How to detect potential Cryptocurrencies

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Scamcoins

A scamcoin is a crypto currency that is a fraud or scam, or is otherwise not a real cryptocurrency. Scamcoins are usually created to make money for the creator.

The most common way this happens is when someone creates an entirely new blockchain that doesn’t have any actual utility and then releases tokens (which can later be sold in exchanges) onto it. The scamcoin creator hopes people will buy their tokens so they can exit with their profits.

Shit coins

Shit coins. These are the ones that have no purpose, no dev team, no community, little to no use case, a vague whitepaper, and zero social media presence. If you see this type of coin then it should be avoided at all costs.

There are also smaller coins with good potential that have not been noticed by the masses yet. In this case it is best to wait until they become more popular before investing in them because there is a chance that they could become very valuable in the future if they continue to develop their ecosystem (the number of users using their product and services).

Overhyped coins

As you’re getting started with cryptocurrency, it’s important to be able to spot the overhyped coins. These are often the ones that have a lot of hype but no substance. The best way to do this is by looking at their market cap and number of daily transactions. If these numbers are relatively low, then the coin may not have many users or developers who are interested in working on it.

Another way to tell if a coin is overhyped is by examining its community and developer activity on social media outlets such as Reddit or Twitter. If there aren’t many people talking about the coin online, then it’s probably not worth investing in because there won’t be much demand for it when you go sell your coins later on down the road (assuming they’re worth anything).

Abandoned coins

Coins that are abandoned by the developers are coins that were once popular but have lost their community.

If a coin is abandoned, it’s likely that no one will be working on it anymore and there might not be any new updates or releases for this cryptocurrency. If a coin has lost its community, then it’s also likely to be abandoned as well because if someone wants to work on an abandoned project or buy an abandoned coin, they can’t do so since there aren’t people who want them anymore.

Hyperinflated coins

Some coins are hyperinflated, meaning that their supply of coins is rapidly growing. This usually happens when developers create a huge amount of their own tokens and then sell them on exchanges, or give them away for free to the public.

In either case, this can be disastrous for the currency’s value. Here’s why:

  • A large supply of tokens means there are many more people who have access to this currency than there were before it was created. This means that if you want to buy into an investment, odds are there will be someone else willing to sell it at a lower price than what you’re willing to pay.
  • Hyperinflation also means that new investors have no incentive to hold onto their holdings because they know they could buy more coins later on with less effort than holding onto those same coins now would require (because everyone else is doing the same thing). So instead of saving up your money in order grow your wealth over time through compound interest or reinvested profits from selling items made from these cryptocurrencies — which would increase both demand for these currencies as well as increase its value overall — people will just keep buying up more and more until most people don’t want anything except cash anymore!

Cryptocoins with a working product

Another thing you can look for is whether the coin has a working product. Cryptocoins with a working product are likely to be more successful than those without because it gives the coin actual value and utility. A coin that has a working product can be any of the following:

  • A prototype or beta version of a product
  • A service, such as an online platform where users can buy or sell products or services
  • A website

There is no easy way to predict which crypto will explode, but I can give you some guidelines on how to spot the potential duds.

There is no easy way to predict which crypto will explode, but I can give you some guidelines on how to spot the potential duds.

  • Look at the market cap (market cap is the total value of all the coins in circulation).
  • Look at their price movement over time and compare it with other coins that have gone up a lot
  • Look at their community/user base and see if they are active or not
  • Check out their team and see if they’re well known in the blockchain community or not
  • See what technology they use, how far along it is, how often updates are released etc — try looking up Github commits too!