The year 2021 was remarkable for most cryptocurrencies as the price of the coins went over the roof.
This explosion in the previous year has led to many individuals seeking to buy the next coin that will give them high profits in the coming years.
But, before getting into the potential coins that will most likely be the next 'bitcoin' tomorrow, it is great to take a step back and consider the history of cryptocurrency, especially the rise and fall pattern of the coins, before jumping on one.
Before the explosion of cryptocurrency in the previous year, the digital asset has been around as far back as 2009.
From the point of its launch and implementation, one constant factor attributed to cryptocurrency is its volatility.
The volatility of cryptocurrency is one of the sole factors responsible for its rise and fall. Although volatility affects all coins, some safe coins have higher stability than others.
The lesser stablecoins are often referred to as 'shit coins.'
Another responsible factor for the rise and fall of cryptocurrency is the demand and supply.
Similar to what we have for fiat currency – conventional money like dollars – demand and supply affect the economy, although in a limited amount compared to that of cryptocurrencies.
Fiat currencies are backed by government resources which provide substantial stability for the currency as well as the confidence of the users.
Cryptocurrency operates as a decentralized currency, which reduces the coin's stability, including increased pressure on supply and demand.
When there is a fall in the value of cryptocurrency, it is usually because the supply is higher than the demand.
This is because the digital coin's value responds sharply to a change in supply and demand, which is associated with many factors and various sources.
Here is another explanation to the concept of rising coins.
Coins can quickly rise and gain immense value based on popularity and increased awareness of the coin, ultimately leading to the high demand for the coin.
A typical example of this can be seen with Bitcoin.
The coin's popularity increased in 2021, leading to its high demand and consequentially the high value it recorded in the year.
Other coins like the Dogecoin also experienced the same fate due to its popularity gained from the famous tech billionaire – Elon Musk.
Despite the many coins that were highlighted to succeed last year and in recent times, several other coins still fell flat.
Coins like Cardono and Uniswap were among the coins that lost large values leading to a huge loss for investors that invested in the coin.
The key to preventing huge financial losses is to select rising coins that have the potential of rising rather than crashing. Here are some features to look out for when identifying rising coins.