Are you A HODLer or are you a trader? Well, I would consider myself a HODLer in the first place but sometimes I also trade and invest. When I invest, I follow some basic guidelines. Here is my Ultimate Crypto Investment Guide.

Save Some Crypto

If you haven`t saved some crypto yet, this should be your first step. You need to have some crypto savings to be able to trade and invest.

I hope that you are already earning some crypto on Publish0x. One way is earning some crypto and another way is to buy some crypto with fiat on popular exchanges like Coinbase or Binance. 

Just don`t put your entire life savings into crypto if you are not willing to lose it. 

Half of my portfolio is Bitcoin and Ethereum. I consider the other half of my portfolio my investments. I may lose some of my investment but I am willing to take this risk. Why? Let`s say that I have $500 to invest. I don`t invest 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.

In this way, I diversify my portfolio and lower the risk of losing everything.

Another thing is to use the time of saving some crypto for learning everything you need to know about cryptocurrencies.

One thing is for sure: Hoping to make quick money, while not understanding cryptocurrencies at all is a bad idea! Please, before you invest in cryptocurrencies, learn as much as possible about them.

Find The Low Market Cap Gem

With some crypto savings, you are ready to find the perfect crypto investment. 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 cap means the value of all coins and tokens available.

So, the question is where to find the low market cap gems that you can potentially invest in?

Well, it`s quite simple. Just follow the crypto news channels and crypto influencers. 

Another place you can go to is GoinGecko. The benefit of CoinGecko is that it lists down cryptocurrencies in decreasing order of market capitalization. Look for coins with a low market capitalization.

When a coin or token with a lower market cap gathers your attention, you can start your own research.

Always Do 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"). When you read just one article or when you watch one single video, then you haven`t done your own research. In this case, the person who wrote the post or made the Youtube video has done the research for you.

So doing your own research actually means reading a lot! You need to have as much information as possible from different resources. If you have done this you have finished your own research.

Evaluate The Information And Invest

 Now that you have done all your own research, it is about time to evaluate the information to make a final investment decision.

To evaluate the potential of a coin, 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. You should find the answer to this question in the project`s whitepaper.

If you don`t find any use case at all in the whitepaper then you can throw it directly in the trash can and move on.

A whitepaper should tell potential investors everything they need to know about the project. This is the reason why a project which doesn’t have a whitepaper shouldn`t be considered at all. Reding whitepapers is not very exciting but it is an essential part of DYOR.

Now let me give you a concrete example. I earned my first Atomic Wallet Coins (AWC) in May this year. At this time, the only use case for AWC was cash-back for using the inbuilt exchange and a signup bonus. That was it. 

When I heard that AWC will become stakable with up to 23%, I also invested in AWC. I thought that this is an amazing new use case for AWC that will be adding a lot of value to the coin. Atomic Wallet already was famous for staking and AWC should have the biggest staking rewards from all staking coins. About two months ago, one AWC was worth around $0.20. Now AWC is worth more than $1.60!

Other examples are the oracles Chainlink, BAND, and Tellor. Decentralized projects are the ones that I believe stand to make significant gains and provide very interesting passive income opportunities over the coming years. All Decentralized Finance applications need price feeds on token swap and loan collateralization process. They all need to use oracles like Chainlink, BAND, and Tellor and this is what makes these oracles so precious. For this reason, I invested in oracles.

A third and last example is the Coinbase effect. About one month ago, I bought some Cardano (ADA) because it will become stakable on Coinbase! I think that the Coinbase-effect combined with the new staking feature will result in a nice pump. The last time we could observe the Coinbase-effect was when Algo was listed two weeks ago.

So analyzing charts is nice but not enough in my opinion. Most important is gathering and evaluating information.

Don`t FOMO

Last but not least, be cool when investing in crypto and don`t FOMO!

FOMO is an important term in crypto space and means “Fear Of Missing Out.” This feeling is especially prevalent when a cryptocurrency rises in its value significantly over a relatively short time. It can be described as a feeling of anxiety that other people are getting rich while you are missing out

The problem with FOMO is that your investment decisions are based upon emotion instead of logic and reasoning. It can often lead to a situation where trades are made for an asset that is overpriced, incurring much greater risks of financial losses.

So don`t FOMO, be cool. 😎

When a cryptocurrency rises in its value significantly over a relatively short time then you are already too late. FOMOing in is dangerous.

Final Words

So this is my investment strategy when I hunt the next low market cap gem. 💎

I hope I could provide you with some interesting and useful information about crypto investments and that you will find the next profitable low market cap gem.

Thank you guys as always for reading, liking, following, and tipping 👍

If you like, you can also follow me on Twitter.

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