On a very frequent basis, one will see a question posted to reddit CryptoMarkets or reddit CryptoCurrency about how to decide what cryptocurrencies to invest in. Now, the answer depends on your own answer to questions:

  1. How much do you want to earn
  2. On what time frame do you want to earn it?
  3. Do you want to earn on auto-pilot or via manual trading/investing?

For me personally, as I write this: my answer is: “I study the 4 hour charts at BitTrex and buy the most bullish coin on the 4 hour chart using 2% of my account balance and I set a price target of 1% profit. I earn this income on auto-pilot by a computer program that I wrote that trades 6 times per day, once every 4 hours. As you can see from this screenshot, most trades close within 2 days and sometimes within minutes.”

For someone else, they might say: “I review the inital coin offerings and based on the quality of the coin being offered I invest and expect at 50% to 5000% gain over a 3-month to 2-year period. I am looking for the next Bitcoin or Ethereum. I trade manually.”

In other words, I am currently a purely technical trader. My automatic computer programs trades on charts with no knowledge about the coin itself . The other person is what is known as a fundamental trader. She bases her decisions on how much potential value she sees in the coin.

So you can see, the resources you use to achieve your gains will vary based on how much you want to earn, on what time frame you want to earn it and what sort of study you prefer.

So, please take a look through the resources below and decide what fits with your vision of profit in the best new money, cryptocurrency.

Bitcointalk Announcements

Scan the service announcements and coin announcements and buy promising coins the day they are announced. For instance OBITS was announced in the service area and less than 200 days later is worth 10,000 times what it cost at ICO (initial coin offering). Although honestly, I do not buy coins through ICO anymore. If you notice, coins take a dump and drop lower than the price you can get in the initial crowdsale. Take a look at WAVES’ chart, an excellent product. It dumped like crazy the second it hit the open market. It did recover and go past the initial dump, but just think how much easier it would’ve been to make profit if you bought after the initial dump. Another way to find newly tradeable coins is the new listings page at CoinMarketCap.

Dividend Paying Assets

If you find a good dividend paying asset, then you can compound your earnings: just take the dividends and buy more of the asset and take those dividends and buy more, etc. Sort of like Warren Buffet’s first business. He bought a pinball machine, put it in a store and took the profits of that and bought another pinball machine, put it in another store, etc. etc. Consult my survey of dividend paying assets (incomplete) and sprinkle in some aggressive Googling (or duck-duck-going) to find such opportunities.

Cyber.Fund and Cyber.Talk

The Cyber.Fund radar is an excellent tool for the purpose of finding investments with short and long-term explosive gains. That being said they still have a rating system whose rankings loosely match those of CoinMarketCap, but have other factors other than market cap used to create rankings. For instance AUGUR ranks high at Cyber.Fund but currently does not rank high at CoinMarketCap.

The forum run by the same people, Cyber.Talk, also often has early mention of promising projects.

So use Watch That Page or IFTTT or another service which notifies you daily of changes to a URL. That way, whenever there is a new project posted there, you will know immediately.

CoinMarketCap

Here you can browse through coins in a number of ways. First you can see which coins have had the most 24 hour volume. This might mean a lot of selling activity (this happens often with bad news or when a coin offered via a crowdsale first hits an exchange) or a lot of buying activity (a good coin takes between 6 months and 2 years before you see 2-fold and more gains). You can also just take a look at the coins with the largest market cap. These coins have already demonstrated promise, so when they dip it usually means they will come back up. As of this writing, BitShares costs $0.006 each and Factom is $1.70 but I would expect each to show 5-fold gains in the next 6 months. For long-term, the gainers and losers chart over 7 days and/or 24 hours is a good option.

ADSactly

ADSactly is an autonomous decentralized society. At least 2 members are professional day traders with private chat rooms (as of this day, the word is OKCash is a steal). And we often get instant inside deals. For instance we got a certain coin at half-price that was mentioned on Forbers magazine the same month.

Here is our public portfolio traded by some of our experienced members.

And every post in the profit section of this site is due to tips I got from the professional day traders aligned with ADSactly.

I also pay $200 per year for a particular insider group here. But that is not necessary. You can get good info on Cryptocopia from full-time traders for free.

Financial Underground Kingdom

I have to give a shot out to Financial Underground Kingdom. The guy/gal does a great job of running a blog. Very professional, with lots of nice posts.

Alvin Lee

Alvin Lee posts a lot of good information about how to find promising cryptos, primarily for trading, not investing. Scroll down to “Fundamental Analysis: Picking the Next Profitable Altcoin ” in his blog post “Bitcoin & Altcoins Trading: A Complete Guide to Riding this Cryptocurrency Rocket to the Moon! Tutorial of Trading Strategy Insights, Fundamental Analysis, Technical Analysis Frameworks & Tools.“.

Enough practice…

To see all this in action, visit the Invest section of this site where you see my actual buys.