As the price of bitcoin (BTC) continues to rise in value, crypto enthusiasts are often on the hunt for the next big altcoin. Those digital assets can deliver tremendous returns. And while bitcoin is heralded for crushing the S&P 500 with its 1,000% return over the past five years, some altcoins gain more than 1,000% in just a few months.
The challenge for investors — as is often the case with investing in stocks — is finding the right opportunity among thousands of cryptocurrency options. While any asset has the potential to gain momentum and deliver captivating returns, some cryptos are more promising than others.
This guide will explore what you can look for in a cryptocurrency and how to find promising altcoins that can deliver impressive returns.
Spend time with crypto enthusiasts
Cryptocurrencies like dogecoin (DOGE) and shiba inu (SHIB) gained mainstream status after delivering tremendous returns for early investors. So if you’re searching for the next high-potential altocoin, you don’t want to hear about it from the mainstream media. By that time, most of the gains will have been realized, especially for coins and tokens that end up in pump-and-dump patterns.
Instead, focus more on spending time with early adopters and insiders than waiting for the media to inform you about which digital assets are gaining popularity. You can find online communities through X, Reddit (for example, a subreddit like r/CryptoMoonShots) and other social networks that regularly discuss cryptocurrencies. Participating in these groups can help you find under-the-radar altcoins before they become big.
Monitor a cryptocurrency’s sentiment
Sentiment is a driving force for most cryptocurrencies, especially meme coins like pepe (PEPE). You should gauge how social media users feel about any cryptocurrency before starting a position. However, you shouldn’t only monitor sentiment toward an individual crypto if you are a crypto trader.
Many cryptos have some correlation with the stock market. For instance, bitcoin tends to go up or down alongside the tech-heavy Nasdaq. It’s rare to see bitcoin enjoy a rally while the Nasdaq is in a prolonged downturn.
Investors can also see this trend with the aforementioned example PEPE. This cryptocurrency almost doubled within one week of President Donald Trump winning the election. Many stocks and digital assets soared in the lead up to Trump’s inauguration as investors were excited about the deregulatory promises he made during his campaign.
Pepe also plummeted near the end of January, which coincided with the DeepSeek news that rattled AI stocks. The meme coin continued to plunge amid tariffs, but then surged from its low in early April, just like stocks did. Since then, it gained more than 50%, which has coincided with the stock market’s recovery.
It’s good to keep this in mind as you search for high-potential altcoins. Bullish news for the stock market will make investors more excited and can result in outsized short-term gains.
Look for crypto presales
Crypto presales can present great opportunities for investors. They allow you to buy new altcoins at a discount while developers of those projects gain market share and momentum. However, not all presales are successful. And because they take place before a project is fully public or proven, presales can end up as failed launches or even turn out to be scams.
One way to avoid those situations is by taking advantage of platforms that offer vetted projects. Digital wallets such as MetaMask, Trust Wallet or Best Wallet — on top of storing the private keys to your crypto — allow you to interact with applications and services built on the decentralized internet. Best Wallet, for example, offers users an integrated launchpad while also featuring full anonymity and no KYC while supporting thousands of cryptos on popular blockchains.
Once you have identified a presale that checks the right boxes, you’ll need to ensure that your wallet supports its blockchain. If it does, and after you’ve purchased your coins or tokens, you should stay connected with the project’s community after investing. Updates on launch dates, exchange listings and token distributions often happen in real time through Discord or Telegram channels. Staying in the loop can help you make informed decisions post-sale.
Use a crypto screener
Crypto screening platforms like TradingView and CoinGecko let you filter cryptocurrencies based on their market cap, volume, price changes, category and other details. Using filters can weed out cryptocurrencies that have less potential.
If you want to find the next big altcoin, you will have to search for altcoins with smaller market caps. Although bitcoin remains the leading crypto, you’re unlikely to get a 1,000% return from BTC over the next five years. Bitcoin has a $2 trillion market cap, and expecting it to have a $20 trillion market cap in five years is wishful thinking.
But it’s a lot easier for an altcoin with a $10 million market cap to reach $100 million in the next five years. This big leap doesn’t require as much capital or effort. Screeners can help you eliminate the big market cap cryptos as well as the smaller cryptos that haven’t done well in recent weeks. You can also filter for utility so you know the crypto project’s objective and viability.
Check crypto platforms
Using crypto platforms like CoinMarketCap and CoinGecko can help you to find promising cryptocurrencies. These platforms can help you discover emerging crypto projects and offer insights into new cryptos before they become mainstream.
For instance, a few crypto platforms list upcoming initial coin offerings (ICOs). Some of these coin offerings generate plenty of initial traction and present an opportunity for quick gains. You can use these platforms to conduct additional research on digital assets that you hear about on social media. Then you can verify if it makes sense to buy an altcoin that you hear about or if you should put your capital into another asset.
Use artificial intelligence tools like ChatGPT and Grok
Artificial intelligence (AI) tools make it easier to find the right information if you know how to use them. For example, you can ask one of these AI tools to list 10 altcoins with market caps below $100 million that have year-to-date gains.
If you want more than 10 altcoin recommendations, as the next AI prompt, you can say “10 more please.” After that, though, it’s up to you to conduct your own due diligence. But AI tools can save you a lot of time and are a great way to discover new or under-the-radar altcoins that have high-growth potential.
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