With the meteoric rise in the crypto market, the largest challenge for investors and traders isn’t so much getting into the market—it’s finding altcoins before they explode. Everyone’s searching for the next 100x coin, but few ever do. Why? Because they don’t know where to go or what to look for.
This tutorial is my actual process—how I discover altcoins BEFORE they blow up—utilizing four formidable tools that have helped me and my group make serious profits on pre-moon investments such as RNDR (Render), which I got in at a mere $0.57 and watched shoot up to more than $7.
In this article, I’ll take you through my tried-and-tested approach to discovering altcoins before they blow up with data-driven tools, strategic thinking, and a bit of research. These methods can provide you with an advantage in the altcoin market and possibly assist you in catching huge gains before the masses.
Applying Market Trends to Foresee the Next Big Move
The Power of Narrative
One of the most important aspects of how I discover altcoins BEFORE they blow up is paying attention to the overall story in tech and crypto. Artificial Intelligence (AI) has recently been a huge trend, with players like Nvidia making headlines.
Seeing this, I searched for crypto projects heavily invested in AI. That brought me to Render (RNDR), one of the leading names in AI-oriented crypto. I recommended this choice to my private Discord community, and we’ve all experienced incredible gains since.
If Bitcoin keeps going up, RNDR might easily break through $15 in the near term.
Tool 1: Bitcoin Rainbow Chart
Before investing in any altcoin, you should have an idea of where the overall crypto market is. To determine that, I rely on a surprisingly good but simple tool: the Bitcoin Rainbow Chart.
The chart consists of nine color-coded regions from “Fire Sale” to “Maximum Bubble Territory.” With its whimsical appearance, this tool has nonetheless shown to be incredibly reliable in the long run.
- When Bitcoin is in the red zones (bubble territory), prices usually tank shortly thereafter.
- When it drops to the blue zones (accumulate/buy), it often rebounds.
Right now, Bitcoin is in the “Still Cheap” zone—suggesting that we’re in a solid accumulation phase. Combined with the upcoming Bitcoin halving, history tells us this is an ideal time to prepare for the next bull run.
This foundational analysis sets the stage for identifying the altcoins ready to surge next.
Tool 2: Altcoin Season Index
Just because Bitcoin is popular doesn’t necessarily mean you should be filling up on altcoins. That’s why the Altcoin Season Index is my second favorite tool in the methodology of how I discover altcoins BEFORE they skyrocket.
This index indicates whether it’s “Bitcoin season” or “Altcoin season” based on market dynamics.
- If the index is low: Bitcoin is performing better than altcoins.
- If the index is on the higher side: Altcoins are on fire, and it is time to invest.
This information enables you to position your altcoin entries when the likelihood of explosive returns is at its peak. Currently, if this index is on the rise, that’s your signal to begin doing your altcoin research.
Tool 3: DeFiLlama and TVL Metrics
After the market is favorable, it’s time to sift through altcoins. One of the strongest metrics I employ is Total Value Locked (TVL)—information that’s easily accessible on DeFiLlama.
Total Value Locked measures the amount of capital locked into a particular DeFi project. Here’s how I apply it:
- Find two altcoins that have similar TVL.
- Then, compare their market caps.
For instance:
- Aura boasts a $633 million TVL and market cap of $41 million.
- Stader’s TVL is the same, but it boasts a market cap of only $30 million.
The important realization? For having the same TVL, Stader offers more bang for the buck. The difference often represents undervalued coins with more upside potential.
This is perhaps the most actionable step in how I discover altcoins BEFORE they blow up—locating undervalued projects with solid utility and user base.
Tool 4: Arkham Intelligence
Here’s the icing on the cake: Arkham, a tool that allows you to monitor public blockchain wallets in real-time. Yeah, you can literally see what big traders, hedge funds, and developers like Vitalik Buterin are buying or selling.
How it works:
- Search by name or wallet.
- View their entire transaction history.
- See their live portfolio.
Why is this useful?
- Because if a person like Vitalik begins to stock up on a lesser-known altcoin, he probably knows something the public doesn’t.
- This type of insider-like insight is a gigantic advantage when trying to determine which altcoins will blow up next.
- You can also track top Twitter traders or recognized whale accounts and observe exactly what they’re doing.
Putting It All Together
Separately, each of these tools can provide you with some insight into the market. But when you bring all four together—narrative strength, market timing, value metrics, and whale tracking—you have a solid system for finding high-potential coins before they hit the mainstream.
In summary, here’s how I discover altcoins BEFORE they blow up:
- Watch the narrative – Spot emerging trends such as AI or gaming.
- Use Bitcoin Rainbow Chart – Learn when to enter the market.
- Verify Altcoin Season Index – Buy altcoins only when it’s their season.
- Immerse yourself in DeFiLlama TVL – Look for undervalued tokens with high total value locked.
- Monitor wallets with Arkham – Take cues from good traders and insiders.
Final Thoughts
The distinction between catching a 2x vs. a 100x gain usually boils down to preparation and equipment. With the steps outlined above, you now know precisely how I discover altcoins BEFORE they blow up, and how you can too.
Utilize these tools not only to pursue pumps, but to create a sound, smart crypto investing strategy.
If you like more information such as this, I also send a free weekly newsletter twice each week where I discuss my top altcoin plays and market observations. Subscribe and stay ahead of the next break.
Welcome to the future of trading crypto—let’s uncover those altcoin gems before everyone else.