The Treasure Trove
Everybody wants to put money into micro-cap companies that will eventually get to the top 50 projects, but usually only after they have already arrived! Many people desire face-melting pumps but do not willing to take the danger of purchasing them. Solana was previously rated with a large number of micro-caps, some of which may still be micro-caps today. Some have stated that I was unable to purchase SOL for $0.30. The claim is made that CoinGecko displays the record low price at $0.50. I’ve talked about this before, but let’s go over the details again. First off, CoinGecko’s statistics for every alternative currency only follow the project’s price development since the time it was added to the database.
Any price movement that occurred before to this is not included. Once again, ignorance is presented as knowledge when it is really just a matter of bad research, a lack of comprehension, and hubris. Second, Solana’s ICO price, which was about 0.22, continued to trade in this region for a while. Hotbit was the exchange at the time to include alternative currencies before anyone else. Despite expensive withdrawal fees on some coins, this is where I spent the majority of my time looking for altcoins.
Nowadays, MEXC, Gate.io, and KuCoin offer the earliest listings, as well as under-the-radar projects that are yet to be listed on major exchanges. Being able to look back at an early entry looks amazing in hindsight. However, such a decision often appears foolish during the moment of execution… and this is where many potential investors are overwhelmed and fail to act. This is why research is so important… eventually, a conviction will arise, either way. If you are an investor and not a researcher you have deceived yourself.
It’s comparable to pretending to be a football player while being unaware of the regulations governing the sport. Without regulations, how can you play football? Similar to this, how can you commit to a project before conducting extensive study that offers understanding and insight?My choice of altcoins is only surfacing. I reveal what may have been hidden from many others. Then, a prospective investor should examine it in the context of study to see whether it is indeed useful. Most cryptocurrency investors avoid doing this. They demand direction on what to buy. In essence, they decline to accept accountability for their financial choices.
They want to be told what to buy, and if it doesn’t work out, they want someone to blame. Zero accountability or responsibility for their financial decisions. This depressing fact provides some insight into why so many newbies wind up getting REKT. Altcoins have always been a very hazardous type of investment. Now consider how much riskier micro-caps are. The dangers are great and very real! A micro-cap, on the other hand, is a one-way ticket to absurd gains once it enters the highway.
Three Important Points To Remember
When investing in altcoins, especially micro-caps, I want to start with a position that is respectable but also wouldn’t be detrimental if the project failed. Regarding declines from higher highs—typically highs that are noticeably greater in percentage terms—I continue to add to that position. When it comes to micro-caps, continuing dollar-cost averaging into falling prices is not a good idea. For such a dangerous asset class, this level of risk management is necessary. I secure my entry point and subsequently, my investment by accumulating positions in this manner.
Secondly, even though micro-caps see enormous gains early on in a bull market. The real action, in terms of ROI, comes into play in the final three to four months leading up to the typical blow-off top that usually signifies the end of any bull run, but especially when it comes to Crypto. This is where your investment truly multiplies, especially if you were able to enter your position at the very bottom, or as close to the bottom as possible. In terms of micro-caps, it’s more a case of discovering the project long before the general market catches on.
The third and final point to bear in mind is that you have to exit an altcoin position as soon as you perceive a top to be in. Look at Unibright for instance, it was one of my altcoin picks from the last cycle that surged from $0.01 to $4.22. Currently, UBT is trading at approximately $0.06, which is still up 600% from $0.01. However, selling as near to the top as possible, and then buying lower trumps hodling by a long shot.
Remember, many who advocate hodling do so because they don’t trade. If you are a trader, you are able to get a lot more bang for your buck by selling, as opposed to holding. However, every investor needs to make their own investment decisions in light of their knowledge and capabilities.
Final Thoughts
This can be a treacherous road for the ill-prepared, or immature investor. It’s an area that requires strict risk management, discipline, patience, and emotional control. This is something that everyone who enters this space needs to be aware of. This is not investment advice, but my own interpretations and views of the altcoin market. Stay strong, and see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.