Blockchain Gems - How To Get In Early
We’ve all heard the numerous stories of people who invested a few thousands in the early-stage cryptos and ended up being millionaires. In this article, we’ll take you through the basic steps for where to find the next blockchain gems and how to recognize it.
Author:James PierceReviewer:Gordon DickersonJan 06, 2023302 Shares302K Views
Whoever gets in early, wins big. We’ve all heard the numerous stories of people who invested a few thousand in the early-stage cryptos and ended up being millionaires.
In this article, we’ll take you through the basic steps for where to find the next blockchain gemsand how to recognize them.
What Are Blockchain Gems
Blockchain gems or cryptocurrency gems are coins or tokens with unbound potential for growth. Typically these are cryptos that are either in the early stages of development or that are somehow undervalued. In most cases, these assets are off the public radar as well.
Such gems are always low, or even microscopic, market cap cryptos that have room to increase in price by 10x, 20x, or even 100x. They are generally not listed on major crypto exchanges, and so they have low trading volumes and, accordingly, low market capitalization.
So, if thousands of new buyers discover these gems and start buying them, their trading volumes shoot up, and so do the prices. The key thing is that small market-cap cryptos require much lower amounts of volume to make a big difference than large-cap cryptos.
Because of their microscopic market capitalization, crypto gems have the highest potential to explode, and therefore generate plentiful rewards. On the other hand, they are also the riskiest. This is what makes the process of hunting for crypto gems so thrilling.
Where To Look For Blockchain Gems
To win big from micro-cap cryptos, you have to buy them while they are exceedingly cheap. That’s the key. Unfortunately, this also means finding gems before they attract massive attention.
If you heard about some great new coins from news media, it’s already too late. So then, that means it must be better to become some kind of crypto detective and start your own research. Here is the list of the most promising places to search for blockchain gems:
Crypto Launchpads
One of the best initial places to begin your quest for early-stage crypto projects is cryptocurrency launchpads. They are like decentralized fundraising platforms, where anyone can find data on upcoming token sales, Initial Coin Offering (ICO), and Initial DEX Offering (IDO) listings.
Experienced crypto gem hunters use launchpads as a starting point for identifying promising projects, and participating in their presale rounds. This means investors can buy cryptos prior to their public ICO launch.
They buy coins at a fixed price, providing the developers with the money necessary to finalize their projects. Investors meanwhile, get one of the lowest possible price points for their trust in risky early-stage projects. There are multiple crypto launchpads to find on the internet. PolkaStarter, DuckStarter or ICO Drops are the most common.
New Listings On Crypto Exchanges
Cryptocurrencies rise in value due to growing demand. Naturally, to generate demand, they have to be available publicly or, in other words, listed on crypto exchanges.
Crypto exchanges unlock entirely new horizons and possibilities than simply presales or ICOs. Receiving a listing on them often comes with huge spikes in the price for the token in question. The centralized and most prominent crypto exchanges like Coinbase, Binance, and Kraken are constantly announcing new, upcoming coin listings on their websites.
However, they also apply strict policies to their new listings. Therefore many early-stage crypto projects start from more liberal decentralized exchanges (DEX). The most popular DEXes like UniSwap, dYdX, and PancakeSwap don’t have stringent requirements for new coins.
Crypto Price Tracking Sites
Major crypto price trackers, like CoinMarketCap and CoinGecko, follow thousands of cryptocurrencies. They provide data regarding prices, market caps, and circulating and total supplies for all of these coins, even the micro-cap ones.
Such platforms also provide information for which exchanges each crypto is listed on. In addition to this, they also publish calendars for upcoming cryptocurrency airdrops and ICOs.
Here’s where the first phase of your crypto gem hunt comes to an end. Whenever you find promising coins, you have to complete the next step; double-checking.
Researching On Blockchain Gems After You Find Them
Experienced crypto hunters say there are no shortcuts to identifying gems. If there were, we’d all be rich, they add. The only verified way is proper research. To evaluate if a coin has growth potential and whether it is a scam or not, you have to check information such as the project itself, its team, key metrics, and the community behind it.
The Identity Of The Project
Research the idea, the uniqueness and the characteristics of certain crypto. Why was it created, what does its project do, what problem does it solve? And most importantly, how?
Examine how a given crypto project is different from the competition. How does its whitepaper look? Is it credible, and does it explain itself to you enough? Or is it just being fancy and technical simply to draw you in?
Then check out the project’s roadmap. It should show what stage of development the crypto startup is at, and how its future is planned.
Finally, go to the official website and the associated social media. If they look incomplete and feature a lot of grammatical errors, or broken links, then it’s likely a scam. Serious projects care about their reputation and invest in how they appear.
Team Behind The Project
Nobody likes to entrust their money to an anonymous, or inexperienced team. Thus the people behind any project are of key importance.
To begin your research here, check the social network accounts of the project’s founders and developers. What are their experiences and reputations? Have they worked with crypto before? Do they have the required skills to make a crypto project successful?
You can even consider using Google image search to check if they are real people and not nice faces from stock photo banks. No matter how crazy it may sound, scammers often mask their identities with fake pictures.
Then analyze the size of the team. Startups with several leaders and a few developers should raise a red flag. Creating a successful project requires much higher resources, from lawyers to marketing and PR.
Finally, check if the project has any venture capital backing. Investments from solid, reputable firms are always a good sign.
Community
Crypto ad capabilities are limited and fall under multiple regulations. Therefore social media platforms and internet forums are critical tribunes for cryptocurrency projects. They hold huge power to move coin prices.
Crypto projects put lots of effort into building and keeping their communities. Thus projects with small (under 20k users) and inactive follower bases are atypical. Social media can also be a perfect indicator of how transparent a given project is and how much it shares with its audience.
The Metrics
Investigate token metrics. Usually, the key ones are market capitalization, supply, price, and trading volume.
Look for coins that have low, small, and even micro-market capitalization. Micro-cap cryptos are usually those with market values under $50 million, and they have the biggest potential to grow.
Then check the circulating and maximum supply numbers. A fixed maximum supply suggests that the asset is scarce, which typically leads to price growth over time.
Skip projects with billions of tokens in supply. It’s best to search for projects with fewer coins as they have the most potential to grow in price and keep the market cap realistic.
If possible, check how many wallets already hold a certain coin. Websites like Etherscan and BscScan share such information.
New coins will probably not have a huge number of holders. But if only a few owners hold a major part of the supply, then it’s better to avoid such projects.
Further, look at the price chart to see how the coin has acted in the past. There are thousands of pump-and-dump coins that unexpectedly rise and then crash just as suddenly. If you see major spikes in price charts, check if there were any fundamental reasons for it.
Finally, look at the trading volume. This is the total number of coins that were bought and sold on crypto exchanges.
A high volume indicates that the market is more liquid, giving more chances to buy and sell coins without drastic price swings. Check on the 24h volume to get a good impression.
People Also Ask
What Are Crypto Hidden Gems?
The best way to invest in the crypto market is to research and invest in hidden gems. Solana (SOL), Polkadot (DOT), and Logarithmic Finance (LOG) are crypto gems that have the potential to earn investors a lot of money.
Where Can I Find Blockchain Gems Before Pumping?
You should look for its trading volume on both centralized and decentralized exchanges. Check this info on the market tab at CoinMarketCap for the coin you're looking at. Look for exchanges where it's listed (e.g. Kraken, Coinbase, Kucoin, etc.) and how it's being traded.
Which Crypto Coin Will Pump Next?
A list of potential big-booming 2022 cryptocurrencies cannot be complete without Lucky Block. Its approach to blockchain is via the prize draw sector, creating a highly transparent and efficient NFT competition network. On Lucky Block, users get several opportunities to earn rewards.
Conclusion
You can apply the same blockchain gems-hunting rules to any cryptocurrency. Exclude market-cap nuances, and they’ll become generic. So if you’re planning to learn how to research cryptos before investing in them, this is also a solid guideline for your future in the space.
James Pierce
Author
James Pierce, a Finance and Crypto expert, brings over 15 years of experience to his writing. With a Master's degree in Finance from Harvard University, James's insightful articles and research papers have earned him recognition in the industry.
His expertise spans financial markets and digital currencies, making him a trusted source for analysis and commentary. James seamlessly integrates his passion for travel into his work, providing readers with a unique perspective on global finance and the digital economy.
Outside of writing, James enjoys photography, hiking, and exploring local cuisines during his travels.
Gordon Dickerson
Reviewer
Gordon Dickerson, a visionary in Crypto, NFT, and Web3, brings over 10 years of expertise in blockchain technology.
With a Bachelor's in Computer Science from MIT and a Master's from Stanford, Gordon's strategic leadership has been instrumental in shaping global blockchain adoption. His commitment to inclusivity fosters a diverse ecosystem.
In his spare time, Gordon enjoys gourmet cooking, cycling, stargazing as an amateur astronomer, and exploring non-fiction literature.
His blend of expertise, credibility, and genuine passion for innovation makes him a trusted authority in decentralized technologies, driving impactful change with a personal touch.
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