In this post we will be talking about how you can invest in Low Cap Coins for maximum returns. Over the past year, the crypto industry’s market valuation has been magnified by hundreds of times, and Bitcoin alone has outperformed the NASDAQ 100 by a factor of ten. So, can you become a millionaire with cryptocurrency
Yes, it is true!
Several people have spoken out openly about their desire to amass seven figure fortunes through crypto investments. But it’s a risky industry, and you can’t just sit there.
RISK-REWARD IS KEY: The link between risk and reward is depicted in investment theory as a well-known phenomena. Basically, the more risk you take, the greater the potential gain, but also the greater the potential loss. In this regard, the crypto market is riskier than the NASDAQ 100, which is why, to put it simply, it has outperformed it in recent years.
There are numerous additional reasons, but to keep things simple, we’ll focus on this one. Volatility is a risk proxy that is frequently utilized; so, we may say that the more volatility there is associated with an investment, the greater the potential gains and potential loss.
As a result, the cryptocurrency market is more volatile than the NASDAQ 100. Within the cryptosphere, the same theory can be applied.
Large market capitalization coins, such as Bitcoin, Ethereum, Cardano, and Solana, are less volatile and thus less risky than the top 100 crypto currencies, which are less risky than small market capitalization coins.
We define tiny market capitalization as a market cap of less than USD 100 million. However, just as there is more possibility for crypto to beat the NASDAQ 100, there is more potential for a tiny market cap coin to perform 100x, 1000x, or even 10,000 times better than any high cap coin.
This is why, this year, tokens such as Shiba Inu have generated returns of more than 800,000 times since November 4th, exactly one year ago. That equates to 80,000,000 percent. That is, if you had invested USD 1 in that token last year, you would have made USD 800,000, and if you had invested USD 10, you would have made USD 8 million. Shiba Inu presently has a very huge market cap, therefore don’t expect to obtain that kind of return from them. This is an extreme instance, and for one investment like this, you may have to make tens of others that fail.
TIMING IS KEY: Shiba Inu’s token value did not move for at least three months after it was first published in November of last year, according to historical price statistics. Many people may have assumed it was a hoax or a defunct project at the time. So nothing happened until early this year 2021, and then it rocketed off to the great heights we know, with many ups and downs in between. As an investor, your goal should be to invest before the market takes off. Your aim is to uncover projects with high potential before everyone else has invested in them. This may sound apparent, but you’d be shocked how many people who invest with the trend are frequently late to invest. Don’t get me wrong: investing with the flow can still yield incredible returns, but not 1000 times or 10,000 times.
Consider the case of ElonDoge: This token, like Shiba Inu, has been flat over the last four months despite having an intriguing concept with NFT and self enhancing mechanics. However, it has recently increased by an astounding 1500 percent in just a few days. To be among the first investors, you must look for the proper projects, dig deep, and find them yourself. You should also understand when to sell, if not more so.
When it comes to purchasing and selling, timing is everything. As previously said, small market capitalization is quite volatile; it can go up as well as down very quickly. Setting a goal for yourself is a wonderful method. Assume you invest in a token at a price of USD 1 and have determined for this project that a 10x return is what you want to achieve in a specific timeframe. Then stick with it. You should sell the token when it reaches 10 dollars. Unless fresh information has arrived and your assessment of the token’s potential has shifted. Returning to ElonDoge, after a recent 15 times performance, it then plummeted by 50 percent.
An investor who set a target of 10 times would have sold at a greater price than the current price. A 50 times target investor would still be interested.
But who knows, this type of token might simply see another 15 times increase in the near future, and so on.
MARKETING IS KEY: There are thousands of low market capitalization projects out there, so even if a project is fantastic, it will require significant marketing efforts to spread the word and stand out from the crowd. Even terrible ventures can flourish with great marketing because investor sentiment is crucial in crypto. A significant event occurred in the traditional equities market in January 2021: the short squeeze of GameStop. For a time, retail investors built such momentum by buying enormous amounts of this stock that it appeared unstoppable. This drive was largely inspired by a subreddit post that received millions of views. In a nutshell, marketing and communication sparked the buying frenzy. So consider whether a project has the potential to generate significant marketing momentum, rapidly build its audience, communicate with clarity and consistency, leverage a valuable network, and connect with influencers. For example, at Rebellion Protocol, we are planning a massive marketing push for our token launch, which will include AMAs, conversations with influencers, PR with a marketing agency, community marketing events such as the Rocket Pool challenge, communication strategies on major social media platforms such as Telegram, Twitter, and Reddit, and flooding coin finding websites.
BONUS DIVERSIFICATION: This is a fundamental guideline of investing: don’t put all of your eggs in one basket. However, what is the diversity that is best suited to you. It is determined by the total amount of your investment as well as your risk tolerance. As a general rule, the more you diversify, the lower the risk associated with a single project, but you also lower the rewarding impact of a single project on your whole portfolio.
So, pick the best diversity for you. However, if you just have 10,000 dollars to invest, don’t invest in 50 projects; it will be too difficult to handle and will restrict your upside potential as the performance will be an aggregation of the performance of the 50 positions, and its unlikely you can cherry pick 50 good projects. Contrary, if you simply invest in one business, you will have no diversity and will rely solely on the success of that enterprise.
30 to 50 percent of the portfolio in major players like Bitcoin, Ethereum, Binance coin, or Cardano
20 to 30 percent in top 100 coins, hands picked according to current trends for example NFT, Defi, interoperability, etc.
20 to 30 percent in Gems, cherry picked by doing extensive research. We believe our project Rebellion Protocol is a good addition to any portfolio, in the Gem category.
As a reminder, in crypto only invest what you can loose. This post is not financial advice. Cryptocurrency projects are highly risky. Do your own research before investing in any projects
ABOUT REBELLION PROTOCOL: The Rebellion Protocol is the world’s first systematic exponential growth cryptocurrency initiative that is entirely driven by the community.
The project is inspired by a simple question: Can we collaborate to develop a project that is so powerful that it raises an entire community to financial freedom and, as a result, renders the present financial system obsolete?
The solution was to create a cryptocurrency with the kind of systemic growth that has a ripple effect throughout its entire ecosystem, that is self-enhancing and exponential, and that demonstrates tremendous velocity and moves with unstoppable power. This is what we’ve been working on over the past year.
If you’re looking for a high potential 1000 times token, this could be it. But don’t take our word for it; conduct your own study, assess the dangers, and understand your investment profile.
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