As the crypto market goes through a rebirth of sorts, this is the right time for altcoins to make their comeback. As all of the major cryptocurrencies are either falling or stagnating, altcoins can finally compete on fairgrounds and bring in plenty of investors.
But when it comes to finding the next big altcoin that is going to get you rich, it can be close to impossible. The worst part about making the wrong investment is that it can eventually lead you down a path of not getting what you really want.
Fortunately, If there is one thing that the crypto market is, it is supportive, which is why the founder of BitMEX has offered his advice on how to find the next big altcoin. Through his years of experience in the crypto market, he has a keen eye for opportunities that could grow into something special.
Looking at Survivorship Bias
In an interview, BitMEX founder really went into detail about all of the ways that people can really start making smarter investments in an altcoin. More specifically, he is teaching people how to look out for the most profitable altcoin that people can find.
The first thing that he emphasizes is looking at survivability bias and trying to find out if an altcoin will survive. Remember, thinking that an altcoin will just burst through the scene and will instantly reach its potential is wishful thinking.
Instead, you should first think about if an altcoin will likely survive in the current climate or not. This is a very important thing to decide on your own since you need to look at the charts and data to see if you can truly make it.
Trying to Make the Rebound
When looking at the profitability of an altcoin, you really don’t want to look at if it can reach its true or previous potential. Suppose a token started at 100 and dropped down to 0. If you buy at 0 and it increases by 10x, that’s not a bad pull.
Sure, it is nowhere near what it was originally, but that doesn’t mean that you don’t make a hefty profit. So if things go well, you can easily rack up impressive profits from your altcoins. And even if they can look a little small by comparison, you can build your way up from there.
It’s Really Impossible to Know
Despite having years of experience in the field, BitMEX CEO still can’t tell if this is about as low as it goes for cryptocurrencies. But even if you can’t find out when certain coins are going to the moon, you can find which ones will. So it usually comes down to the numbers and patience. As long as investors have both, Hayes thinks that they’re golden.