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!
Has Civic Been Waiting For A Moment Just Like This?
Civic is the creation of Vinny Lingham, who formerly founded Gyft, a business he later sold for approximately $50 million, if I remember correctly. Vinny became interested in Bitcoin during his time with Gyft and actually added BTC as a payment method in an attempt to resolve the tremendous amount of credit card fraud they were experiencing at the company. The implementation of BTC actually turned out to be a very good move and brought an end to the majority of the problems they were experiencing. Anything that has the ability to help a business owner improve his business also has the ability to capture his attention. This is exactly what happened with Vinny, sending him down the Bitcoin rabbit hole. Vinny went on to make some pretty astounding BTC price predictions, which later coined him the nickname, ‘The Bitcoin Oracle’.
Civic launched their ICO just prior to the ICO frenzy that rocked the majority of 2017. One thing that Civic got right was to shift the majority of their capital from ETH into USD just after the finalization of their ICO. This gave the project a wealth of resources, allowing them to continue paying the team during the tough years of 2018 and 2019. Civic is essentially an AI powered identity service that aims to verify a user once and then allows users to interact based on one initial identification process, thus making ongoing KYC with multiple platforms and services redundant.
Some may feel that this is a bit controlling, as the entire model is based upon KYC. However, that is the way things are heading. Many choose services that do not require KYC but the day is coming when that will become increasingly difficult. So, would it rather not be better to disclose your details once, to a company that will authorize you and enable you to interact based on that authority? This is the argument that may cause Civic to appear to be the better option in time to come. Since covid, it is very clear that this type of model is going to become the default design. Love it or hate it, this type of interaction is definitely on the way, making Civic a potentially good investment.
One ID verification that encrypts data and then enables users to interact freely without multiple barriers of entry. It seems logical that such a model will eventually take off and that is when I would like to be already holding a decent bag of CVC!
Civic In The Charts
CVC has performed relatively well in the recent bearish trend and is showing signs of a significant trend reversal. Looking at the chart below, it becomes very clear that there is a beautiful double bottom in play.
The neckline has been broken and it is looking very likely that this will be a valid pattern, potentially triggering some significant upside. The market cap of CVC is $226 million at the time of writing. I must admit that I do prefer smaller market caps but there is definitely a lot of room for a lot more upside and growth. I am not necessarily a big fan of Civic but I don’t allow biases to rob me of an opportunity to make bank. There is potential and I will be watching and slowly building up a small stack of CVC.
Always remember that these are my my views and not investment advice. Do your own research and make your decisions accordingly. All the best!
Life Changing Gains Or Average Gains?
When it comes to alts and especially micro caps, you have to answer a very simple question for yourself. Do you want to experience some decent gains, or are you looking for gains that will be so significant that they can actually change your life? Getting to the heart of this is the first step. The information I am about to share will test that decision if you answered in favor of massive gains. It may indeed cause you to change your mind because the risk involved here is immensely high. It is important to note that this is not investment advice and you should immerse yourself in your own personal research before making any decisions.
This is what I have gleaned through being in this market for the past 7 years. It feels more like 3 though, time really seems to be accelerating at an ever increasing pace. Before I address the risk factor, it is important to look at another element that often wears investors down and ultimately pushes them out of the game.
Time Is A Powerful Tool
The simple yet highly powerful principle of time is one of the key elements here. This is true of any market and true for the entire Crypto market as a whole. Significant time in this market should in most cases see positive returns. However, When it comes to smaller projects, this is often a compulsory prerequisite that can go on for extended periods. Even though a specific project can have massive potential, it more often than not requires a very long time for the market to identify it and then validate it with price appreciation.
This can be seen in a project like Polygon and more recently, Solana. Polygon, previously known as Matic sat at the $0.02 level for absolute ages before violently breaking out above $2! In the time that investors are awaiting recognition, the price can either remain largely unchanged, or suffer highly volatile swings. These swings can sometimes see projects sink to unimaginable lows before suddenly rising into new levels through periods of crazy price discovery. What is the point I am making here?
Simply put, you don’t get to decide the timeframe. You have to make a prior decision to sit out out this period of necessity. You also need to decide whether or not you will add to these positions when prices drop significantly. In other words, you need to have conviction. Forget about diamond hands, that comes second to conviction. It is your unwavering conviction that empowers you to hodl when all seems lost. Can you stay the course and have you done enough research in order to build a strong conviction in your decision?
The Death Rate
It is no secret that many altcoins fade away into obscurity and while they may still exist, the trading volume and blockchain activity are synonymous with a mall during lock down. The value and market cap of these projects is also for the most part absolutely erased. This is unfortunately the risk that is always looming in the background and can even happen to a good project, in the event that the team just become weary in trying to establish their project. The risk of losing the majority of your investment increases significantly when you begin to invest in unknown projects.
This is unfortunately the price one must pay because once stability is established, gains are very much restricted, though exceptional projects can sometimes still surprise further. Investors in altcoins and particularly micro caps need to consider these points very carefully before taking the plunge. My approach is always to start with a minimal investment and to average in further on the road to higher levels. If the trend is up and I buy the dips, it usually works out very well for me.
As mentioned earlier this is not investment advice and doing your own research in this particular sector is absolutely imperative.
So What Is Hi Dollar & Who Is Behind The Project?
Hi Dollar hit the Crypto space a few months ago and has since reached in excess of 1 million users. Hi Dollar is a token based monetary system that aims to allow users to transfer funds via already utilized mobile apps such as Whatsapp, Telegram and Viber. There is no actual Hi Dollar app, thus allowing users to operate within the structures of already large and utilized systems and networks. The team aims to onboard 1 billion users in the next 2 years and looking at how easy it is to join, they might actually secure a fair chunk of that. The Hi token is currently an ERC20 token but that looks set to change sometime in the future. The referral program is also quite attractive, which will inevitably play a very significant part in growing this community. We will take a closer look at the referral program and daily rewards later on, as this is the current draw card in my opinion.
Even though there does seem to be a bit of a pyramid feel to this project, there are some real heavy weights involved here. Stefan Rust is the former CEO of Bitcoin.com and has joined up with a handful of other very influential names in the Crypto space. Sean Rach, the former CMO of Crypto.com is also involved and specializes in marketing and is passionate about FinLit. Stefan and Sean appear to be the face of Hi, with Sean leading the way with social media interaction amongst the community.
It does seem strange that such prominent figures would risk their reputation by launching a scam project, which does provide some hope to there actually being some substance here. Doing some research online, proved that these team members are indeed legit in terms of being real people who have actually achieved the accomplishments stated by Hi Dollar. Personally, I would not invest in purchasing Hi tokens and fortunately I don’t actually need to! This is where the daily rewards come in!
Daily Rewards & Referral Program
So, in order to join Hi and start earning daily rewards, one only needs to join via Telegram or Whatsapp. Viber and other apps are soon to be added as additional alternatives. There is only KYC required for withdrawals and can be done on the Web App at a later stage. Users can in the meantime accumulate Hi Dollars for free every 24 hours. Claiming the daily reward of 1 Hi Dollar literally only takes about 10 sec each day and is why I reckon its worth the time. Currently, 1 Hi Dollar is valued at $0.87 and has been as high as approximately $1.20, which is great for the amount of time needed to earn it. Even if Hi Dollar fails, 10 seconds a day is no real loss. On the other hand, if it succeeds users are able to easily stack large amounts of Hi over time.
Currently, free rewards are locked up for a 12 month period in order to protect the price from dumping. Hi can alternatively be purchased on UniSwap and staked as well. Like I said earlier, I am only comfortable earning my free Hi at this stage until time in the market enables us to have a clearer picture regarding the future of this project. After a year from launch, I suspect there will be sell pressure as early adopters will be cashing in. Hopefully by this time, there will be more confidence and buy pressure as a result of staking and actually using Hi as cash.
This is where the team has to perform and create a powerful use case and validity for their token. Time will tell I suppose and one can only wait it out. Currently the Hi token trades approximately $200k per day, which indicates that despite free daily tokens, there are actually buyers in the market.
The referral program is pretty decent as well, which rewards you 0.5 Hi of every 1 Hi earned by your referrals. This can also add up over time. As I mentioned earlier, zero investment required, compounded by a few seconds a day is worth the risk in my book. I would definitely advise you to do some research, even if you are only choosing to earn free Hi.
This is by no means investment advice but me simply sharing an opportunity that came across my path recently. Thanks for the read, see you soon!
If You Are Not Seeking Out Gems You Simply Won’t Find Them
It may sound rather obvious but unless you are actively seeking out altcoin gems, you are not going to find them. You need to be studying price action, market cap and other metrics in order to actually identify potential gems. How else will you be able to spot them? Every now and again, when the market allows it, I go on a bit of a deep dive for potential altcoin gems. This will see me browsing through CoinGecko and some of the exchanges I utilize to find under the radar projects. I also use this time to see which projects are worthy of further investment and will add to existing positions if the conditions are attractive or even acceptable.
I was initially intrigued by Solana due to FTX adopting the blockchain. This encouraged me to begin investigating Solana, to see what might cause a leading name to choose SOL over ETH, BSC and other potential alternative blockchains.
What I discovered was rather impressive. Solana can process up to 50K transactions per second. At the time of writing my article on Solana, approximately 6 months ago, the average cost per transaction was $0.00001! The average fee at the time of writing this article is $0.00025, which is still super affordable. Scalability and cost efficiency are two of the most important factors to consider when seeking out a blockchain for mass adoption, or even just a significant user base. The ranking of Solana back then was 129, which when you consider that SOL just broke into the Top 10, only serves to confirm how this project has absolutely exploded in a matter of only 6 months.
I had initially thought that I had bought my first position of SOL at $3 but a dive into my history today revealed that it was actually approximately $0.24! In hindsight I sincerely wish I had bought more but at least I did manage to secure a position at those levels and am still hodling.
During the early days of FTX, the project formed a strong relationship with Binance, which they later u-turned on. This was one of the most important signs for me, as most projects will endeavor to leverage the Binance name in order to gain traction and rise to prominence. The move by FTX displayed that not only were they not that interested in riding the Binance wave but that FTX was actually challenging Binance for dominance. FTX were indeed aiming very high and they were choosing to build their DEX on Solana. Sam would need to have a lot of confidence in Solana if he was using it as the base layer to Serum as he challenged Binance for supremacy.
When you look at what the Solana blockchain is capable of and that big players such as Sam from FTX have chosen it as a base layer, it becomes pretty obvious that there is a bright future ahead. Assessing these facts and fundamentals lead me to take a very strong view in regard to Solana and Solana based projects such as Raydium, which I also wrote about 6 months ago.
The typical effect is now busy playing out on the top projects built on Solana. After DOT pumped, the projects built on DOT followed, such as Kusama and others. We are now seeing both Raydium and Serum pumping in excess of 30% today.
Congrats to my readers that chose to invest in Solana 6 months ago. To the content creators busy scrambling to push out content about Solana now, all the best! Thanks for reading.