How To Buy Crypto Gems In 2023
For those unfamiliar with the phrase "gem searching," envision blockchain as a cave where you uncover a lot of worthless stones and, every now and then, gems (tokens that can grow more than 100x). Thousands of tokens are released every day, largely on the Ethereum Blockchain and the Binance Smart Chain.
More than 99.9% are garbage, poorly constructed tokens with no purpose or a strong development team, or worse, tokens created by impostors to defraud you of your money, however there are a few projects that can easily exceed 100x ROI.
If you're prepared to take a big risk and don't want to waste time coding or don't have the technical skills necessary, there's good news: you can utilise several free tools to dramatically improve your chances when you buy crypto gems.
What Are Crypto Gems
COPYRIGHT_BER: Published on https://www.bernardine.com/buy-crypto-gems/ by Barbara Mitchell on 2022-04-07T03:15:06.979Z
Gems are low-cap currencies that are largely unknown but have a lot of promise or are severely discounted. Recognizing prospective gems is difficult since a gem has no specific characteristics other than the fact that it will ultimately pump.
When evaluating prospective diamonds, however, a few factors must be considered, including market size, volume, supply, and fundamentals.
To begin with, diamonds are currencies or tokens with modest market capitalizations that have yet to gain traction. As more individuals become aware of them, their trade volume tends to rise. Furthermore, they frequently employ scarcity mechanisms such as a monetary supply ceiling, such as Bitcoin, or a deflationary approach. This isn't a rigid rule, though, because certain gems are also inflationary.
The most valuable cryptocurrency on the market today were previously precious stones. When Bitcoin was initially released to the public, few people recognised it for the valuable asset that it was, but those that did were rewarded handsomely. When it comes to gem hunting, though, you must walk carefully and never skimp on your research. While certain coins can increase by 100 times in a few months, the majority of them will eventually plummet to zero.
How To Buy Crypto Gems
On decentralised exchanges, some cryptocurrencies, such as Gems, may only be acquired with another cryptocurrency. To acquire Gems, you must first purchase Ethereum (ETH), then use ETH to purchase Gems. And you'll need what's known as a self-custody wallet to do so. For citizens of the United States, here's how to do it with Coinbase Wallet.
Download Coinbase Wallet
To buy Gems, you'll need a self-custody wallet like Coinbase Wallet. A mobile app and a browser plugin are also available for Coinbase Wallet.
Choose A Coinbase Wallet Username
You'll need to pick a username as part of the Coinbase Wallet setup process. This username makes it simple for other Coinbase Wallet users to transfer you cryptocurrency. You may keep your username secret if you like, but you'll need it to log in.
Securely Store Your Recovery Phrase
You'll be issued a recovery phrase made up of 12 random words when you establish a new self-custody wallet. The recovery phrase is the key to your crypto, which means that anybody who knows it has access to it. Do not tell anyone your recovery phrase.
We highly advise writing these down on paper and securely preserving them, as well as using the Coinbase Wallet cloud backup tool.
Remember not to tell anyone your recovery phrase. You will never be asked for your recovery phrase by Coinbase. Coinbase will not be able to assist you if you forget your recovery phrase.
Understand And Plan For Ethereum Network Fees
Fees are determined by the amount of traffic on the network, the complexity of the transaction, and how quickly you want the transaction to be completed. Make a provision for fees in your budget.
Buy And Transfer ETH To Coinbase Wallet
To buy Ethereum, you'll need to open a Coinbase account if you don't already have one (ETH). Here's how to sign up for a Coinbase account and buy Ethereum (ETH). Depending on whether you're using the mobile app or the Chrome extension, the manner you send ETH to your Coinbase Wallet differs.
Use Your ETH To Buy Gems In The Trade Tab
You can buy Gems straight in the Coinbase Wallet app if you have it installed on your phone. Select the Coinbase Wallet App image. Then go to the "Trade" page, where you may exchange ETH for any Ethereum-based token (also known as "ERC-20 tokens"). Select Gems from the "choose coin" menu.
Enter the amount of ETH you want to trade in for Gems. Don't forget to budget for transaction costs. Confirm your purchase and complete the process by following the on-screen instructions.
Tap the "Convert" button if you're using the Coinbase Wallet plugin. Input the amount of ETH you'd want to swap for Gems and search for Gems. Don't forget to budget for transaction costs. Confirm your purchase and complete the process by following the on-screen instructions.
What To Look For In Crypto Gems
You may use a variety of variables to decide whether the risk/reward ratio of purchasing a certain coin is worthwhile. It's not necessary for a crypto gem to have all of them, but the more the merrier, and the better the probability of it turning out to be a crypto gem. The following are the most important:
The Team Behind The Coin
The best place to begin your study on a coin is to look at the entire project. Take a peek at the website and see who is behind it. Find out what other projects they've worked on, how competent they are of delivering on their commitments, how active they are on social media networks, and whether they take community ideas into account.
Examine how the currency fits into the crypto ecosystem, as well as potential use cases and the project's roadmap. While you're investigating the team, find out who the project's supporters are. Crypto venture capital firms frequently support many projects, and you may check to see if they are reliable and if any of the currencies they have previously backed have done well.
Price Of The Coin
The impact of a coin's pricing is a complicated issue because the effect is mostly attributable to human psychology. When consumers consider buying Bitcoin, the present price of a single coin is in the tens of thousands of dollars, owning a portion of a Bitcoin does not seem enticing.
When buying a coin worth fractions of a penny, though, it seems better to declare you possess tens of thousands of them and then imagine how much your treasure will be worth if the coin hits a cent or even a dollar. This is also why firms frequently divide their shares to appeal to ordinary investors.
However, with crypto, it is critical to consider a coin's entire market cap, which is computed by multiplying the number of coins in circulation by the coin's price. Bitcoin is now priced at $34,000 and has 18.7 million coins in circulation, giving it a market capitalization of $640 billion as of this writing.
Dogecoin has a market valuation of $30 billion, with a price of $0.23 and 130 billion coins in circulation. Many DOGE investors have now done some mental math to figure out how much their holdings would be worth if one DOGE reached the price of one BTC. However, if one DOGE achieved that price, DOGE's entire market capitalization would be $4.4 quadrillion, or almost 50 times the global GDP. See how silly that is?
So, while a low price is good since the currency becomes more appealing as a result of human psychology, bear in mind the amount of coins in circulation and establish reasonable expectations.
Analyzing The Smart Contract
Many of these coins are produced as tokens on blockchains such as Ethereum or Binance Smart Chain. They are generated using smart contracts, which are irreversible and define all of the coin's functionalities and parameters.
While this may appear confusing at first, after learning more about smart contracts and gaining some expertise, it becomes clearer what the smart contract can do and how the token was formed. For example, whether the smart contract's owner has the ability to mint new tokens, how many tokens he has, and how the tokens were distributed. It also aids in determining whether any exploits are available due to code flaws.
Number Of Holders
It is feasible to keep track of how many different wallets have the coin and how much each wallet contains using blockchain explorers such as Etherscan for the Ethereum blockchain and BscScan for the Binance Smart Chain.
The number of holders should ideally grow as the coin becomes more popular, especially for new currencies, and no single wallet should store too much of the coin.
By reading this article, you can understand how to buy crypto gems. If you are ready to invest your money in these gems, they can bring a lot of profit for you!