Most investors, even those new to the cryptocurrency market, have likely heard of Bitcoin and Ethereum – but finding up-and-coming coins to invest in can be a trickier task.
Newer projects with lower market capitalizations can make for riskier investments, according to Daniel Polotsky, co-founder and chairman of crypto kiosk provider CoinFlip.
“While they may offer greater upside, they also have a much higher chance of failing completely,” Polotsky told The Post.
Cryptocurrency experts advise new investors to start out with mainstream assets like Bitcoin and Ethereum.
That’s because a common mistake among newbies is that “they feel like they missed the boat with Bitcoin, so then they buy some of these smaller coins, like these meme coins that are like four cents a coin, thinking it’ll be the next Bitcoin, and those coins are usually four cents for a reason,” Ben Weiss, co-founder and chief executive of CoinFlip, told The Post.
Investors with some cryptocurrency experience may be ready to dive into newer coins and seek out the next big thing – and there’s a lower-risk way to do so.
As cryptocurrency has skyrocketed in popularity, one challenging aspect of picking new coins to invest in isn’t a lack of information, but rather an overload.
It can be difficult to know where to turn with so many different crypto platforms and newsletters available today.
Often with cryptocurrency, which typically isn’t pegged to any fiat currency, public opinion can be a great indicator of a coin’s trajectory.
“For better or worse, crypto prices are often driven by both hype and substance,” Polotsky told The Post.
There are sizable crypto communities on social media platforms like X, formerly known as Twitter, and Reddit in particular, where a simple search can help users gauge prevailing sentiment on a coin.
Another helpful factor when researching a new coin is to dig into the team behind it.
“Anonymous teams may pose greater risks, as they face less reputational damage if they were to rug pull,” Polotsky told The Post.
Some smaller memecoins, for example, offer little public information on the teams behind them or keep their creators wholly anonymous.
A more transparent team lends more credibility to newer coins, since it shows someone is willing to take accountability for the project.
Are You Crypto Curious?
Download a trusted exchange app — Start by choosing a licensed crypto exchange. We recommend starting with the Best Wallet app, available for both iOS and Android.
Create and verify your account — Sign up using your email, Google, or Apple ID. To complete registration, you’ll need to verify your identity with a government-issued ID and enable two-factor authentication (2FA) for added security.
Fund your account — Deposit money into your account by linking a bank account or credit card or even using gift cards. Choose an option that best fits your lifestyle.
Buy your first cryptocurrency — Use the app’s marketplace or swap tool to purchase crypto by entering the ticker symbol — like BTC for Bitcoin or ETH for Ethereum — and follow the prompts to complete the transaction.
Choose how to store your crypto — Decide whether you’ll keep your crypto in the exchange, move it to a digital wallet (hot wallet), or store it offline (cold wallet) for extra protection.
There are several reputable sources where investors can dig into research on new crypto coins.
Polotsky recommends simple research platforms like Messari, CoinGecko and DeFi Llama, which lay out crucial coin metrics like trading volume and fees.
Investors can gain inside scoops on new coins by attending crypto conferences and hackathons, along with surfing X and Reddit, Polotsky told The Post.
And building relationships with other crypto enthusiasts – though not as quick as a Reddit search – can help investors stay up-to-date on the latest happenings in the space.
The good news is that there’s no end to exciting new cryptocurrencies being added to blockchains.
Sites like CoinMarketCap and CoinGecko list all the new coins added to their databases over the past 30 days, including cryptocurrencies that trade on major blockchains like Ethereum and Solana.
At the time of writing, four new coins have been added to CoinMarketCap within just the last five hours.
The sites organize new cryptocurrencies by price, market cap, volume and blockchain.
Polotsky said some of his most exciting picks include Ondo and Plume, which are both Real World Asset tokens – digital coins that represent actual, tangible assets that exist outside the blockchain.
After researching and finding a new cryptocurrency that you’d like to purchase, the next step is to invest.
Your first step is to choose a payment method, whether it be credit cards, bank transfers, mobile apps like PayPal or Apple Pay or even cash at physical Bitcoin ATMs.
Each of these methods come with their own pros and cons.
Credit cards are accepted by most crypto platforms and make transactions much quicker. However, some platforms charge fees for credit card use, which can quickly stack up, and banks often flag or decline crypto purchases.
Mobile payment systems like Apple Pay and Google Pay are also among the easiest choices, though these systems typically link to a credit or debit card, so you could face the same fees and hurdles from your bank.
A third option is open banking, which transfers money directly from your account to your chosen crypto platform. It’s a highly secure method with lower fees than credit cards, but it can take longer than using a credit card and it’s not as widely available.
After choosing a payment method, it’s time to find a crypto platform that works for you.
Coinbase is a favorite for new investors, since it has solid security measures, low fees and an easy-to-use website. It does not offer margin or options trading, and only allows future trading on select coins.
Kraken is another good choice for beginners with low fees, though it also lacks the capability for options trading.
Crypto.com has reasonable fees and strong security measures, along with the ability to trade Bitcoin options and futures.
It’s likely better-suited for more advanced investors, since it only offers chat service and no phone calls to investors requiring assistance.
Gemini is another solid pick for more experienced investors, with advanced security measures. It has an even more bare-bones customer support system, offering only a request form.
With a chosen payment method and platform, you’re ready to invest in whichever crypto coins have caught your eye.
The final step is to decide where you want to store your cryptocurrency – in a hot or cold wallet.
A digital wallet, or hot wallet, remains connected to the internet at all times. While it’s more convenient and makes it easier to make transactions quickly, this type of wallet is also more vulnerable to cyber-attacks.
There are tons of digital wallets to choose from, like Best Wallet and Ledger. Several platforms, including Coinbase, Crypto.com and Kraken, also offer their own wallets.
You can also choose to store your newly-bought crypto offline, in what is known as a cold wallet. This provides extra security to your investments – but it’s all on you.
If you lose your wallet address, a unique string of letters and numbers that allows you to access your investments, you’ll have no way of getting your crypto back.
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