There are many ways to find hidden gems or at least a list of tokens with good growth, but basically for a coin to pump strongly it needs to be in a hot trend.
Because the nature of our crypto market is highly speculative, where there is attention, there is money flow.
Therefore, the first step in the hidden gem hunting process is to research trends. You need to find trends that have the potential to explode in the future to bet on.
Trend is Friend!
According to my subjective experience, for a topic to explode strongly it needs to have some of the following properties:
The story is novel and applicable.
Easy to communicate, attractive to the outside crowd.
Backed by technology platform.
Convince retails to believe that it is the future of the future to cling to for life and death.
Finally, the most important thing is that it helps investors earn a lot of money in a short time (rather, earn a lot of unrealized profit).
Let's try to compare it with the big trends that were the market leaders in the past.
Particularly #memecoin is outside of normal morality. It does not need to be backed by technology nor does it need to be applicable. Memecoin is the most naked expression of the speculative market. Confidence simply comes from the expectation of price increases expressed right on the surface, not hidden deep under many layers of technology.
Let's talk more about technology, although it is not very friendly to most investors because of a lot of specialized knowledge and academic terminology. But besides memecoin, all trends in the market come from technological innovation. Back to basics, the entire crypto market is operating on the technology platform of blockchain, every upgrade or simply a creative innovation in technology has the potential to lead to an explosive cash flow event. For example, the ERC404 trend at the beginning of the year.
I have many articles analyzing market trends from in-depth to brief, you can read them again on my personal page or research blog (linktree in the profile description).
Here are some featured articles:
List of trends that are being closely followed (new update)
Notable crypto trends in 2024
Series: Looking for trends leading the crypto market
Potential trends become mainstream trends
After understanding potential trends, the next job is to dig deep into each group to find the pieces inside. Evaluate which pieces are important, which pieces have good growth potential, which pieces are easy to create a ponzi game.
At the same time, in the process of researching the puzzle, create a short list of outstanding projects to serve the next step.
With the short list you have, start classifying and preliminary evaluating each project through a quick check of products, technology, backer, coreteam and your experience. After this step, you will only have about 2-3 most potential projects left.
If you have followed me for a long time, you will see that before analyzing a project, I will have Ecosystem Overview articles to evaluate the potential first. A good project, a good solution located in a bad ecosystem is like a "pearl at the bottom of a well" where light cannot escape the mud.
The final step is to deep-dive into each project to make investment decisions.
Actually going through each step may seem lengthy, but if you always follow the market closely, analysis steps 1 and 2 are relatively quick. Only when deep-diving into a project does it take a lot of time and effort.
Regarding how to basically analyze a project, I will not go in-depth because there is already a very detailed tutorial. You can read it again here.
Evaluate crypto projects using fundamental analysis
Above are some research experiences I want to share with you, especially newbies, hopefully helpful in the process of conquering this super cycle. Banana Zone incoming 🍌