High risk, high reward, bargain hunting "cheap" crypto coinsLets talk about tiny caps. As crypto continues to run, and get more expensive, everyone will be looking for the next big deal, the still cheap crypto to buy as there is less and less options as the market runs up.
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We need to discuss marketcap real quick because even though the first major site to service crypto is literally named after crypto market cap, it seems a lot of folks in crypto dont pay attention to it. I see too often some will say oh that asset is $500 each, thats too high, looks like I already missed the boat, but look at this cheap asset for $0.0001 and imagine if I own half a million of those and it goes up to $1, I think this is a common vision for crypto holders. But at the same time that asset for $500 which can be bought in fractions, may have a market cap of $100M while that asset for 0.0001 may already have a marketcap of $50B which makes the asset for .0001 50x more expensive than the asset for $500. Keep in mind the amount of money it takes to get an asset to run from $50M to SEED_TVCODER77_ETHBTCDATA:5B versus the money it would take to move an asset from a SEED_TVCODER77_ETHBTCDATA:5B to $500B (half a trillion dollars), its a lot more fuel needed for that engine.
Additionally, if an asset had a $50B market cap already and cost .001 cent and it ran to $1 that means if we took every coin that exists for that crypto, multiplied it by the total coins and it would have a valuation of $50 Trillion dollars, to put it in perspective all USD digital and phsyical in the world right now is worth about $30 Trillion. So the idea that this asset that has almost no real usable purpose other than trading should be worth more money than all the USD's in the word is absolutely absurd. That said, we still see things like XRP that has no traction in getting banks to use a public blockchain for remittance, has a valuation that is more than goldman sachs or HSBC, both which are feature rich banks with dozens of revenue streams beyond remittance and billions in profit every year, which is often shared with sharefolders, none of which XRP has. Its clear XRP is already hugely over priced but crypto populous doesnt seem care about the market cap, they see $1.80 as cheap, they dont see $180B is expensive.
That said I would still day trade XRP though i tend to prefer XLm because it runs many times when XRP does but tends to run harder.
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Now why did I just talk about all this stuff that hopefully you were already aware of? Back to the point, cheap crypto and the likelihood that more and more people will be looking for it as this market continues to run. So actual cheap crypto is crypto with a low market cap, but I think from a trading aspect, because so many people in crypto do not understand market cap and envision that penny coin going to $1, anything under $1 is likely to perform better.
I primarily use Coinbase so this is not exhaustive, I would recommend you check low caps on the exchange you use, but here is a list of low/tiny caps I pulled up yesterday, already had a 70% run on POLS. But there is something you need to be aware of with these low caps, most of them are also low volume. This means you cant just go buy $20k to $100k of these assets at once, you will have a ton of slippage and start off negative right off the bat, the order books and the volume just is not there. So for these assets, you have to slow play acquire them and be prepared for high risk, high volatility and the potential for high reward. A lot of these, like many if not most crypto are kind of, or are, total garbage, but again no one seems to care in crypto, they just want a bargain.
Here are a list of low/tiny caps, with cap rate, circulation, cost and avg daily volume right now. Anything with less than MIL:1M daily volume is pretty much un-tradable, once the daily volume is MIL:1M they are somewhat tradable and once it reaches $5M daily volume it starts to become fairly tradable but the price will have already run a bit by then most likely.
GYEN - $14M cap 2b circ - 0.006613 each $17k volume
SHIPPING GETTEX:18M cap 10B cirv 0.008111 $3m vol
LIT $52M cap 100M .94cents - $5M volume (only 50m in circ)
BNT $90Mcap 10M circ .75 each 8M volume
INV $21M cap , 615k circ, $300k daily volume, $35.81 each
00token (00) $19M cap 1B circ, 1M daily vol
Muse $6M cap, 1.58m daily vol, 950k muse, 508k in circ, $13.15
chrono.tech (TIME) GETTEX:17M cap710k circ, $24 each, 228k vol
FIS $41M cap 149M .40 each $9M vol
ACS GETTEX:68M cap, 88B circ, .0018 price, $1.44M vol
MLN GETTEX:48M cap 2.6m supply, EUROTLX:4M daily vol, $18 each
GST GETTEX:48M cap 2.36B supply, $12M vol
ASM TRADEGATE:56M cap 1.5b circ, 0.03 price, $19m vol
FORTA $71m cap 1b circ, .14 price, $7m vol
POLS $72M , 100M circ, .68 price, $20M volume (just ran up 70%)
Remember these are high risk, generally low quality projects, low volume coins and the play here is trying to get in on the actual cheap coins, before everyone else rushes to do the same. Some or even potentially many could be de-listed which could cause near total loss if you are sitting on one, this is not for those looking for low risk.
This is not investment advice, its also one of the higher risk strategies I have pushed, I would urge you to tread lightly here.
If you know of assets sub $100M market cap that I missed here, feel free to add it in the comments for others.
Happy bargain shopping.
