The Newcomers Guide To Finding Crypto’s Next Big Token

Cryptocurrency has come a long way since its humble beginnings, from Bitcoin’s electronic cash inception to today’s multi-trillion-dollar asset class. Since the end of 2020, BTC prices have only momentarily dipped below $30,000 a couple of times, having otherwise found support from a large inflow of institutions and speculative retail investors. Meanwhile, there are dozens of vibrant blockchain ecosystems, each one boasting an array of potential investment opportunities, from gaming and NFTs to decentralized finance, DAOs, and plenty more besides. 

While all this is dizzying enough for those who’ve been around crypto for a while, it can be an intimidating prospect for newcomers. People come to crypto for the opportunity of outsize gains compared to the traditional financial markets, but where to start? 

Getting Onboard and Starting a Portfolio

The typical entry point for any newcomer to crypto – no matter how big or small the investment – is to onboard to Bitcoin or one of the major altcoins like ETH via an exchange. While centralized exchanges still tend to get a bad rap from both regulators and elders of the cryptocurrency community alike, the fact is that in 2022, using a major exchange like Coinbase, Kraken, or Gemini isn’t inherently more risky than engaging in any other online financial transaction. 

However, while speculating on the value of Bitcoin is a very soft introduction to crypto, the days when Bitcoin would offer triple or even quadruple-digit returns appear to be behind us – at least for now. Many traders tend to look further down the cryptocurrency ranking tables for altcoins that can deliver a better return on investment. 

This strategy can bear juicier fruit than simply investing in Bitcoin or Ethereum. For example, many major platform tokens have provided outsized returns over the last year. In the twelve months leading up to April 2022, NEAR Protocol (NEAR) has risen over 165%, Avalanche  (AVAX) by over 200%, and Solana (SOL) has increased by a whopping 1,268%. By way of comparison, ETH has increased by around 67% in the same period, while BTC has gone down in price compared to this time last year. 

However, on top of these platforms are the dApp layers, offering a rich choice of different tokens with the alluring opportunity of getting in on the ground of the next up-and-coming crypto startup. 

Becoming a Crypto Startup Investor

One of the truly great things about the crypto space is that – in theory, at least – anyone with an internet connection can become a startup investor. It’s a concept that’s launched a thousand tokens – and then many thousands more. But while investing in a token launch can be an exciting opportunity, it can also be fraught with pitfalls. Fraud and token scams are one obvious example, so any newcomer should take the time to read up on the telltale signs of a potentially doomed investment. 

There’s also the notorious volatility in new tokens – the opportunity for outsized gains also comes with the risk of losses. 

However, perhaps the biggest challenge facing newcomers to this space is that the barriers to entry have been erected extraordinarily high. If someone wants to invest in a new token, they usually need a huge initial stake to be able to participate in an initial token offering via a decentralized exchange. However, if they don’t have the stake and wait until the token hits exchanges, the price has already been inflated so high that the opportunity to benefit from early gains has been and gone. 

UpLift DAO is building a cross-chain protocol to create a more equitable and open way for anyone to participate in crypto startup investing. UpLift operates as a decentralized accelerator, launchpad, and community with a DAO based around its native LIFT token. Projects undergo a multi-stage project starting with exposure to established early-stage VC investors and the initial infrastructure the project needs to begin development. As it moves towards the token launch, UpLift supports the project with marketing and publicity via VCs, influencers, and cross-chain DEX listings. 

Removing Barriers to Entry

Most IDOs operate tiered systems preventing all but the biggest investors from benefiting from the biggest token distribution. UpLift doesn’t impose any such restrictions, meaning that projects can attract a diverse range of participants and ensure that their token is fairly distributed without undue influence from a few capricious whales. Furthermore, this approach also has benefits for participants. By investing in a highly distributed token, there’s a lower risk that the token price could plummet if a whale dumps their holdings. 

UpLift also operates as a DAO, meaning that holders of its LIFT token can participate in platform governance and benefit from other elements of the tokenomic model, such as community rewards and token buybacks. 

It’s definitely not too late to get into crypto. It’s true that the gains from BTC and the major alts may have become somewhat tempered by mainstream adoption. However, the open, decentralized nature of blockchain means that with the right protocols in place, anyone can get in on the ground of the next crypto unicorn.