In my last post "Sell The News And Buy The Dip 😎 Cryptonator`s Ultimate Crypto Investment Guide", I explained my crypto investment strategy. A crucial part of it is finding a low market cap gem. Let me give you a detailed example of how to hunt a low market cap gem by analyzing STATERA. Has STATERA the potential of being the next low market cap gem?
Before we start to hunt for the next low market cap gem, I want to point some things out that are really important when it comes to investing in crypto.
First of all, hoping to make quick money, while not understanding cryptocurrencies at all is a really bad idea! Please, before you invest in cryptocurrencies, learn as much as possible about them. Publish0x is a good place to start with it!
Then you need to have some savings. I try to keep half of my portfolio in Bitcoin and Ethereum. I consider the other half of my portfolio my investments. In this way, I diversify my portfolio and lower the risks. Let`s suppose if have $1000 in total. I keep $500 in Bitcoin and Ethereum, so I have $500 to invest. I don`t invest my $500 in just one crypto, I invest $100 in five different altcoins. If just one of them is the 100x low market cap gem then I haven`t lost anything if the other four are worth nothing in the end. Diversify!
Also, please keep in mind that my intention in this post is not to replace your own research. In the end, you alone are responsible for your own investment decisions and no one else. That´s why it is so important that you always do your own research ("DYOR").
Finding The Potential Gem
In my mind, the perfect crypto investment is the so-called low market cap gem. The low market cap gem is worth an investment because it promises the biggest gains for the investors. Market capitalization means the value of all coins and tokens available.
So, how to find the potential low market cap gems?
Well, it`s quite simple. Just follow the crypto news channels and crypto influencers. The Statera Project is a good example. I am not only writing a lot of stuff here on Publish0x, but I also read a lot of stuff. There are already a bunch of good authors on Publish0x. So as I was reading some Publish0x posts, I have discovered the official Statera Blog.
This is how simple the finding of a potential low market cap gem starts. I thought this project looks innovative, so STATERA got my attention.
I couldn`t find any information about STATERA´s market cap on CoinGecko but according to CoinMarketCap, STATERA is located on market cap rank #2255. Well, that´s definitely a low market cap rank but is it also a gem?
That`s the important question and to find the answer to that question, we need to gather as much information as possible about STATERA and evaluate this information.
What Is STATERA?
STATERA is a very young project (May 2020) that describes itself as "a smart contract powered Indexed Deflationary Token (IDT), which synergizes with a trustless and community-driven portfolio of class-leading cryptocurrencies."
So, it wants to operate as a community-focused and community-driven digital asset. This means that it is a fully decentralized asset in every sense of the word.
Furthermore, STATERA wants to decrease the extreme volatility of cryptocurrencies on the one hand and increase positive price pressure in digital asset investments on the other hand.
STATERA provides every investor with simple and effective ways to invest in digital assets by lowering the entry-barrier to more advanced investment tools. STATERA synergizes with a trustless and community-driven portfolio that includes $WBTC, $WETH, $LINK, $SNX and of course also $STA.
“With a possible annual yield of over 38%, on the low end, our funds are incredible products. As it stands, our funds are one of, if not the most, profitable places to hold your cryptocurrencies.”
STATERA currently focuses on two options for investing in its ecosystem. The community-driven portfolio that includes $WBTC, $WETH, $LINK, $SNX, and $STA is called the Phoenix Fund. The second option is a simple fund that includes $STA and $ETH.
Portfolio management is completely automatic and free. So investing in a fund is simple and easy.
I found this information on various sources, from Publish0x to Twitter. The most important source is, however, the whitepaper. A whitepaper should tell potential investors everything they need to know about the project. Reading whitepapers is not very exciting but in the end, it is an essential part of #DYOR. STATERA`s whitepaper informs potential investors concisely about the complex project and it also presents its philosophy.
STATERA Token Metrics
STATERA (STA) is an ERC-20 token running on the Ethereum Blockchain. You can view the contract here on etherscan.
STA is a deflationary token as STATERA`s core algorithm is designed to ensure that for every transaction, 1% of the transferred amount is burned automatically.
The initial supply was 101,000,000 STA. The total supply right now is 88,150,486 STA. 12,849,514 STA of the supply has been burned.
Market capitalization is with only $3,320,364 relatively low. At the moment, STATERA has just 2,235 holders.
STATERA`s price today is $0,0375. At the moment, STATERA is already tradable on several exchanges like Uniswap, HotBit, Hoo, Bomboorelay, and Saturn. STATERA is going to be listed on more exchanges in the near future.
Since STA is an ERC-20 token, it is supported by all cryptocurrency wallets that support ERC-20 tokens. I recommend Atomic Wallet to store your STA.
What is the utility that STATERA is bringing to the system?
Now it is about evaluating the collected information to answer the question if STATERA has the potential to be a low market cap gem. To evaluate the potential of a coin, always ask yourself this: What is the utility that the coin is bringing to the system?
You need to find the answer to this essential question. It`s not only about the utility that the coin is bringing to the system right now but it is also possible new use-cases in the future.
As a smart contract powered Indexed Deflationary Token, STATERA already found an important use-case in the Balancer Pool. The Balancer Pool is an automated index fund. All tokens included in the fund like the five in STATERA`s Phoenix Fund maintain a share of the portfolio's value through the use of a smart-contract portfolio manager. When an asset's ratio increases relative to the others, the portfolio will rebalance itself by selling the token that has gained value automatically. This is probably the most important use-case of STATERA.
At the moment, there are only two STATERA index funds. So it is highly possible that the number of different index funds will be increased in the future.
Furthermore, I believe that if you are looking for ways of diversifying your portfolio, STA is the right choice because of its unique deflationary characteristics. The deflationary STA token can diversify every portfolio because of this unique deflationary features that no other token has. So I can imagine the deflanionary STA token being a token that is widely used to diversify portfolios. As I mentioned at the beginning of my post, diversifying your portfolio is important to lower the risks.
The STATERA project definitely has its strengths also in the world of DeFi where it could be used as reserve collateral because of its deflationary characteristics. With a rising market capitalization, more transactions will take place. When more transactions are taking place, more tokens of the total token supply will be burned. This will lead to higher demand and a stronger deflationary effect. So it could replace stable coins as collateralization assets in the future of Decentralized Finance.
Another idea is that the STA token already is a fully decentralized asset in every sense of the word. That`s why I can also imagine some kind of STATERA`s own Decentralized Autonomous Organization (DAO) in the future.
My Final Conclusion
STATERA is a very young project that is definitely worth to have a closer look at. With its deflationary characteristics and its use-case as an Index Fund Token combined with possible future use-cases, STATERA has the potential of being a low market cap gem. I will use STATERA mainly to diversify my portfolio.
Nevertheless, please keep in mind what I wrote at the beginning of my post. My intention in this post is to raise your awareness of this innovative project called STATERA and my intention is not to replace your own research.
I hope I could provide you with some interesting and useful information about STATERA.
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