Here are 10 points I summed up when choosing altcoins that can 100x.
1. Small market cap. It is much easier for a $100 million coin to go to $10 billion than a $1 billion coin to go to $100 billion. The smaller the market cap, the greater the upside potential, but also the greater the risk. Don’t buy coins from the top 100 list to get 100x coins. Usually it should be the top 200-500 coins. Its market cap should be relatively low, but not $100,000, but around $3-9 million.
2. Solve a real-world problem. Check out CoinMarketCap or Feixiao to understand what the token is used for. Do you know this token? Did it work for you or anyone you can think of? Take TrustSwap for example, by owning a certain amount of tokens, you will get priority in new offerings (or ICOs, /IDOs), and as we know by now, you will also receive free airdrops of new tokens or coins from time to time. Of course, the biggest altcoin is Ethereum. Every time you execute a smart contract, you need Eth to pay gas fees – such as exchanging one token for another, or staking tokens to earn interest. There are millions of Ethereum transactions every day, all of which require GAS. In some cases, coins are of very limited use. For example, some coins don’t actually require anything but allow you to vote on changes to the software. I call these “governance” tokens. They are of little use to me, so I won’t buy them.
3. There are many usage scenarios. If you can find a coin that is actually in everyday use today, that coin will be worth more than the slogan that has the big vision. Sometimes, projects are so difficult to complete that team members give up before they can be done. For example, there are many scenarios where Dogecoin is used in the market. At present, there are thousands of offline entities accepting Dogecoin as payment. And ICP (DFINITY), which is said to be an Internet computer from the beginning, is more difficult to succeed.
4. The number of users has increased significantly. For example, crawlers or manual excel can be used to count changes in the number of token users per week. You can count the number of addresses, the number of Twitter followers, the number of telegram groups, and the popularity of Google searches on Feixiaohao. Of course, the above data can be found by intermediaries, and it is necessary to identify the specific heat.
5. Huge untapped potential market. Ask yourself if the planned market still has a lot of potential. If there is, it’s a good signal.
6. The coin supply is fixed or deflationary. Ideally, you want a coin that doesn’t inflate significantly with price increases. Look for a fixed supply where most coins are already in circulation.
7. A regularly updated website. I love seeing recent updates explaining recent and upcoming developments. This shows that the team has not abandoned the project.
8. Team. I want to be able to see the faces and bios of the team. Be wary of cryptocurrencies because you can’t be completely sure the team is real. Many of the pictures of people posted on junkcoin websites are online pictures, try to choose a team with a certain background.
9. Community engagement. A good cryptocurrency will have a strong community on Telegram who will welcome you and help you understand token economics and be able to answer your questions. If they can only say something like “Go to the moon! This is a good project!” then there’s probably nothing worth saying. Find project members in community chat. Are they there? Are they answering questions intelligently?
10. Elevator lobbying. Meaning can you explain to someone in four or five sentences why this cryptocurrency has value? If you have a hard time doing this, you either need to study it more or walk away.
To sum up, we are in the midst of a surge in cryptocurrency prices. Funds flow into Bitcoin, which in turn leads to funds flowing into altcoins. Since the altcoin market is smaller than Bitcoin, this effect is exploited. Many of the smaller altcoins under the top 200 have the potential to hit 100x, but you have to be prepared to see if the coin you buy actually works. Even if you make some mistakes, the rising wave of cryptocurrency prices will make you better. Make sure to diversify and avoid getting too concentrated in any cryptocurrency.