new digital coins appearing almost every day. For example, CoinMarketCap already has more than 10,000 different tokens. Investors invest in new cryptocurrencies early to get the highest return. RBC-Crypto experts named interesting tokens for investment and explained how to choose promising projects on their own.
Now you can find lists of upcoming listings on decentralized trading platforms (IDOs), for example, using the calendar on CoinMarketCap (ICO Calendar section), said Nikita Soshnikov, Director of Cryptocurrency Exchange Service Alfacash. According to him, there is a lot of problem with such tokens - most of these projects are doomed to failure.
"Rookies in the crypto market certainly admire the potential return on early investment in young projects. ROI sometimes reaches thousands of percent, but my opinion is not an activity for a beginner," the expert explained.
Nikita Soshnikov called the investment a gamble at an early stage of the project development, because success depends to a large extent on luck. In this regard, he advised to allocate for the purchase of recently released tokens
a part of the investment portfolio, which is not a pity to lose, and to direct the remaining funds for the purchase of already held coins.
The key criteria for choosing tokens at an early stage should be the prospects and scalability of platforms, says Artem Deev, head of AMarkets' analytical department. In his opinion, in order to understand whether there will be a return on investment, it is necessary to assess how interesting new coins may become to users and what this product may lead to in the future.
"Rather, it is worth selecting on the principle of revolution and prospects. And to do this, it is necessary to collect expert opinions and facts about individual assets almost daily," the analyst added.
In order to reduce the time to study the project, Nikita Soshnikov advises you to immediately look at the team that is developing the project and its reputation in the industry. It will be a plus if they already have successful projects behind them, said Alfacash, director of cryptocurrency exchange service. He also recommended targeting Western developers from the UK, Canada and the United States.
Guarantees of very high, and sometimes even inadequately inflated yields in a short period of time are the main sign of fraudsters.
Artem Deev highlighted several interesting projects that are actively developing and may bring investors a good return in the future. According to him, it is worth paying attention to the ThetaDrop trading platform, where non-interchangeable tokens (NFTs) are located. It is part of Theta Network, which makes it possible to integrate with various products on the market, the launch of this platform can be a serious incentive for token growth, the analyst believes.
He also advised you to take a closer look at the Ethereum-Polygon (MATIC) scaling solution. According to Deev, this token showed high stability against the background of recent general correction, so it could be the key to his future growth.
Another project with a promising future is the crosschain protocol of Formation intellectual farming, which allows users to stake to receive remuneration in native currency Formation, providing cryptocurrency owners with maximum profit, the analyst concluded.