How to choose a profitable cryptocurrency investment?

There are certain things to look for when investing in a coin, it is like choosing a path but before you blindly choose you have the choice to prepare yourself in any case. Possibilities can include a good outcome or a bad one, so choosing wisely is important.

It can be hard to find the right coin because there are so many, and they can be very volatile in prices. Looking at the list if coins in a market while on an exchange can be overwhelming to say the least. There is all kinds of things happening on your screen and you might not know where to start.

Volume

Preferably in the last 24 hours, what I like to do is look for a coin with a lot of volume. To do this use your exchanges to your advantage, most will have a tab that says 24hr change% or something like that. What it does for you is organize the highest volume to the lowest volume in whatever currency your trading in.

The reason that I look for volume first whenever I am trying to find a profitable coin to invest in is because it is the easiest indicator of either high interest or low interest in a coin. If a coin has high volume increase in the last 24hrs I will look into it more and try to find out why. Another reason why volume is important is because it allows you to close trades quicker.

Is there a use case?

Some people might not make a big deal out of a coin not being used for anything, but I can't be apart of a useless project even if I am only trying to trade it tomorrow. In my opinion if a coin is very weak and only has a use case to be traded I don't think it has a chance to make it to tomorrow and see a positive future. In other words it is not worth it to get involved in something just because you think it will make you a profit. Check out it's use case and use your common skills to decide if it is a useless coin or not.

Find a use case because you can know that if all else fails you can say that at least it had a real use case. A real use case is just something that can be proven in an example and makes sense.

Chart patterns

I don't always agree with technical analysis but I do find it helpful to use when you are investing in short term situations.

I use chart patterns to determine a downtrend and when an uptrend will start. This way I can buy only when I know there will be the next price increase.

Indicators

RSI
MACD
MAs
Trendlines
Ichimoku clouds
Fib retracements

These are all indicators that help you draw a chart and analyze any coin to predict the next price increase. It is not easy to analyze charts and it takes a lot of time spent learning and practising how to use chart indicators.

News

Is there any news? A mainnet launch? Partnerships? News always seems to be the easiest way to predict price movement. The only thing is that news isn't everyday, at least not for every coin.

Usually after I analyze just to make sure before I buy I look for news about the coin that I think could impact it. Coins follow the news so if you can find positive news about a coin that is going to likely impact it I would buy and sell the fomo.

I use a website called coinmarketcal to find news about coins, but there are other websites that have actual articles and sometimes they help me find a profitable coin to invest in.

Hopefully this will help you learn how to find a profitable coin to invest in. If you liked it and found it helpful leave a comment and follow. Also remember that there are other ways people will try to find a profitable coin, these are just mine.

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