Over the past few months, the cryptocurrency markets have been growing at a rapid pace. Just a few weeks ago, the market passed $1 Trillion in value for the first time ever, and retail interest seems to increase once again.

Are we back at 2017? Not quite! Today, the scene is much more regulated and the opportunities to make money are easier to spot than they once were. This is especially true when picking new cryptocurrencies to invest in. Nowadays, promising projects that are listed on popular exchanges need to have stronger teams, solid fundamentals, and an unparalleled work ethic.

We wrote this article to help you filter through the noise and find the most promising (and undervalued) cryptocurrencies. Note that everything you are about to read does not constitute financial advice and is presented for research purposes only. So, without further ado, let’s get started.

Criteria for strong investment options

Before we present out list, it is important to understand the factors that affect how we choose new cryptocurrencies to invest in. There are certain criteria one needs to keep in mind. These will help you navigate through coins with no potential and discover those coins that can help you make the most from your investment.

Success factor #1 – Strong fundamentals

Nowadays, the average investor is way more educated and cautious than he was back in 2017. While there are new “waves” of retail interest slowly coming into the scene, the majority of people have at least some idea of the things they need to look at when making an investment. Coins that are fundamentally strong have more potential to survive in the future, as their technology is important for future applications. To understand this better make sure to read the whitepapers of projects you are interested in and maintain a high-level understanding of the industry’s direction.

Success factor #2 – Growing fan base

The price of a coin is determined by supply and demand. While there are many tricks that companies implement to increase investor’s FOMO (like coinburns, supply shocks, etc.) not much is done to accommodate increasing demand. In other words, only a few projects really pay attention to growing a strong fan base of educated investors who are willing to hold onto their coins long enough for the price to grow. These are companies that not only are strong fundamentally but capitalize on communication channels and social media.

Success factor #3 – Haven’t “pumped” before

Many experts assume that coins which haven’t been tested in parabolic market conditions have a stronger potential to experience massive growth. As there are no prior support/resistance levels it is hard to determine which price point is the peak, and buyers usually far exceed expectations. Ideally, you should look for established coins that were introduced to the market as early as 2018, abiding by all the points mentioned in this chapter.

Bonus factor – DeFi projects

Decentralized Finance is become increasingly important but is still overlooked by the public. The crypto market as a whole is worth more than $1 Trillion dollars. Only $14 Billion of that is locked in DeFi projects, and the technology is expected to grow in 2021, due to the instability of the global economy. Therefore, focusing on fundamentally strong DeFi projects might be your best bet to make the highest amount of profit.

Best new cryptocurrencies to invest in

Based on the criteria presented above, we have compiled a list of new cryptocurrencies to buy and hold onto for the upcoming bull market. Let’s take a look at them.

Best new cryptocurrency to invest in – Chainlink (LINK)

Read the whitepaper

Chainlink is quickly becoming one of the most important cryptocurrencies in the industry. The project is known as an Oracle Network and is used to empower smart contracts. This is done by accessing real-world data and automatically translating them into “language” that smart contracts understand and are able to apply.

Why Chainlink is a good investment

The fundamentals of Chainlink have made the project imperative to the Ethereum network, which is used to build decentralized applications (dApps). It is also considered to be one of the most important projects for the growth of decentralized exchanges and DeFi in general.

Adding to that, LINK has one of the fastest-growing fan bases known as LINK Marines and has attracted the attention of celebrities on a global scale, including Dave Portnoy from Barstool Sports.

While the coin did experience massive growth in 2020 (going from $1 to $20), one could say that it has not yet experienced parabolic market conditions. Some believe that, when the altcoin markets decide to enter into a bull run, LINK could grow to $1000 dollars or more. Fundamentally speaking, it has the potential to do so.

Best cryptocurrency to buy now – Polkadot (DOT)

Read the whitepaper

You may or may not have noticed that Polkadot popped out of nowhere, claiming a position in the top 5 best coins by market capitalization. But what exactly is Polkadot?

Created by Ethereum co-founder Gavin Wood, the Polkadot project aims to allow individuals to build their own blockchains, similar to the way Ethereum allows people to build dApps. This makes the project both fundamentally strong and exciting new technology, as it allows more people to build decentralized projects.

The following video explains how Polkadot’s Substrate works, and how it could revolutionalize the way developers build blockchains:

Over the past few weeks, we saw its coins DOT nearly quadruple in value, growing from $5 per coin to over $18.

Why Polkadot is a good investment

Polkadot ticks all the boxes. It has very strong fundamentals and has been developing behind the scenes for several years. It also has a strong team, a valuable and needed product, as well as a lot of room for improvement and growth.

Polkadot is one more foundational project that will enable more people to build decentralized solutions without relying on third parties. As such it is a long-term bet for the improvement of DeFi apps as well.

Aside from the above, DOT receives strong indirect marketing for upcoming retail interest, due to its placing in the top 5 on CoinMarketCap.

Best cheap cryptocurrency to invest in – Matic Network (MATIC)

Matic Network provides scalability solutions for decentralized applications on the Ethereum network through a 2nd layer sidechain based on PoS. While this may sound quite technical it illustrates that Matic fits all of the criteria described above.

But that is not the only reason we chose MATIC. Apart from fundamental strength, it is important to look at factors that could positively affect the market sentiment.

Why MATIC is a good investment

  • The popular cryptocurrency had its IEO on Binance during the second quarter of 2019, and is thus backed by the exchange-giant.
  • The coin is already up more than 10x its IEO price in USD value but has yet to go through a parabolic growth phase. It is still priced at $0,03, which leaves lots of room for growth.
  • The coin has survived heavy FUD (inaccurate claims), that were somewhat detrimental to the coin’s natural growth pattern.
  • MATIC is one of the most promising crypto projects of India, a country which has imposed a banking ban on cryptocurrencies to this day. Early last year the country temporarily lifted the ban for a short period of time, which resulted in a massive price appreciation for all India-based crypto projects. We expect the ban to be lifted once again in a short period of time, which would signalize the start of a parabolic price action for MATIC and its peers.

Exchange-based new cryptocurrencies to buy – Wazir X (WRX)

Read the whitepaper

Wazir X is the largest cryptocurrency exchange of India, and was recently acquired by Binance. Its native token, WRX fuels all activities on the platform, and was distributed to Binance users through an IEO in the first quarter of 2020. In short, it is an exchange-based token, meaning that its success depends on the platform’s ability to scale and grow an audience.

Shortly after the WRX distribution to Binance users, India temporarily lifted its cryptocurrency banking ban, allowing users to buy and sell crypto from the comfort of their bank accounts. In this brief period of time, the coin experienced a massive growth in popularity before later returning to its prior levels after the ban was reimposed.

Why you should invest in Wazir X

India’s long-term banking ban on crypto has resulted in more than 1,3 billion individuals having extremely limited access to cryptocurrency.

While the platform currently acts as an escrow platform (connecting individual buyers and sellers) there is a lot of untapped potential that could be realized in the months ahead. Once the banking ban is lifted permanently, we could experience a massive surge in the platform’s popularity, since it is the only INR onramp globally (INR = India’s native FIAT currency). 

Note that WRX, the native token of the platform, has many similarities to BNB. In short, it fuels all the activities on the platform and offers several benefits to its holders. Hence, those who maintain an optimistic viewpoint believe that the coin is posed to grow as fast as BNB, given that cryptocurrency trading will soon be legalized in the country. If this happens, WRX will be proven to be one of the best new cryptocurrencies to invest in.

CertiK (CTK)

Read the Whitepaper

We close our list of new cryptocurrencies to invest in with one of the “underdogs” that could gain some serious recognition in the months ahead. We are talking about CertiK Chain, one of the latest Binance Launchpad projects.

CertiK Chain (CTK) is a cryptocurrency that aims to improve the security of decentralized apps though security oracles and real-time security checks. It is also the first-ever solution for decintralized financial reimbursement of lost or stolen crypto assets.

Why you should invest in CertiK

  • CTK has been underperforming in the bullish market conditions. It was introduced to the market at a pricepoint of $1.95 and is currently trading at $1.15
  • The project has strong fundamentals and attempts to improve the DeFi space, while it receives full backing (and an exchange listing) from Binance.
  • Like many other PoS tokens, users can stake their coins and earn passive income, and annual returns increase when less users participate in the process.

Keeping the above in mind, CTK has a lot of potential for accelerated price growth, and is this one of the best new cryptocurrencies to buy.

Wrapping up

You should now have a better understanding of the process you need to go through when looking for new cryptocurrencies to invest in. To summarize, here are our favourite options for the upcoming year:

  • Chainlink (LINK)
  • Polkadot (DOT)
  • Matic Network (MATIC)
  • WazirX (WRX)
  • Certik (CTK)

We recommend researching each of the above options further by reading their whitepaper and joining their communication channels. Once you feel comfortable to make an investment, consider a small allocation of funds, as new projects are always risky.