How to Find the Next Crypto Unicorn

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

By Voyager's Charlotte Haughney-Siller, provided exclusively to Benzinga Cryptocurrency.

You know how to analyze the stock market, but what about crypto? How can you tell if a digital asset is worth investing in? After all, those early investors in Bitcoin all started somewhere. 

Crypto may seem like a new language, but many of the same ways you analyze the traditional market can still apply to your crypto investing strategy.

Not as Hard as Finding the Real Thing

The upside is, crypto unicorns aren’t a myth, and you can actually make an excellent crypto investment by DYOR or “doing your own research.” There are ways to navigate the crypto market consciously and thoughtfully that can help you make the right investment choice for you.

Analysis is Fundamental

Whether it’s stocks, industry trends, or cryptocurrencies, everyone wants to know the answer to a very important question: How do you find the next big thing?

That’s where fundamental analysis comes in.

Fundamental analysis is based on the concept that an asset could be undervalued or overvalued right now. Over time, though, speculators in the market will address that discrepancy, and the price will start to reflect the asset’s actual value. When performing fundamental analysis, investors decide if an asset is overvalued or undervalued, better informing their investments.

In turn, this also helps to identify assets that are potentially vastly undervalued; the unicorns that speculative investors are on the hunt for.

How to Find a Crypto Unicorn

The basics of fundamental analysis still apply to the nuances of crypto. With the inherent volatility of the crypto market, it can be hard to gauge a coin’s actual long-term value.

Before you trade, check the market stats. If you’re in the Voyager app, you can simply go to the market page and select any available crypto to see the details. You’ll want to ask yourself: 

1. What’s the background and purpose? 

If you’re interested in how a certain platform works or what its goals are for its currency, you can check out the white paper. This publication usually contains details on how the platform utilizes the network, its consensus protocol, its future plans for the coin, and more. Things like consensus protocol, such as Proof of Work or Proof of Stake, are very important features to consider because of their varying environmental impacts. With a world clamouring for more sustainability, it’s useful to know how evergreen an asset’s consensus protocol is. 

Note: Don’t be surprised if a network’s founder is anonymous, that’s kind of a thing in the crypto world (e.g. Satoshi Nakomoto, creator of Bitcoin).

2. What is the max supply of the crypto?

One of the largest differentiators between digital assets is in their supply schedule. For example, there are a finite number of Bitcoin in the world, which means that the asset’s value can be derived from its scarcity. The reason for this limit is due to supply and demand. If there is a limited supply of an asset and everyone wants one, the value stands to increase over time, which could make it a good long-term investment. 

3. What is the trading volume? 

Check the trading volume for the asset to make sure it’s moving. On the Voyager app, you can check a coin’s trading activity over the course of an hour, day, week, month or year to see whether trading activity is consistent or a pump. If an asset isn’t moving, it likely isn’t seeing a high level of interest from investors and may require more research to understand the reason.

4. What blockchain is it built on? 

For example, many DeFi platforms are built on the Ethereum network blockchain. Once you figure this out, you can look into transaction speeds, upcoming upgrades, and possible fees you may incur trading your crypto.

5. What about the blockchain itself? 

If you’re new to crypto, the idea of researching blockchain metrics probably sounds terrifying, but it’s not. All you really need to look at is the hashrate. The hashrate will indicate the speed of transactions on the blockchain, often measured in transactions-per-second, or TPS. For example, the oldest cryptocurrency, Bitcoin, has a TPS of 7, whereas a newer project, Solana, claims to have a TPS of 50,000!

With all of this in mind, you should have all the tools you need to make an informed decision on your investments. By analyzing the technology, protocol, and mission behind the crypto you want to invest in, you will be able to visualize its popularity and possible future in the crypto market.

Where to Find a Crypto Unicorn

Found a coin you want to trade in? Get started on Voyager. There are over 60 assets to choose from spanning from DeFI to stablecoins, smart contract assets and more. You can also find detailed research on these coins both in the app and on our NODE blog. 

Get $50 in Bitcoin when you sign up using code ZING on Voyager, deposit at least $100, and make your first trade. You can also earn up to 12% annual rewards when you maintain a minimum monthly average of any eligible asset in the app.

Ditch the butterfly net and get the Voyager app.

About Voyager

Voyager Digital Ltd. (CSE:   VYGR;   OTCQX:   VYGVF;   FRA:   UCD2) and its subsidiaries (“Voyager”), is one of the fastest-growing, publicly traded digital asset platforms in the United States. With over 60 digital assets, featuring a wide selection of altcoins, Voyager offers a secure way to trade using its easy-to-use mobile application. Voyager uniquely offers users the ability to earn annual rewards for maintaining a minimum balance in more than 30 different digital assets. Voyager was founded in 2018, to bring a more transparent and cost-efficient solution to trading in digital assets. Through its subsidiary Coinify ApS, Voyager provides digital asset payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com. Use code ZING during app sign up and get $50 in BTC after depositing $100 and making your first trade.

Voyager Cryptocurrency Risk Disclosure

Investment Advice Disclosure: This content is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for digital assets, sectors, or future price movement predictions.

Photo by Karolina Grabowska from Pexels

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.