How to find new crypto coins today?
Cryptocurrencies once struggled in the backwaters of finance. Now they have become part of the mainstream discourse. As a result, their prices and valuations have exploded in the last decade as investors, searching for growth in a zero-interest rate environment, poured money into the asset class. An early investor in Bitcoin would have racked up tremendous returns since its launch in 2009.
The inflow of money has broadened the boundaries of crypto’s investing landscape and made it more complex. There are more than 18,000 cryptocurrencies available for trading in crypto markets. Each coin boasts an array of technical terms, many of them difficult to explain, to sell its value proposition.
So how do you find your new crypto coin? Knowing where to look and how to evaluate them will help you determine whether the coin is worth it or not.
Using several sources to vet a coin is the best way to find a new coin crypto coin to invest in.
Exchanges, data aggregators, and social media are some of the quickest methods for finding new coins.
Cryptocurrency tools like PooCoinCharts and TokenSniffer provide in-depth looks at coins that can help you decide whether a coin is valid or a rugpull.
Non-fungible tokens, cryptolinked exchange-traded funds, and initial coin offerings are also ways you can gain exposure to this developing and exciting market.
Where to Find New Crypto Coins
Should you invest in an initial coin offering (ICO)? Are non-fungible tokens (NFTs) a good idea? What is DeFi? Navigating the cryptocurrency landscape can be a confusing affair. The absence of quantifiable and trustworthy criteria for evaluation and a plethora of scams in this market has further perplexed potential investors and made them wary.
Despite the problems, however, cryptocurrencies still remain an attractive asset class. They can add diversity to your portfolio, and their price volatility can offer good returns. There are several places you can monitor to see what new crypto coins are coming online:
Cryptocurrency exchanges: Coinbase, Gemini, Kraken, Crypto.com, Binance, Gemini
Data Aggregator: Coingecko, CoinMarketCap
Social media: Twitter, Telegram, Discord
Websites: Top ICO, Smith & Crown, ICO Bench
Tools: PooCoin Charts,TokenSniffer
DeFi Platforms: Applications that are supplanting traditional financial services. Some might have tokens or coins with prospects.
NFT Marketplaces: OpenSea, Rarible, and SuperRare are popular marketplaces to look for new NFTs that show promise.
ICOs: Initial coin offerings are fund-raising events for possible coin releases.
Cryptocurrency exchanges are one of the most reliable sources for finding new coins. For example, Coinbase generally lists new coins on its website, but you'll need an account for better access. Binance has a list of new coins you can look over and investigate further to see if any are worth investing in.
A data aggregator gathers information on specific topics. Cryptocurrency data aggregators come in handy for finding new crypto coins. For instance, CoinMarketCap collects and displays a list of new coins, their prices, market capacity, and trading volume. This type of service helps you get some of the information you need to determine what other investors think about the coin and whether it has potential.
Market capacity is the total fiat value a specific cryptocurrency has on the market.
CoiGecko is another data aggregator that lists new coins with much of the same information that CoinMarketCap offers.
Social media is known for its ability to transmit information quickly. Twitter, for example, is one of the quickest moving and responding platforms in the U.S. Cryptocurrency developers and founders can be found on Twitter tweeting about their cryptocurrency whenever there are changes or new coins. Notifications for specific keywords on Twitter are especially helpful. "New crypto," "crypto release," or simply "crypto" will instantly send you notifications about any cryptocurrency-related tweet.
Telegram is another instant messaging platform that can deliver timely new crypto coin developments.
There are many websites that you can look over to find new coins. Some of the more reputable ones are Top ICO, Smith & Crown, and ICO Bench.
You can use several tools to help you verify the validity of the new cryptocurrency you're investigating. PooCoin Charts lets you enter the token name or its address and displays information about transactions, contracts, holders, price, and more, enabling you to see whether anyone else is active.
Tokensniffer lets you enter the cryptocurrency's name or address and displays an audit of the coin. For instance, a scan of Ax-1 Orbit (address 0x0c...b805) displayed the following information on April 21, 2022:
Warning: The coin was flagged for being part of a scam, bug, or a hack
Swap analysis: Token is sellable, has a buy and sell fee of less than 10%
Contract analysis: Verified contract, no prior similar contracts, the source is not an owner, no special creator permissions
Holder analysis: Creator holds less than 5% of the supply, other holders have less than 5% of the supply
Liquidity analysis: Not enough liquidity, 95% of liquidity is burned/locked, creator holds less than 5% of liquidity
Token similarities: None
Token sniffer lets you view the contract code and generate a bubble map that shows you the creator's address, the addresses of the top 100 holders, and the percentage they hold. You'll also see any burn addresses that might exist—a burn address is where developers send coins to remove them from circulation permanently.
Decentralized Finance (DeFi) platforms are a relatively new venue for crypto investments. They function like traditional finance marketplaces, except they use smart contracts to execute transactions. Many DeFi platforms have native tokens used within their networks to facilitate transactions. Examples of popular DeFi platforms are MakerDAO, PancakeSwap, and Aave.
Non-fungible Token (NFT) Marketplaces
NFTs are one-of-a-kind digital assets that have been tokenized—which is the process of linking an encoded alphanumeric sequence to the asset and storing that information on a blockchain. This establishes ownership without question because the token's network validators must verify ownership through a consensus.
The market for NFTs took off in 2021 when prominent auction houses like Christie’s and Sotheby’s sold digital art worth millions of dollars to customers.
NFTs are also critical components of the metaverse, an emerging tech trend championed by enterprises that operate in the digital landscape.
Examples of popular NFT marketplaces are OpenSea and Rarible, where you can find them ranging in price from hundreds to tens of thousands of dollars.
There are also specialized marketplaces that focus on a particular industry or sport. For example, the National Basketball Association (NBA) has an NFT marketplace called TopShot while the National Football League (NFL) has partnered with Dapper Labs to produce exclusive digital video highlights of iconic moments from its history.
Initial Coin Offerings (ICOs)
In 2018, initial coin offerings eclipsed venture capital as the primary fundraising method for entrepreneurs. Startups and prominent companies alike jumped onto the ICO bandwagon. Then the ICO bubble burst as scams proliferated its ecosystem and the Securities Exchange Commission (SEC) began investigating and cracking down on ICOs.
You can also invest indirectly in cryptocurrencies through derivatives that trade on mainstream exchanges. The Chicago Mercantile Exchange’s (CME) crypto futures, including bitcoin and ether futures, are a popular option with investors looking for indirect exposure to crypto. Bitcoin-linked ETFs, based on CME’s bitcoin futures, debuted in crypto markets in 2021—more continue to emerge as brokerages work to persuade the SEC to approve crypto-linked ETFs.
Researching New Crypto Coins
Beneath their technical jargon, cryptocurrencies are products that serve a purpose, whether it be only a method of payment (bitcoin) or as a utility token used to perform actions on a blockchain (ether). Here are some factors to look into and tools you can use to help you identify a coin that is not a rugpull—a coin whose developers will accept payments for it and then pull it off whatever platform you purchased it from—taking the funds with them.
All new cryptocurrency coins should have a reason to exist, like a function within a blockchain network or virtual machine. If they don't, it might be an indication that something is not right.
Ethereum’s token ether (ETH) is used as gas on its blockchain. Gas is the term Ethereum uses to reference paying for someone's energy use to verify your transaction. This makes ETH a perfect example of a use case that might incentivize someone to buy ETH. Ethereum is designed for scalability and future development. Many decentralized finance applications are built upon its blockchain, and many more are being developed.
The uses for Ethereum, the global virtual machine that powers DeFi and is rumored to be powering Web 3, continue to grow. New utility tokens designed to work on the Ethereum Virtual Machine (EVM) emerge daily.
Bitcoin, on the other hand, was designed purely as a payment method. It became more valuable to investors when they noticed price increases on cryptocurrency exchanges. Shortly after that, it developed a new use case as a store of value and an asset for investors who enjoy speculating.
The more use cases a new coin and the blockchain it supports have, the more likely it is that the coin will last long enough to experience growth. However, this won't always be the case—Shiba Inu (SHIB) is a prime example. SHIB skyrocketed in value in 2021 on the back of retail investor interest—it has no use cases. It is merely a cryptocurrency for the sake of being a cryptocurrency, a memecoin—yet, it generally hovers in the top 20 cryptocurrencies by market capacity.
A cryptocurrency needs to have liquidity—meaning it should have enough trading volume that you can sell yours quickly if you need to. If you find a cryptocurrency with no volume, you should consider waiting to see whether it will develop any. If other investors aren't trading a new crypto coin in large amounts, it might indicate that it isn't yet worth buying or it is a scam.
You should identify the value a coin has or might have. It's likely that if it has value to you, others will value it. This type of value isn't monetary; it is more intangible, such as an NFT that you identify with at a personal level. For example, this could be a graphic that triggers a happy memory, and you want the NFT so that you can be reminded of it—and hope for growth at the same time.
Some songwriters and musicians are creating NFTs from their music—purchasing a song NFT directly supports the artists and gives you ownership of the token (and whatever rights the artist granted when the token was minted). The sports tokens mentioned previously may be the equivalent of trading cards or videos of the future.
Approach New Coin Projects With Caution
Cryptocurrencies have emerged from the backwaters of mainstream finance as a viable asset for investment. However, the universe of investable cryptocurrencies and crypto-related products and services is still small and requires careful evaluation.
If you're interested in investing in digital assets and new crypto coins, you should talk to a finance professional who will help you figure out if the investments make sense for your goals and financial circumstances.