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How to spot crypto gems?

With the help of Crypto Gems, millionaires were made in 2021 during the bullish movement in cryptocurrency. 

Crypto Gems are tokens that are undervalued and out of the public eye. They have the potential for delivering massive gains like 100x, 40x, 50x, etc. 

Anyone can buy Crypto on either centralized exchanges or decentralized exchanges. 

Stories have been told of people that flipped $50 to $2000 by buying a particular token.

Just recently, two brothers from New York invested $7,900 in Shiba Inu (SHIB) and made over $9million. 

Criteria For Spotting Crypto Gems

Spotting Crypto Gems is done based on fundamental analysis since technical analysis only comes in when a coin is already listed. 

There are various techniques adopted by different traders in spotting crypto gems but below are the overall criteria to observe in crypto gems. 

The roadmap of the project

If you fail to plan, you plan to fail.

This theory still holds in the crypto space. While looking for crypto gems, you should be mindful of the roadmap that the project will follow in achieving its objectives. 

The team behind the project

  • Who are the people building the project? 
  • What is their track record in the crypto space? 
  • Have they been charged with any fraudulent activity from any of their previous projects? 
  • What’s their level of knowledge about crypto space? 

Successful projects can be released by those that do not have full knowledge but there is a higher chance of success if a project is being developed by those that have prior knowledge. 

The team working on a project is as important as the project itself because the success of the project lies within their initiative. 

The price of a coin

Buying bitcoin today and expecting a 100x might be regarded as mission impossible. 

Yet, Bitcoin, when it was launched in 2009 was $0.01. If you’ve bought bitcoin then and sold it now. Your $100 investment would be worth millions of dollars now. 

While searching for your next crypto gems, you should check out the price of the coin. 

The price of the coin will help you to note whether the coin has passed being a gem stage. 

Possible use cases of the coin

The Crypto market is now flooded with a lot of coins without any real-life use case. 

But gems always have real use cases. For instance, one of the use cases of $CSA is the Bitsave protocol which combines savings with defi. 

There are traditional problems that can be solved using blockchain solutions.

Also, there are setbacks in previous blockchain solutions that can be solved by new projects. 

For instance, when the Ethereum blockchain became clogged and slow with high transaction fees, Binance Smart Chain was deployed with speed and low transaction fees. 

This moved a lot of projects from Ethereum blockchain to Binance Smart Chain which catalyzed Bnb (the native token of BSC). 

The owner of the coin

The owner and the team should be considered as a whole and separately. 

The team might be a group of crypto enthusiasts but the idea of the project was developed by the owner. 

That’s why the owner should be investigated separately from the team.

The number of holders

If a larger percentage of the circulating supply is held in a single wallet, such a project should be avoided. 

The number of wallets holding the coin is an indication of how decentralized a coin is. 

When more people are holding a significant amount, manipulating such a market will be difficult but when a single wallet is holding a significant amount of the coin, such a person who is most likely to be the owner can dump on others. 

The smart contract

Another criteria that should be checked is the smart contract on which the project is built. 

Smart contracts are built by individuals and are liable to potential attacks and bugs. 

The longevity of projects can be influenced by the smart contract on which it is built. 

Red Flags While Spotting Crypto Gems

Inactive community 

The community behind a project plays an important role in the success of the project. 

A potential crypto gem should be avoided or traded with caution if there is no quality engagement on the project’s social media posts and community. 

Promises on future gain 

The crypto space has produced several millionaires but this does not mean that a specific date for a pump can be guaranteed. 

Though there can be speculations about the price of a coin but any coin whose founder is talking about a certain return should be avoided. 

For instance, Bitcoin was predicted to reach $100,000. 

Rather than yielding to the speculations, bitcoin took a u-turn back to $29,000.

Providing a specific price for a token is a red flag that should not be waived while spotting crypto gems. 

Possible exploitation of the code 

The smart contract code used in creating the token can be audited. 

This can only be done by system analysts and blockchain auditors in search of possible bugs in the code.

Any loophole in the authenticity of the smart contract is another red flag that should be considered. 

Low market cap

Cryptocurrency with a low market cap requires less market participation and volume to increase the value of the coin by 100x.

A low market cap is an indication of possible manipulation. 

Where can I spot crypto gems? 

Crypto gems are spotted before most people talk about them. 

By the time everyone starts talking about it, the biggest gains have already happened. 

Crypto gems can be spotted in different ways which include;

Trends

Following trends is the most lucrative way of spotting gems. 

ICO was hyped in 2017. Defi was hyped in 2020. 

NFTs was hyped in 2021 but currently, everyone wants to go to the metaverse. 

Other means include:

  • New listing on centralized exchanges like Binance, Coinbase, etc. 
  • Price tracking websites like Coinmarketcap, CoinGecko, etc. 
  • Reddit
  • Telegram bots such as coinmarket-cal

Speaker’s Parting Words

Spotting crypto gems requires you to do your own research and be a risk-taker. 

Hunting for crypto gems is lucrative in the long run. However, you need to be okay with losing some money and don’t be afraid to take your profits. 

This is an excerpt of the let’s talk session with Barineka organized by Crypto Smart.

Let's talk session with Hilary

If you would like to know how to become a successful trader in the Crypto space, join us on Crypto Smart’s telegram community.

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