Common Mistakes for the Gem Hunters: - Too Aggressive, not hedging their portfolio with stablecoins or blue chips - If BTC dips 30%, your micro cap shitcoins can dip 80% - Understand where you are in the cycle before aping into high risk high reward micro caps
Don't rely on other people and ape blindly. - Develop your own intuition, your edge is built by becoming an expert - Cultivate your Inner Ape - Don’t be afraid to lose $$, Ape to Learn -You'll get rugged. If 2/10 do a 10x & you get rugged 8x, you still doubled your money
Anyone remember this guy? Turned 8k into 5 billion. While that may be the best trade in history and not a realistic goal... The point is being early to new crypto projects can be life changing!
@devchart · Nov 3, 2021Remember when everyone was wondering if the guy who turned 8k$ into 5 billion actually lost access to his wallet? Turns out he didn't and just started moving some of his $SHIB Address: https://etherscan.io/address/0x1406899696adb2fa7a95ea68e80d4f9c82fcdedd#tokentxnsShow this thread
Finding these projects early is a skill and can be learned. Over time you will get a nose for hunting alpha It will take time to become a proficient hunter. Don't get wiped out before develop your edge Here are the things that will help you develop & improve this skill:
Get comfortable with DEX's - Coins that are listed on a Centralised Exchange (Binance, FTX, Kraken, Coinbase) usually already have a pretty high Marketcap (MC). The law of big numbers: if Bitcoin has a MC of 1 trillion, it needs 99 trillion to do a 100x.
Some shitcoin with 1 million MC will need 99 million. That can happen in a couple days in crypto. Don't want to get involved in Dex's and still find gems? These will be low caps in the 10-100m mc range. @kucoincom is your best bet. It has the most low caps
(Whale) Wallet Watching - Last year I was watching whale wallets & youtube influencer wallets. I had notifications set-up for every movement. An influencer bought unknown token that just launched called $OHM. I aped first, did research later.
Find vibrant communities early and you'll find that will lead you on a trail of other gems. Finding the first one is the hard part.
Resources for Finding New Listing -
If you learn about a listing, you can quickly do your due diligence: - Check Twitter - Do pulse check in Discord (search bar is your friend) - Tokenomics? - Watch on chain for red flags (% held by team/founders/whales) - Partnerships
Next level MICRO gem hunting: This legend @shitc0in finds tokens a couple hours old less than 200k marketcap. To do a few more checks to minimise chance of a rug, check out this quote:
Shitc0in@shitc0in · I tend to ape coins sub 200k mc and less than a few hours old, to do this you need to snipe listings - I primarily do this on eth but these rules can be applied to other chains too if u can't afford gas
Leverage your Attention - Your time, energy & attention span is limited each day Don't rely 100% on yourself to find gems. Your network makes you aware of new alpha If you follow 100 quality Crypto Alfa hunters,
Now you've another 100 pairs of eyes searching discord and twitter for you. Focus your twitter feed, discords, etc. on one specific sector. Cut the noise, get rid of useless accounts.
Low caps your thing? Pursue that solely. #NFT's? Follow every project, immerse with those accounts. Get whitelisted early So much information comes in every day between all the charts, twitter, discord, telegram feeds, group chats, find a balance, know when to chill
Understand Meta Game - Understanding the $OHM fork narrative last year was extremely profitable. What did that mean? Finding new forks of ohm early on other chains and getting whitelisted was extremely profitable for a couple of individuals https://cobie.substack.com/p/trading-the-metagame?s=r
Evils vs. Good Seed Investors - Sometimes being early still means there were seed investors even earlier. Will you get dumped on? To flip or hold a % for long term? Some 'good' VC's invest for the long term. Other 'evil' VC's have no thesis, vision or conviction.
They fund short-vesting projects with a goal to quickly flip and extract value from a bull market. Here you find out where VCs lie on the spectrum:
Wu Blockchain@WuBlockchain · LobsterDAO recently summarized a ranking list of crypto VC, very interesting, what do you think?