5 Steps to Find the Next 100x Altcoin Early

What you need to do before looking for the next 100x altcoin

Before diving into the hunt for a 100x altcoin, grounding yourself in the cryptocurrency market's fundamentals is essential. Understanding blockchain, consensus mechanisms, tokenomics, and recent technological advances is critical. This knowledge differentiates potential from hype.

The allure of quick riches in the crypto world brings its share of dangers, notably scams. In 2022 and 2023, the cryptocurrency market saw a staggering amount of fraudulent schemes, with gigantic losses. Projects promising guaranteed returns or those shrouded in anonymity often signal red flags. Vigilance and due diligence are your best defenses against these pitfalls.

Securing your investments is paramount. With increasing digital asset theft, using secure wallets and practicing safe storage are non-negotiable. Consider the price chart of Polygon, an altcoin that went from significantly less than 1 cent to more than $2.5 as a guide and inspiration, reminding you of the research and strategy needed to spot such opportunities.

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The Binance exchange is one of the largest cryptocurrency exchanges in the world with its headquarters in Hong Kong. According to the CoinMarketCap cryptocurrency portal, Binance holds the top spot in terms of aggregate indicators of the platform's daily turnover, the number of novices and active users, liquidity, and web traffic (ranking, queries, statistics in search engines, etc.). The exchange is also a cryptocurrency startup that has its own “native asset” used in the Binance ecosystem as the “basis gas” (payment internal unit). More about Binance Card

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The BitGet crypto exchange provides traders with the opportunity to trade in spot, futures, and cryptocurrency. Cryptocurrency is used exclusively as instruments at the exchange: BTC (₿), LTC (Ł) ETH (Ξ), USDT (₮) and others. Trades are carried out on the crypto exchange’s own platform, which is available as a web terminal and an application for mobile devices. BitGet's fees are lower than its competitors in the market, with maker fees of 0.02% and takers of 0.06%. The commission can also be paid with bonus funds that each BitGet client receives upon registration, verification, and a trading account replenishment. There are no fees for maintaining an account, but a commission is charged upon withdrawal, the amount of which depends on the cryptocurrency in which the withdrawal is made. For investors, BitGet offers its own service for copying trades, and it is available at the exchange and at an affiliate program. Novice traders can use demo accounts to hone their trading skills, but there are no educational materials on the website. The BitGet cryptocurrency exchange provides services on an international level and cooperates with traders from different countries.

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Polygon chart

The image depicts a price chart of Polygon against the US dollar, highlighting the all-time low and the all-time high in prices.

5 Steps to find the next 100x altcoin

Discovering an altcoin with the potential to deliver a 100x return is akin to finding a needle in a digital haystack. The journey requires a blend of technological insight, market acumen, and strategic foresight. Here, we outline a five-step roadmap to navigate this complex landscape, aiming to bring clarity and direction to your investment approach.

• Use Tools and Resources: Leverage the wealth of information available on crypto analytic platforms like CoinMarketCap, CoinGecko, and others. These platforms offer critical data and insights that can help you identify emerging opportunities. Community feedback on social media and forums also provides valuable sentiment analysis.

• Research and Due Diligence: Deep dive into potential investments by examining whitepapers, roadmaps, and the development team's credentials. A project's value proposition, use cases, and future plans are essential factors to consider.

• Do Fundamental Analysis: Assess the real-world application, partnerships, and regulatory compliance of the project. Coins with practical use cases and strong partnerships often have a solid foundation for growth.

• Do Technical Analysis: Analyze market trends, trading volume, and market capitalization to understand investor interest and the potential for price movements. Recognizing patterns and breakout points can be crucial for timing investments.

• Develop an Investment Plan: Establish clear goals, diversification strategies, and risk management measures. Setting targets and stop-loss levels before investing can help protect your capital and maximize returns.

Step 1. Use tools and resources

Navigating the vast ocean of cryptocurrencies requires reliable tools and resources. Platforms such as CoinMarketCap, CoinGecko, 3Commas, and CryptoSlate are invaluable for their comprehensive data and insights. They provide real-time information on price movements, market capitalization, and volume that are crucial for making informed decisions.

Equally important is tapping into community feedback. Social platforms like Reddit, Twitter, Discord, and Telegram are rich sources of sentiment and feedback from a diverse set of participants. These communities can offer unfiltered perspectives on projects, sharing experiences, expectations, and concerns that may not be evident from data alone.

Step 2. Research and due diligence

• Whitepapers and Roadmaps: A project’s whitepaper and roadmap are its blueprint. Reading these documents thoroughly can give you insight into its unique value propositions, practical use cases, and future plans. They reflect the project’s ambition, feasibility, and attention to detail.

• Development Team: The people behind a project are as critical as the project itself. Investigate the track record and reputation of the developers and advisors. Experienced and reputable team members can significantly enhance a project's credibility and its chances of success.

• Community and Ecosystem: A vibrant, engaged community is often a sign of a project's vitality. Explore forums, social media, and other platforms for community interactions. A strong community not only supports the project but can also drive adoption and foster a robust ecosystem around the coin.

Step 3. Do fundamental analysis

Fundamental analysis delves into the core attributes of a cryptocurrency to evaluate its long-term viability.

• Real-World Use Case: Seek out coins that address genuine problems with practical applications. Cryptocurrencies that offer solutions to existing challenges in industries such as finance, supply chain, or healthcare have a foundation for adoption and growth.

• Partnerships and Collaborations: Partnerships with well-established companies are promising indicators of a project's credibility and market acceptance. They can provide the necessary infrastructure, exposure, and validation that accelerate adoption.

• Regulatory Compliance: In a landscape where regulations are evolving, ensuring that a project adheres to legal standards is crucial. Compliance reduces the risk of shutdowns, fines, or other legal issues, providing a more stable investment.

Step 4. Do technical analysis

Technical analysis focuses on market behavior, primarily through the study of price charts and trading volumes, to forecast future price movements.

• Market Trends: Understanding the general direction of the market is vital. Analyzing trends helps in identifying whether the overall market sentiment is bullish or bearish, affecting altcoin prices. Look for patterns and potential breakout points that signal buying opportunities.

• Avoid investing in very risky altcoins during a bear market: Altcoins tend to suffer significantly in bear markets, making them riskier investments. It's often wise to wait for signs of a market turnaround before investing.

• Volume and Market Cap: Trading volume and market capitalization are key indicators of investor interest and the potential for growth. High volume in relation to market cap can indicate a strong interest in the coin and, potentially, price movement to the upside.

Step 5. Develop an investment plan

Creating a well-thought-out investment plan is crucial for navigating the volatile landscape of cryptocurrency investments, especially when considering altcoins with the potential for 100x returns.

• Set Targets and Stop Loss Levels in Advance: Before making any investment, define clear entry and exit strategies. Setting target prices for taking profits and stop-loss levels to minimize losses allows you to manage risk effectively, ensuring emotions don't dictate your trading decisions.

• Diversify Your Portfolio: Avoid the temptation to put all your funds into a single project, no matter how promising it may seem. Diversification spreads your risk across different assets, protecting you from significant losses if one investment underperforms.

• Invest Only What You Can Afford to Lose: The high-reward potential of cryptocurrencies comes with high risk. It’s essential to only invest money that you can afford to lose, ensuring that potential losses do not impact your financial stability.

• Stay Informed: The crypto market is dynamic, with new information and developments constantly emerging. Keeping abreast of the latest news, technological advancements, and regulatory changes can help you make informed decisions and adjust your investment plan as needed.

Pros and cons of investing in altcoins

Investing in altcoins can be an attractive proposition for many investors looking to diversify their portfolios beyond the more established cryptocurrencies like Bitcoin and Ethereum. However, as with any investment, there are both potential rewards and risks involved. Understanding these can help investors make more informed decisions.

For further insights into crypto investing, read our article on How To Become A Successful Cryptocurrency Investor?