Quote from: MicroGuy on January 31, 2014, 09:33:27 PM

In my opinion, you want to buy/mine a coin that has yet to be widely discovered.

Once the media and the whole world has jumped in, there will be less upside potential. The trick is to find the coin before the massive run up in price.

How to find the next winner:

Take a look at the list of coins on coinmarketcap.com and look for those that are undervalued. The trick is to find coins that have a disconnect between underlying fundamentals and market price. Do your homework and realize that coin value is derived from; coin name, size and quality of community, and developer genius.

Then read, study, and research, and find the coins that the markets have not yet found.

And I'll disagree that crypto currency follows the standard economics of Fiat currency. What you described is exactly how you would invest in the stock market. You'd consider which companies have a low marketcap and have a product that could cause that marketcap to push significantly higher. With Crypto currencies you have no such product, you only have FUD with no intrinsic value. Crypt-Currencies are a lot closer to the 2001 dot-com crash than they are to the current version of the stock market.

The most important question you can ask yourself when buying coins is "do I believe in the future the internet hype of this coin will cause its value to sky rocket"? Yes you are right, with small marketcap coins you can get a lot, and if they do take off... jackpot. But it's likely those coins wont take off. Best bet for coins taking off is probably within the first couple months of their life.

Coins I currently like a lot and would like to own as much as I can
  DOGE
  MoonCoin
  TIPS

I even think some older coins have good buy value at the moment... Coins like
  DMD
  GLX

So am I an expert at this? No. no one is. If you can model the irrational nature of this, then I'd very much like to see your algorithm. Im working on some myself, but in no way think I am an expert.