To enhance your capital in the crypto realm, paying attention to hidden gem projects is essential. Given the frequent inquiries on how to unearth these potential gems, here’s a detailed guide to conducting effective research.
Step 1: Start with Investment Volume
- Utilize platforms like CryptoRank, CrunchBase, and CryptoFundrasing to get started.
- Enter the project name in the search bar and examine the investment figures closely.
Step 2: Categorize Projects Based on Attractiveness:
- Over $50 million in investments indicates top-tier potential.
- $10 – $50 million suggests a strong project worth considering.
- $5 – $10 million warrants monthly news check-ins.
- Less than $5 million still deserves attention under specific conditions.
Step 3: Assess the Quality of Investments:
- Investments from renowned funds like a16z, Paradigm, Binance, Coinbase, DWF, and Multicoin signal potential profitability.
- Funds such as OKX, Shima, Polychain, Polygon, and Big Brain Holdings present a 50-50 profit chance for the average investor.
- Other scenarios require deeper research.
Step 4: Evaluate Social Media Presence:
- Use TweetScout to analyze a project’s Twitter link for bot activity, follower count, and social score.
- The highest social score observed is 4573, setting the benchmark for excellence.
- For crypto projects, a social score (SS) between 1000 to 2000 is outstanding, 200 to 1000 is average, and anything below 200 is considered weak.
- Genuine projects typically have near-zero bot activity. A bot percentage over 40% raises doubts about the project’s profitability.
Step 5: Use Follower Count as Supplementary Data:
- Projects with 100k followers but a low score and high bot activity should be disregarded.
- A project with 50k followers, a high score, and minimal bot activity merits further research.
This strategic approach to finding crypto gems focuses on investment volume, project attractiveness, investment quality, social media evaluation, and follower analysis. By meticulously applying these steps, you can identify promising crypto projects with high potential for profit, steering clear of less viable options. Remember, thorough research and due diligence are key to success in the volatile crypto market.
Step 6: Evaluating Project Stages for Crypto Investment Gems
To effectively multiply your capital in the crypto market, it’s crucial to identify projects at various stages of development. Here’s how to evaluate the potential investment quality based on the project’s current phase:
Early Stage
- Characteristics: The project’s development direction is outlined, with announcements about initial investments starting to surface. The community begins to form around the project. This stage offers a potentially lucrative entry point, though it might take years to realize profits.
- Gem Indicator: High potential but requires patience and a long-term perspective.
Middle Stage
- Characteristics: The project advances towards or has recently launched on the mainnet. Community growth accelerates exponentially, accompanied by significant new investment rounds. This is the prime time to invest, as it may offer quicker returns compared to the early stage.
- Gem Indicator: Optimal entry point with a balance of risk and potential for quicker gains.
Market Entry Stage
- Characteristics: The project is about to launch a token, NFT collection, or another profit-sharing mechanism. The community has expanded significantly (100-500 thousand social media followers). Investing at this stage is akin to catching the last train car—potentially profitable but with higher risks of missing out or facing losses.
- Gem Indicator: High risk and reward, suitable for those willing to take last-minute opportunities.
Quick-Check Gem Checklist
🟢 True Gem:
- Investors include Paradigm, Binance, a16z.
- Raised over $50 million.
- In the early to middle development stage.
- High-quality social media following with industry whales.
🟠 Average Prospect:
- Investors include Binance, OKX, KuCoin.
- Raised over $10 million.
- In any development stage, preferably early or middle.
- Reasonable social media follower count.
🟥 Low Potential:
- Unknown or no-name fund investors.
- Raised less than $3 million.
- Early or market entry stage.
- Low-quality social media presence, with over 50k followers and bots, and a social score below 200.
Using this information, you can independently conduct preliminary research and identify potential crypto gems.
To further enhance your project evaluation skills and consistently achieve significant returns, I regularly publish educational and analytical content. This guidance aims to empower you with the knowledge to make informed decisions in the dynamic crypto market.