Introduction
This isn’t like a competitive term that has made its way into the crypto market out of the blue, ‘gem hunting’ refers to the idea of sifting through a bunch of stuff that involves cryptocurrencies that have a low tier value among the market along with those that are highly significant so what happens here is that you test out a bunch of cryptocurrencies for the sake of finding the absolute ones or ‘gems’ if you must.
These are the crypto tokens that have tons of potential moving forward, which means that if you choose to go with any of these, then one thing is for certain, and that is you will be making tons of return on your original investment.
You need to follow one very critical rule in the whole investment playbook, and that is to buy these assets when they are dirt cheap, and that is not something that comes very often; with that being said, it is critical to clear it out that hunting for these crypto-assets is certainly not some rocket science that you need to master, a few tips here and there are enough to get you through.
The success stories are filled with all kinds of elements stating that whoever managed to chip their money into a dedicated cryptocurrency in the very early stages has managed to win splendidly in the long run. Some have even managed to become millionaires, if you can believe something like this.
This is a beginner guide for you to do something very similar; it might not ensure that you will become the next millionaire or something like this, but one thing is for certain, and that is you will definitely be able to track these crypto gems that are out there without the added risk of dealing with a volatility factor of the crypto market because these are the darling cryptocurrencies at the moment and there is absolutely no need to panic over little dips in the price because, in the long run, these are going to protect itself at a harvest stage.
So, without further ado, let’s get right into it because you wouldn’t want to miss out on the action of finding these crypto gems within the crypto market and then getting full exposure to these in the right capacity;
What is a Crypto Gem?
Crypto gems are relatively crypto tokens with elementary potential for growth in the future; these might be the coins that are extremely popular at the moment and are gaining or sustaining this particular popularity with their features, price setups, and the overall demand that this particular token has within the market.
In short, it could be said that a crypto gem is something that is kind of a rock star within the crypto market at the moment, and if you get into this action earlier which means that you become the primary investor in this particular token, then the chances for growth are limitless.
If we get into the meaning of the word ‘gem’ then you would naturally have to assume that these kinds of tokens are extremely scarce in their quantity and are only available through a mere strike of chance, this kind of investment or opportunity is present at a microscopic level and if you can get into the earlier action for these crypto tokens then eventually their price is going to increase by 10, 20 or even a 100 times more than what you usually paid for them.
So you can naturally assume that the potential for growth is there, but you need someone to blow the whistle on this opportunity, or it should be kept in a closed circle to make sure that only people with potential investors can have the information or word about this particular type of investment.
Multiple crypto exchanges out there might not have these tokens listed on them because these have extremely low trading volumes and, therefore, extremely microscopic market capitalization, but this shouldn’t derail you so much because, in the long run, market capitalization can include the intrinsic value of the asset and overall price momentum that it has had.
So if we naturally assume that there are thousands of new buyers who by a mere stroke of chance have come about this incredible information and they just start putting their money into this opportunity, the trading volume for these crypto-assets is going to increase significantly, which is why the price factor is also going to sustain some change.
You would assume that naturally, if you continue to buy something regularly, its price would continue to increase because the demand is increasing hence there is pressure on the supply chain that particular financial asset has hence the legitimate increase within the price action.
One thing that you should keep in mind is that these small market capitalization cryptocurrencies don’t require significant attention to create a subtle difference from those large-capitalization cryptocurrencies because of the fact that their market capitalization is only minimal, which gives them an initial push to these cryptocurrencies to explore their true price potential in the coming years and therefore generate incredible rewards and returns on your original investment.
It is just like that, and as a crypto investor, you have to consider both highs and lows of whatever financial asset you want to pour your hard-earned money into. It shouldn’t be invested somewhere blindly just wandering around the voice of some crypto influencer because, at the end of the day, it is going to hurt you big. These kinds of cryptocurrencies are extremely risky; to begin with, you can either end up generating 20 times more than your original investment or you could end up with literally nothing.
How to Find Crypto Gems?
If you really want to turn in a profit in any potential financial market out there, then the tip to you so is to buy those financial assets when they are down. You are not going to have it any other way because when you buy something that is already at a significant price point, you won’t be able to make as much profit on it, and therefore the investment in that particular area is futile.
These micro capitalization cryptocurrencies, on the other hand, need to be bought when their price is extremely low; that is the key here; if you are going to neglect this particular metric moving forward, then it is going to come out in the future and going to bite you big time.
‘Secret’ is the primary keyword here because you don’t want any other investor with particularly deep pockets than yours to have any information about these essential gems; you want to keep it a secret and want to get on the live-action before these reimburse massive attention from the market itself.
If you have heard about one such opportunity from a news site, social media, or other such platforms, then, unfortunately, it is already too late because by the time you even muster up your finances or investment to pour them into this particular crypto many other investors possibly have chipped in hundreds or even thousands into it. And there won’t be so much so that even a little straw to grab onto.
So, should you become a crypto detective to be able to find these gems out there, wouldn’t it be an extremely harsh scenario to put yourself through? It sure is, but at the end of the day, it is much more rewarding than just progressing with active trading.
When it comes to active trading, you are actually buying some cryptocurrencies that are already the big guns of the crypto market; these already exist, these already have an audience, and when you pour your money into these out there so, you are just another member who is pursuing the trading aspect for that particular crypto.
Taking into account Bitcoin trading, you can buy Bitcoin when its price has taken a dip, and you would be selling it when it reaches an all-time high or it re-sustains its price. This is simple trading economics, there is no all-time high or price record going on here, but the returns are always minimal; you won’t be able to receive a simple 20, 50, or even 100 times return on investment which you might actually have going with a gem cryptocurrency. This is just how conventional crypto trading works; the returns are always minimal.
On the other hand, if you choose to become a crypto investigator or detective to find those precious gems out there and then get on the live-action before the massive investment body of the crypto community does, then it is going to be an incredibly profitable situation for you in the long run. Following are some of the places that you can use as a resource to find more about these crypto gems, where they are located, how can you buy them, and what the future hold for them as well.
Crypto Launchpads
The best way to get your hands on a crypto project that is still in its early stages is to consider browsing through multiple crypto launch pads out there. It isn’t like there is a proper service out there that lists all the crypto projects that are still in their early stages, but with a few searches on the Internet, you would be able to find a few interesting options out there that are still in their early stages of development.
And by the looks of the project values, the white paper, and the overall purpose of the project in question, you would be able to properly guess the eventual intrinsic value of the project, thus making up your mind if it is something worth your time or should you just keep looking.
There are multiple decentralized fundraising platforms out there where data could be found on all the upcoming token sales; this includes information for not only initial coin offerings but also for initial Dex offerings and other associated listings.
It means that you would be able to find enough information about all the upcoming crypto tokens that are still in development and about those who won’t be able to make it to the crypto market but would go straight to a decentralized platform for the sake of listing themselves for the selling purposes.
Usually, the crypto detectives explore launchpads as the very starting medium for getting their hands on some of the most promising projects out there and for the sake of participating in the early sale rounds where the initial native token for that particular group project is showcased, and its exposure is given to a minimal number of investors, to begin with.
It means that you won’t have to wait for a crypto project to announce its ICO, and you will be able to become an investor in that particular project. These coins are made available at a fixed price which allows developers to have a clear-cut idea of the overall money required to finish their project.
Investors, on the other hand, get their hands on some of the most incredible crypto projects out there and their offering in the lowest price tier possible, which allows them to assess the risks associated with investing further into that dedicated project and for the sake of identifying the early life stages of the project upfront.
New Listings on Cryptocurrency Exchanges
The only way for cryptocurrency to end up among the listings of a decentralized exchange is if it has enough trading volume and people are really interested in it, which means that its demand is growing.
When cryptocurrencies tend to rise in their value naturally, they are submitted to a dedicated crypto exchange where they can be listed properly so that proper trading metrics can be generated around them. When it comes to generating demand and interest of the people, it is important for cryptocurrencies to be publicly available where proper trading could take place for these cryptocurrencies.
When these cryptocurrencies are listed on a dedicated decentralized exchange, the possibilities for these cryptocurrencies to have elementary exposure and added value to their overall stance are amazing here. They could reach new horizons, and the possibility of achieving new experiences doesn’t remain impossible at all.
Whenever a cryptocurrency or another financial asset, for that matter, gets successfully listed on a dedicated crypto exchange or any other exchange for that matter where it is publicly available, the price factor tends to go up. Investors see that particular financial asset as an opportunity that has enough growth potential, thus leading to massive inbound transfers of funds to acquire that particular asset.
What you need to do here is to make sure that whatever centralized or decentralized crypto exchange that you bump into, you check these out for newer crypto listings which will eventually point towards cryptocurrency projects that are still in their very prime. Some of the most popular crypto exchanges out there are always seeing the newer additions they have had either on a weekly or monthly basis; this is something that you can check out consistently to make sure that you are not missing out on any new details.
Make sure that whatever project you end up going with has a proper set of policies not only applicable to the project itself but also made part of the white paper. Because the centralized crypto exchanges are going to impose extremely strict policies for these new listings, decentralized crypto exchanges are still the best way to hunt down the newer crypto projects because for the obvious reasons of extreme transaction fees and stricter policies, the decentralized crypto exchanges are still the first and most prominent choice of these newer crypto projects as a platform to project themselves.
Price Tracking Sites for Cryptocurrencies
CoinMarketCap and the CoinGecko are some of the major price tracking sites for cryptocurrencies where you would be able to cross-reference the price action of thousands of different cryptocurrencies. Not only this, but you would be able to cross-analyze their price patterns with each other or with the same cryptocurrency and its earlier price momentum at a different period of time; this allows you to have a deep insight into the trading patterns for that particular crypto, what the overall price action has been for that particular group currency and if you should be getting into it as an earlier investor or should just back off.
These tracking sites allow you to have meaningful insight into the circulation of these cryptocurrencies, their market cap, price action, and the overall supply chain analytics they have within the market. You would be amazed to know that these tracking sites track not only the macro capitalization cryptocurrencies but also those which have a relatively smaller capitalization within the market. You can also find relevant information, such as where the dedicated crypto is listed on a centralized or decentralized exchange.
Not only this, but you’d also be able to grab insights for all the upcoming ICOs and other crypto-related events which will be unveiling the new cryptocurrencies as soon as these are made available. All of this shall help you in finding more about the overall statistics of the cryptocurrency that you consider to be a gem and are considering or are really tempted about investing in that relevant cryptocurrency.