How to spot a Cryptocurrency gem and invest before everyone else

Have you heard how cryptocurrency has changed people’s lives overnight throughout the year? Can you believe that in 2009 Bitcoin was worth $0.0008 per coin? Today Bitcoin is an expensive commodity in itself. Can you imagine how it must feel for the people who bought Bitcoin immediately after it was launched and then waited a few years before selling it?


Cryptocurrency returns are unique and higher than those of all other commodities; even gold doesn’t come close. I have seen coins whose value grew 10X, 100X, and even 1000X in a couple of days, weeks, or months. Anyone that had bought these coins before they grew usually bags handsome returns.

Figure: Figurative representation of Crypto gems (Sources Altcoin Buzz)

Sadly, most people catch the trend a bit too late and by the time they are hearing of the coin, everyone is talking about it, the price is already up and people are done making profits. Most inexperienced traders will still buy such coins with the hope that the price will continue to grow. This kind of investment is mostly informed by something called FOMO (Fear of Missing Out). Jumping in at the last minute is increases the risk of losing your investment especially in the case of a pump and dump (Story for another day). 


So how does one identify the trend early? How does one time the market right thus making handsome profits? If that kind of thing appeals to you then continue reading.

Finding Cryptocurrency gems

People usually refer to these new coins that bring handsome returns as ‘Crypto gems‘. If you think about it, they are gems especially considering that you have to do some ‘digging’ to find them. 


A cryptocurrency gem typically has an extremely price value is just on the verge of exploding in both price and popularity. When I say that their prices are extremely low, I am talking in terms of fractions of a cent. 


They have a very low market cap and trading volume which means that just a little increase in participation and volume often leads to a dramatic increase in value. That is why they can establish growths of 10X, 100X, and even 1000X in a few extreme cases.   


When it comes to identifying a cryptocurrency gem, you need to be very careful because 0ver 90% of the new coins are scams. The first therefore becomes to distinguish a legit token from a scam. Here are a few pointers that will make your work easier; note a good gem should hold several of these characteristics. 


1. A dedicated community – a cryptocurrency project is only as successful as its community is dedicated and vocal. You, therefore, need to be sure that the project has many followers on social media and that they are constantly engaged. 


2. A credible team – Most scams are easily identifiable by looking at their development team. Their identities should be legit and easy to verify by looking at their socials. They should also have relevant experience; it is a bonus if they have been involved in other successful cryptocurrency projects before.


3. Very low price – The price should be very low so that you can make a significant return. People are usually advised to go for coins with many decimal numbers since they hold the most growth potential.


4. A large number of holders – a coin should have several holders and be evenly distributed among the coins. Each time you see one coin hold 100% of the coins just know that it is a scam.


5. The smart contract – nothing reveals more than a coin’s smart contracts; from the code to the coin’s functionalities. It takes time to understand how to study smart contracts, but it gets much easier. 


Finding Crypto gems is more engaging than it sounds; you will need to stay abreast with new listings on decentralized exchanges, price trackers, group messaging apps, social media platforms, twitters, and Reddit, Cryptocurrency trends and be familiar with your Blockchain explorer. But in the end, it is a worthy cause.