4 Tips to Find Altcoin Gems Before They Explode

The final leg of this bull run is still in the waiting room. Bitcoin continues to do its sideways price development. All the altcoins are following suit. So, in other words, there’s still time to get your hands on some altcoin gems.

But that may be easier said than done. Or is it? Well, my research team and I have dug deep. That’s why I have 11 tips for you on how to find altcoin gems. This allows you to position yourself at the start of the next bull run leg. So, let’s take a look at what these tips are.

1) Find Altcoin Gems in a Trending Sector

Here’s an easy way to find a trending sector. Go to CoinGecko and hover over ‘Cryptocurrencies’. In the dropdown menu, the second option is ‘Categories‘.  Now you will see all categories, listed by market cap. However, take a look at the top of this page. Next to ‘Categories’ are the top 3 trending categories. In this sample, these are:

• Stablecoin Protocol
• Internet of Things (IoT)
• PolitiFi.

You can look for interesting coins here, or in a category to your liking. Each page shows the current price, changes in 1 hour, 24 hours, and 7 days, as well as the market cap, and 24-hour volume. It also lists the number of coins in this category.

Each page you open now, you will see a box at the top of the page, in the middle. This has three trending projects in this category. However, you can also scroll down the page, and see if any other protocols do better. For example, in Top Binance Launchpool Coins, My Neighbour Alice ($ALICE) is 81.7% up over the last 7 days. However, it’s not listed in the ‘Trending’ box. These boxes only look at the last 24 hours. This helps you see what people are interested in right now.

2) Trending Sectors Have a Greater Number of Unique Wallets

Trending sectors have in general a greater number of unique wallets. For example, Solana is still a trending chain. I don’t see their run ending any time soon. Despite a current dip in the $SOL price, Solana should perform well during this bull run.

Now, to check if a trend is sustainable, you need to look for the number of unique wallets. So, the higher the number of unique wallets is, the more likely sustainability is. This unique wallet analysis has two parts:

1. New addresses.
2. Active addresses.

In these all-time charts, we can see that since December 2023 an uptrend in unique wallets started. Furthermore, and this is important, the uptrend keeps going or is stable. 3 The number of active wallets should stay close to or above 1 million active wallets. This indicates that this trend for Solana will continue. Here is an example:

Source: Dune

So, you learned how to identify a trending sector. If your conclusion is that it is going to trend for a while, dig out the potential altcoin gems in this sector. That is essential. Keep in mind that I only show a few of the 11 total tips. To get access to all these tips, I recommend you to join our Alpha channel.

Besides these tips, you can also find inside information on airdrops, micro caps, IDOs, and more. All this for only $15/ month. One good trade alone pays many years of fees.

3) Fundamental Analysis

The fundamental analysis is a core part of finding altcoin gems. Whenever you do research into a crypto project, this should be part of it. So, let’s look at some basic, Fundamental Analysis facts:

• Make sure that the project has a website. If not, you might as well forget about it
• Check the team. If the team is anonymous, it’s a red flag, and it’s best to skip this project. That’s the same if there’s no on-chain or social credibility. 
• If team members are serial (2nd or 3rd time) entrepreneurs, that’s a positive sign. Especially in crypto.
• Check X (former Twitter) or Telegram number of members or followers. However, you can fake these. So, check the comments section to get a feel of the community vibe. It’s also important to check the quality of their tweets and posts.
• Another aspect you want to check is the quality of investors. The investors should be available on their website and in the whitepaper. Tier 1 or Tier 2 VCs indicate that the project is likely to be of high quality.

4) Marketing Strategy Is Supercritical

Good marketing of a project is essential in crypto. Here’s a golden rule for you. A good project with bad marketing will underperform a bad project with good marketing. So, let this also be a call to be cautious. Nowadays, plenty of projects know very well how to promote or market their product. However, that doesn’t mean it has any substance.

For example, rapid building, without market updates, doesn’t move the token price. Community building is also part of this, so, look for this. In general, don’t fall for marketing gimmicks. In contrast, check for substantial updates. For example:

• Product deep dives.
• Product version updates.
• New product rollouts.
• New partnerships.
• Token listing on top-tier exchanges.

These updates should be available on a project’s social media. For instance, X, Telegram, or Medium. However, make sure to look for the official accounts. This is one of the key tips, so make sure you get this right. Don’t be afraid to spend time on this. It will pay off later. So, that’s 4 out of 11 tips. 

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.