The term “crypto gem hunting” is getting famous among the explorers of the cryptocurrency trading market. Crypto gems are not true gems hidden in treasures boxes. Instead, they are hidding within the existing market. They invite everyone entering this financial market to explore them and earn great rewards for believing in their potential and investing before anyone else finds them. Crypto gem hunting is an intelligent approach to make the most from the cryptocurrency market as it brings soaring profits in less time. Sounds interesting, right? Let dive deep into crypto gem hunting and learn all the necessary details about them that every trader must know.
What Are Crypto Gems?
Crypto gems are tokens and coins, just like cryptocurrency. They use blockchain technology and offer all the advances cryptocurrency offers for traders. There are many crypto coins, tokens, and other digital asset offerings in the market that traders use for trading purposes. Crypto gems are digital assets, but they are named because they act like real gems. These cryptocurrencies are not much known or take the lead in the market’s recent listings and are available at lower costs.
Traders usually ignore such cryptos and look forward to investing in those with a stable market position. However, it is tough to purchase leading cryptocurrencies, and even if one manages to buy them, he may not be able to gain much profit. Although crypto gems are offered at lower prices, they do not have a good trading volume or a stable market position.
They are often known for having microscopic value. Instead of a definite market position, crypto gems have a more substantial base and a total potential to face the market fluctuations and increase their value with time. They offer capital growth ranging from 10x to 200x depending on the number of buyers who start investing in them.
The number of digital assets is increasing immensely. New cryptocurrencies, tokens, coins, and other investment tickets using blockchain technology enter the market every day. Any cryptos that enter the market today can be the Bitcoin of the next decade. Let us understand this with the example of Bitcoin. In the past decade, you have seen a drastic increase in the number.
Back in 2009, Bitcoin was the only cryptocurrency with a value of $0, and a decade later, in 2019, it was $ 3,869.47. It was way beyond expectation, and today, in 2022, it is a whopping high of $ 47,743. In the future, this price can increase, remain stable, or decline with time. So investing and withdrawing investment at the right time is crucial to make profits from the assets.
In today’s digital market place there are thousands of hidden crypto gems. Traders must learn to analyze the market position of these assets using advanced trading tools. The efficient use of these trading tools guides traders about the asset’s current and future value. Furthermore, traders must review the token economics and offerings of the asset before investing in them. Experts suggest that taking an in-depth view of the newly introduced crypto gives traders an idea about the future of assets in the financial market.
Crypto gems don’t need to be only newly introduced cryptos in the market. Sometimes old crypto remains devalued for an extended period and gains its due recognition, value, and market position after waiting for a certain period. When such old cryptos get a favorable nurturing environment and traders’ interest from the financial market, their value increases, offering significant profits to their investors.
Crypto gem hunting has no scientific rule or trading strategy. It is all about analyzing a coin’s or token’s worth when it is available at cheap rates. Once you buy a coin when its price is low, you wait for it to grow and increase its value in the market. This waiting period can be short or long depending on the crypto you have invested and the time it is taking to enhance its value with respect to the market position. Investors of crypto gems need to follow the news and keep an eye on the market’s trend to check if their asset is growing.
Crypt gems are rewarding, but it is not always safe to invest in them. They possess higher risk when compared with typically trending cryptos in the financial market. Despite holding growth potential, sometimes the digital financial market does not move in the direction it is expected to move. The market volatility can cause crypto gems to stay stagnant and brings loss for the investors.
Where To Search Crypto Gems?
Have you ever seen gems displayed at the front? Nope, never. Similarly, crypto gems are hidden, and traders have to hunt aggressively and strategically. Traders have to find the crypto gems in the cryptocurrency marketplace, trading platforms, and some other unrelated places on the internet. Let us enlist some places where the probability of finding crypto gems is higher.
- Decentralized Exchanges
Decentralized exchanges are the number one choice among many places where you can find crypto gems. PancakeSwap is the most used decentralized exchange on the Binance blockchain, while UniSwap and SushiSwap are the most used decentralized exchanges on the ethereum blockchain. Decentralized exchanges offer several benefits over centralized exchanges. The benefits include low price, less time consuming, and easy listing processes as compared with the centralized exchanges. Anyone can list a cryptocurrency on a decentralized exchange.
Crypto gem hunters watch for new listings on exchanges and research them, and try to invest in them at the earliest possible. Sometimes cryptos are present for sale even before their formal launch in the form of a pre-launch sale. These sales bring excellent opportunities for investors to invest in the crypto that is about to hit the market. Sometimes teams launching cryptos contact influencers and leading traders, providing them with an excellent opportunity to invest in a growing opportunity.
- Blockchain Explorers
Following the footsteps of leading investors or searching the coins from scratch and tokens are two strategies to search for crypto gems. BscScan and Etherscan are the two blockchain explorers that permit you to explore the crypto wallets and coins in detail.
Leading investors and venture capital firms may or may not discuss their trading strategies openly. To get an insight into how these leading market players are searching for crypto gems, it is advised to follow their wallets and look for their trading activities.
You can work another way around by searching for a coin and then finding out who was its first investors. Then you can follow investors’ wallets, follow their trading activities and copy them to earn profits.
- Price Tracking Websites
All crypto traders use price tracking websites to check the value of their digital assets every now and then. These price-tracking websites enlist crypto gems in them. These gems are usually devalued and with little trading volume. They are usually listed on the back pages. One of the best tips to pick these crypto gems is that their market cap is between $500,000 and $10 million.
Once you find these crypto gems, you should dig into their details and analyze their profit/ risk ratio before investing.
- Reddit and Twitter
Reddit and Twitter are valuable platforms for crypto-related news. On these platforms, cryptocurrency launching companies, cryptocurrency specialists, and experts talk about market conditions, new cryptos entering the market, emerging coins, trading strategies, and any other topics. You can follow the crypto market leaders on platforms to see their trading activities and follow them to see what they are doing.
Alternatively, you can search for the coins that have recently taken over the crypto market. Observe who discussed these coins on Reddit and Twitter to observe what trading strategies or emerging coins they have recently talked about. You can invest in those coins and tokens to earn good profits.
- Social Media Platforms
Social media platforms such as Facebook, Instagram, YouTube, Tiktok are leading places to reach millions of people in a blink. Cryptocurrency influencers share their knowledge and talk about crypto coins on social media platforms that draw the attention of their followers to invest in these coins and make them grow. Influencer reviews play an immense role, and traders must pay attention to them to find out the coins that are gaining popularity. Mass interest towards a low-value coin has the potential to increase its capital 100 times within no time.
- Group Messaging Apps
Messaging apps like WhatsApp, discord, and telegram that allow group messaging serve as cryptocurrency spaces. Here, traders build groups to share their knowledge and expertise about trending coins, upcoming coins, market signals, or other news related to cryptocurrencies. Traders should be a part of such groups to receive the latest news from the market. You never know that you get your hands on some crypto gems from fellow traders.
What To Consider In Crypto Gem?
Now that we know multiple places to search for crypto gems, we must weigh these gems to avoid any risks. Although keeping the focus on trading volume is a valuable signal to assist the potential of a crypto gem, evaluating different other important factors still holds great value. Let us learn about some other factors that play a significant role in determining the value of a potential crypto gem.
- Price Of The Coin
Investing in the coins and tokens at a low price is advantageous. It brings profits when the market value of the digital assets rises in the financial market. Human psychology also impacts the price of the coin but more than that coin’s market cap, trading volume, and the number of coins in circulation are influential in determining the price movement of the coin. Traders can calculate market cap by multiplying the price of coins or tokens by the number of coins in circulation. Price estimation gives traders an idea if they should hold on to a crypto gem or get rid of it.
- Team Behind the Coin
Creating successful crypto requires higher resources such as financial experts, marketers, lawyers, promoters, and founders and developers. One should also consider the last project’s experience and reputation into account. You should avoid investing with cryptos that have small teams behind them or the founders are anonymous. Conduct thorough research through google and check for their social media accounts, including Twitter and Reddit to test the credibility of the token and coins you are planning to invest your hard-earned amount.
- Number Of Holders
The number of holders directly affects the trading volume. Traders must use blockchain explorers to see how many people are holding a crypto gem in their wallets. The number of cryptos in a wallet must have an even distribution in many wallets. A single wallet or a few wallets holding too many coins is not a good indication. As a coin gets popular more and more wallets must hold it.
- Charts
Looking at charts is important for crypto gem hunting. If all other factors are positive and it does not reflect in the chart, it is advisable not to invest in such crypto gems. Financial charts, such as crypto candles, display the highest and lowest value of a coin within a period and provides traders with a base to analyze the real position of the coins under consideration. If the chart shows that crypto has already in its high position, it is not a good time to invest in it. Charts graphically illustrate the coins’ position and let you have a clear picture if to invest in that particular crypto gem or not.
- Metrics
Metrics show the real position of the coins present in the market. There are many metrics that traders can take into account for determining market position but the key ones include price, supply, market capitalization, and trading volume.
Supply plays a crucial role in moving the prices of digital assets. Always look for cryptos with limited supply as scarcity will lead to increase demand, hence the higher prices. They have a realistic market cap and the potential to increase in value. You must check Etherscan and BscScan to check how many wallets hold the supply of cryptos. New coins will not be widespread, with owners having a major portion of them within their crypto wallets.
Moreover, look for coins with micro, small or low market capitalization. Their market capitalization is usually below $ 50 million and has a very promising growth window for traders investing their amount over time.
- The Identity of The Project
The identity of the project depends on how its developers and founders present the crypto project to the public for investment. Legitimate crypto will have a proper white paper, purpose, foundation idea, and other unique characteristics to grab investors’ attention. It also has a clear road map that gives an idea of how a project is safe to invest in and its position in the future.
Furthermore, always check the project’s social media activity, website, and online promotion strategies. Legitimate and valuable crypto coins and tokens have a good marketing strategy without spelling or grammatical mistakes.
- The Token Economics
Token economics are pre-defined economic aspects of crypto that strongly influence the coins’ market position, pricing, supply, and availability. Complete token economics defines how shareholders, stackers, and investors will get primary profits for their investment, increase their profitability, and how the project will make money while staying within the financial market laws. A detailed view of token economics prior to investment is mandatory.
Who Should Invest in Crypto Gems?
Anyone can invest in crypto gems. There is no legal or ethical restriction to it. However, the trading environment for hunting and growing does not favor everyone. Here is a list of people who should invest in crypto gems.
- Risk Takers
Investing in crypto gems is not a secure game. It is riskier than investing in stable crypto coins and tokens. The value of crypto gem can rise drastically, or you may lose all your investment. Sometimes the value of a crypto gem increases and then drops to zero within no time, making crypto gem hunting a riskier game to play. Hence, only people who can deal with the associated risks must hunt the crypto gems.
- People With Lower Capitals To Invest
Crypto gems are devalued and have a smaller total market capitalization. They require little market participation and trading volume to push their value towards 100 times increment. Investing $100000 in Ethereum or Bitcoin has no effect on them, but it will drastically increase the value of a crypto gem. This provides people with lower capitals as it is more suited for them. It provides them with a chance to grow their investment.
- People With Time
Finding a crypto gem is a time-consuming process. Once you have a crypto gem in your wallet, it requires more effort and time to keep a focus on market news, announcements, price position, community, and other details. Investors must have plenty of time to keep themselves updated about the value of their crypto gem.
The Bottom Line
Crypto gem hunting opens the window for earning tremendous profits. It also possesses certain risks. In order to avoid risks and pick the best crypto gems, crypto hunters must perform in-depth research by evaluating the important characteristics of the projects and assets they are considering for investment.
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