In the ever-expanding world of cryptocurrencies, it can be challenging to navigate the vast array of options available. If you’re new to the market or unsure which metrics to use for your research, following the strategies of experienced buyers can provide valuable insights.
In this article, we will explore a technique for identifying trending coins among experienced buyers and discuss a tool that can help minimize risk when exploring new altcoins.
Using Moralis Money for Research:
Moralis Money is a powerful tool for identifying promising altcoins early on and reducing the risk of falling victim to scams. By leveraging this tool’s functionalities, you can gain valuable insights into which coins are gaining traction among experienced buyers. Let’s dive into two different approaches for finding these trending coins.
- Predefined Search Query: Coins Below 500K Market Cap Bought by Experienced Buyers
Moralis Money offers a predefined search query to identify coins with a market cap below 500K that are being bought by experienced buyers. While market cap is considered in this query, it may not be the most critical factor when evaluating coins at an early stage. Nevertheless, let’s explore the results.
By applying this search query, you will receive a list of coins that meet the specified criteria, including a security score above 80 and experienced buyers’ increased activity by at least 10% in the current month. This list provides an excellent starting point for further research.
However, it’s important to conduct a comprehensive analysis of each coin on the list. Consider factors such as the coin’s age, market cap, liquidity, and holders. Analyze the price charts and identify any patterns or trends that could indicate potential future movements. Additionally, evaluate the distribution of token holders to ensure that a small group doesn’t hold a disproportionate amount of tokens, which could be a red flag.
- Customized Search Query: Experienced Buyers Increased by 500 and Experienced Net Buyers Increased by 300
Another approach is to customize your search query to identify coins with a significant increase in experienced buyers. By specifying that experienced buyers should have increased by 500 and experienced net buyers by 300 in the current week, you can discover coins that have recently attracted attention from knowledgeable investors.
To add an extra layer of safety, consider adding a security metric. Set a minimum score of 50 or higher to filter out coins that may have concerning smart contract functions, questionable ownership, or other potential risks.
By combining these search criteria, you can generate a list of coins that are gaining attention from experienced buyers while prioritizing security. However, it’s crucial to conduct thorough due diligence and not solely rely on these metrics.
Case Study: Trust Coin (Example Coin)
Let’s take a closer look at one of the coins identified using the customized search query. Trust Coin is a relatively new coin with increasing interest from experienced buyers, with over 2,000 experienced buyers and 9,000 experienced net buyers in the current week.
Analyzing the price chart, we can see that Trust Coin has experienced significant growth and has recently retraced to a potential support area. This retracement presents a possible buying opportunity, and if Trust Coin can break its previous all-time high, it may continue its upward trajectory.
Examining Trust Coin’s social metrics, we find a moderate number of followers, which could indicate a level of community support. However, it’s essential to conduct further research and evaluate other factors before making an investment decision.
Identifying which cryptocurrencies experienced buyers are purchasing can be a valuable strategy for uncovering promising investment opportunities. By leveraging tools like Moralis Money and customizing search queries based on specific criteria, you can gain insights into coins that are gaining traction among experienced investors.
However, it’s crucial to remember that these metrics are just a starting point. Conduct thorough research, analyze price charts, evaluate social metrics, and consider additional indicators like moving averages, RSI, and stochastic oscillators. Furthermore, always exercise caution and make informed investment decisions based on your own risk tolerance and financial goals.
Remember, the cryptocurrency market is highly volatile, and it’s advisable to consult with financial professionals before making any investment decisions.
This article is based on this video by the Moralis Money team: