I Have A Penchant For Micro Caps
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 first hand how other projects that started at zero, have gone on to become top tier coins and projects, offering tremendous value to the world.
This has not only been something that I have viewed from the sidelines but something that I have been actively involved in as well. Seeking out altcoin gems is something that really gets my attention. Generally I like to look for micro caps that are still in the range of tens of millions of dollars. Sometimes a project that has a market cap of $300 million to $600 million will also enter 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.
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. This is however dependent on the progress and development of the project. Simply throwing money at micro caps is rather foolish, even though you might happen to get a few right. The truth be known, many simply fade away into oblivion. Abandoned by developers and cast aside by disappointed investors, many small projects erode away quietly in isolation.
This is not the mental image you want to be associating with your investment, which is why doing your own research is imperative if you want to significantly decrease the risk of this scenario becoming your reality.
Two Of My Top Picks
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 managed to surge way beyond $3 and still manages to remain under the radar, even at the 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 had I 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 when it comes to 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 try and get in earlier and earlier on new projects that I believe have a potentially bright future. It is a dangerous journey to the top and definitely not for everyone. However, when you arrive, you really do arrive!
Solana is the second project that I wrote about numerous times and was strangely surprised that pretty much nobody was sharing my enthusiasm over this project. This project seemed to remain under the radar for an overextended period of time 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 again. I now visit all my micro cap allocations on a daily basis in order to identify any potential dark horses. Buying the dips of a micro cap project on a long-term uptrend is for the most part a pretty smart move and is 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 late comers 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!
Please remember that nothing mentioned here should be considered investment advice. DYOR, it is actually rather fun! All the best, cheers!
Getting through it bit by bit.