How To Spot Crypto Gems Before Everyone Else
It is always interesting to hear about how someone who invested a few thousand dollars in a cryptocurrency turned that into a lot of money, like a million dollars. Brothers from New York bought Shiba Inu (SHIB), a coin that was made as a spinoff of Dogecoin (DOGE). Their initial investment turned into almost $9 million.
Because of tweets from Elon Musk, Dogecoin has become a big hit. Dogecoin itself was already made as a joke. People have made a lot of money thanks to meme coins and altcoins, like GameStop and AMC.
When everyone talks about it, though, things are often too late to do anything. Most of the gains have already been made, and if you get in because you're afraid of missing out (FOMO), you're more likely to lose your money.
When you spot crypto gems before anyone else does, you need to do it right away. To find them, you can use a few different ways of looking for them. This article will show you how to find the next 10x, 100x, or even 1000x crypto gem.
What Are Crypto Gems?
COPYRIGHT_BER: Published on https://www.bernardine.com/spot-crypto-gems/ by Barbara Mitchell on 2022-04-12T06:35:55.509Z
Crypto gems are coins and tokens that aren't very valuable and aren't very well known. They have the potential to make a lot of money. These new coins are often very cheap, often less than a cent each, and they could make you a lot of money.
As a result, it takes a lot less market activity and volume to make these coins worth 100 times more than they are now. This is called a market cap. In order for Bitcoin (BTC) or Ethereum (ETH) to go up 100x from where they are now, they would need a lot of new money to come in.
Make sure you can tell fake coins from real ones. Even with real coins, there is a lot of risks. I'll show you how to look for risks and make smart decisions when you buy these coins.
What To Look For In Crypto Gems
To figure out if the risk/reward ratio of buying a certain coin is worth it, there are many things you could be looking at. Having more of them makes it more likely to be a crypto gem. A crypto gem doesn't need to have all of them, but the more the better. In this list have the most important ones:
The People Who Made The Coin
The first thing to do when you want to learn more about a coin is to look at the whole project. When you visit the site, take a look at who is on the team that works on it.
Try to find out what other projects they've been a part of, how well they can keep their promises, how active they are on social media, and if they take suggestions from the public into account.
Also, look into how the coin fits into the crypto ecosystem, how it could be used, and how the project is going to move forward.
To learn more about the team, check out who the backers are. A lot of crypto venture capital firms back a lot of different projects, and you can find out if they're good and if other coins they've helped did well.
Cost Of The Coin
The price of a certain coin is hard to talk about because the effect it has on people is mostly because of how they think. At this point in time, the price of Bitcoin is in the tens of thousands of dollars for one coin.
It doesn't seem appealing to own just a small amount of Bitcoin. There are some coins that only have value in small amounts. It feels better to say you own tens of thousands and then think about how much your stash will be worth when the coin reaches one cent or even one dollar.
This is also why companies split their stock to make it more appealing to people who want to buy and sell it for money.
But in crypto, it's important to think about the total market cap of a coin, which is how many coins there are divided by the price of the coin. This is how you figure it out. This means that Bitcoin is worth $34,000 right now, and there are 18.7 million of them out there. This gives it a value of $640 billion on the market.
At the moment, Dogecoin is worth $0.23 and there are 130 billion coins in circulation, giving it a value of $30 billion on the open market. If one DOGE was worth one BTC, many people who bought DOGE have done mental gymnastics and worked out how much their money would be worth.
One DOGE would be worth $4.4 quadrillion if it sold for that much money. That's 50 times the world's total GDP. It doesn't make any sense at all.
In other words, keep in mind that a low price makes a coin more appealing to people because of their psychology. Also, look at how many coins are out there and set reasonable expectations.
Analyzing The Smart Contract
Many of these coins are made into tokens on a blockchain, like the Ethereum blockchain or the Binance Smart Chain. These blockchains are used to make these coins. Smart contracts, which can't be changed, are used to make them. These contracts are used to set all the functions and parameters of the coin.
When you learn more about how smart contracts work and get some experience, it gets easier to figure out what the smart contract can do and how the token was made. It could be how many tokens the smart contract owner owns, how many tokens he owns, and how the tokens were split. It also helps to check to see if there are any bugs in the code that could be exploited.
Number Of Holders
You can keep track of how many different people have coins in their wallets by using blockchain explorers like EtherScan for the Ethereum blockchain and BscScan for the Binance Smart Chain. You can also keep track of how much each person has.
It would be ideal for new coins, especially if the number of people who own them grows as they become more popular. No single wallet should have too much of the coin.
Where To Look For Hidden Crypto Gems
The best returns come when you find these coins on your own, before anyone else does. Some people rely on hearing about crypto gems from friends and people who have a lot of money. They can be found in these places:
- New listings on decentralized exchanges
- Price tracking websites
- Group messaging apps
- Twitter and Reddit
- Social media platforms
- Blockchain explorers
Trying to find crypto gems and find them before everyone else does is risky and time-consuming. But it can also be very profitable. Watch out for red flags, be willing to lose some money, and with time it will get easier to find these gems and make money by trading them.
You should look for those gems right now. You should look for and find projects and coins that are likely to skyrocket when the market starts up again. The market has calmed down a little.