The secrets of an expert to detect cryptocurrencies that will grow like foam

Although luck is key when it comes to getting rich by investing, experts know what elements are differentiators when it comes to knowing whether or not a currency can be a success in the future. These are Yubo Ruan’s tips.

The network is full of testimonials from people who have become millionaires by investing, at the right time, in an unknown cryptocurrency. After putting 1,000 euros into it, that token was revalued by 10,000% and ready, to live on the rents.

This situation surely sounds familiar to you, since every two by three characters with this story fill the network with their knowledge and experience, when in truth it has been just a stroke of luck that they want to sell as knowledge.

It is the good thing about the justifications to the past, that it is always easy to give him a story and an explanation that fits the story. Although it is clearly a lie.

Luckily the case of Yubo Ruan is not one of those. If not, we are dealing with an entrepreneur who, throughout his life, has known where to put the money and what to do to decide whether to invest or not. Our colleagues from Business Insider brought the story complete.

The Chinese entrepreneur, explains Ruan himself, tries to identify projects with long-term potential, focusing on three factors: network effects, reasonable valuation and quality of the founder.

The network effect refers to the idea that the greater the number of users who join a network, the more value that network accumulates.. Facebook, Instagram and TikTok illustrate the power of network effects.

Just like major cryptocurrencies like bitcoin and ethereum, they too have become more valuable as more people join their networks.

Then we have the second point: Ruan likes to invest in projects with valuations that may seem expensive. Instead of focusing on cheap assets, he believes that higher (but reasonable) valuations can be a sign that projects have gained investor confidence.

And, finally, it looks at the creator of the token, studying its history and the work it has done before. For example, polkadot founder Gavin Wood was involved in the launch of ethereum, where most decentralized finance activities take place today.

“I put at least 40% of the weight on evaluating who the founder is and what they have done previously“Ruan explains.”We think that entrepreneurs who have done a great job before are likely to continue to create better products in the long run.“.

With these three steps, Yubo Ruan has managed to make a fortune with coins like Solana or Polkadot, where he invested millions of dollars when they were still worth almost nothing. But of course, to invest six figures you have to have them.