Why Micro-Cap Crypto Can Deliver 100X To 300X Returns

Being involved with Crypto for many years now has afforded me the privilege of witnessing coins like ETH surge from a few dollars to well over $4000 in May of 2021! I have also seen firsthand how other projects that started at zero have gone on to become top-tier coins and projects, offering tremendous value to the world. Seeing Solana go from a few cents to hundreds of dollars was absolutely incredible.

This has not only been something I have viewed from the sidelines, but also something I have been actively involved in. Seeking out altcoin gems really gets my attention. Generally, I like to look for micro-caps still in the tens-of-millions-of-dollars range. Sometimes, a project with a market cap of $300 million to $600 million also comes onto my radar. It all depends on what it is and who is involved. This can often be very risky but also extremely rewarding when things go as planned. Finding these gems is a rather extensive process. However, worth the effort.

The investment approach or strategy is very important here, which is why most people will only confess to losing money after investing in micro-caps. You have to be disciplined and diligent. Going all in straight off the bat is very dangerous and will often end in tears. My approach is to start very small and then to monitor the price action. If the price offers and warrants further entry, I will, in turn, continue building that holding over time.

How I Build Micro-Cap Positions Without Going All In

Essentially, you want to build a position in conjunction with the market. Don’t get ahead of yourself or the market. This is important for effective risk management and must be practiced, especially with micro-caps. This is how I build positions: I don’t go all in at once. A liquidation event, however, is another story.

This, however, depends on the project’s progress and development. Simply throwing money at micro-caps is rather foolish, even though you might happen to get a few right. The truth is, many fade into oblivion. Abandoned by developers and cast aside by disappointed investors, many small projects quietly erode in isolation.

This is not the mental image you want to associate with your investment, which is why doing your own research is imperative if you want to reduce the risk of this scenario becoming your reality. Research couldn’t be more important than in the world of micro-caps. It’s imperative and non-negotiable.

Unibright(UBT): A 300X+ Crypto Winner

Unibright was a project that I first picked up at approximately $0.01 at the tail end of 2019 and wrote about in 2020. This project has surged well beyond $3 and remains under the radar, even at its current market cap of $562 million. UBT is currently trading at $3.78 at the time of writing and actually surpassed $4 yesterday, making it a 400X profit for me. This is what I would have chosen to sell, which you know I didn’t. 

This is a very long-term hold for me, largely due to the powerful partnership opportunities that I foresee for Unibright. Looking at the graph above, you can see that potential loss at this point is basically an impossibility. This is a textbook example of what I aim to do with alts. I want to get in on the ground floor, long before anyone even has so much as a whiff of moon dust. It has become my obsession to get in earlier and earlier on new projects, I believe, that have a bright future.

When you find a micro-cap in its formative stages, you can perhaps use a heavier hand. However, always be prepared for the worst. You need to be able to take advantage of heavy dips and continue to dollar-cost average. Move in conjunction with the market as it provides opportunities. It’s also important not to get overconfident when things are going your way; anything can happen at any time.

Solana (SOL): From Under $1 To Massive Gains

It is a dangerous journey to the top, and it is definitely not for everyone. However, when you arrive, you really do arrive! That is what no-coiners don’t seem to understand. As an altcoin investor, when you mention gains, the typical no-coiner only envisions a few hundred percent at most. However, in many cases, it’s closer to thousands, and even tens of thousands of percent.

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Solana is the second project I’ve written about numerous times, and I was pleasantly surprised that almost no one shared my enthusiasm for it. This project seemed to remain under the radar for an extended period, in my view. Even when SOL broke the Top 30, there was no real hype or attention. This is somewhat strange, but I am sure that the Solana enthusiasts appreciated the opportunity to load up on even more cheap SOL!   

I purchased my initial SOL at approximately $0.30 quite early on in 2020 and only wish I had bought more. This is a mistake I have dedicated myself to never repeating. I now review all my micro-cap allocations daily to identify any potential dark horses. Buying dips in a micro-cap project on a long-term uptrend is, for the most part, a pretty smart move, and it’s how I now build all my positions in this sector.

There is likely to be a very short period now where Solana will trade at a discount to recent highs before edging higher. Likely a fairly good time for latecomers to pick up some SOL. Let me know of any micro-caps that you believe have the potential for significant growth. I would love to hear your ideas!

Final Thoughts

Micro-caps are highly risky and should not be considered by new or inexperienced investors. Furthermore, always ensure that you are not in a position to lose more than you can afford. Please remember that nothing mentioned here should be considered investment advice. It is always crucial to DYOR. All the best! See you next time!