A 10-Step Guide to Find Hidden Crypto Gems for 100x
1. Chart Analysis for Bullish Trends
Begin your research by scrutinizing coin price chart. Confirm that the crypto project's chart demonstrates a pattern where prior resistance levels transform into reliable support. This consistent trend signifies market confidence and can be a positive signal for potential investors.
2. Low Market Cap
Look for hidden gems with a market cap under 50 million, and avoid projects that were part of the previous bull run. This helps filter out potential issues like abandoned projects with old holders who are waiting to sell.
3. Clean Smart Contract
Verify the integrity of the smart contract. Ensure it doesn't contain scammy features such as minting, excessive taxes, or wallet freezing (unless on the testnet). Utilize tools like GoPlus Labs, Quick Intel or DexTools for verification.
4. Centralized Exchange Presence
When evaluating cryptocurrency projects, avoid those already listed on tier 1 exchanges. Instead, focus on reputable tier 2 options. Look for projects that appear on multiple well-regarded exchanges. Ideally, the rate of new exchange listings should align with the project’s popularity, with around one new listing per month being a positive sign.
5. Team Transparency and Experience
Ensure that the team is doxed and possesses valuable experience in reputable companies, contributing to a solid foundation for the crypto project. However, this requirement does not apply to entirely decentralized or DeFi projects, as well as community-driven initiatives. For example Memes, DEXes, or privacy-focused chains.
6. Fundamental Clarity and Utility
Ensure that the crypto gem possesses a fundamental purpose or utility. Projects with a well-defined use case are more likely to maintain sustainable value and attract long-term interest. A clear and robust foundation, rooted in a fundamental purpose, not only enhances the gem’s credibility but also contributes to its longevity in the dynamic crypto landscape.
7. Active Development and Community Engagement
A strong indication of a crypto gem is active development, visible on GitHub repositories. Additionally, ongoing communication through AMAs (Ask Me Anything sessions) or active social media engagement demonstrates commitment and transparency.
8. Brand Professionalism
Scrutinize the project's brand—look for a professional appearance, a well-thought-out name, and a polished online presence. Official social media profiles should avoid grammar mistakes and refrain from engaging in speculative price discussions. You can also check X (Twitter) account page using TwitterScore to have more detailed overview.
9. Good Tokenomics and Vesting
Examine the tokenomics on project's whitepaper or CryptoRank, especially the unlocking schedule. Gradual releases suggest stability, while poorly timed unlocks may cause market volatility. Understanding these aspects is vital for evaluating a project's sustainability. Also, be wary: projects with higher VC allocations and lower public allocations tend to perform less favorably. While fair-launch and proof of work coins perform best in the longterm.
10. Dig Deeper
Finally, go beyond the surface. Explore community forums, reviews, and independent analyses. This deeper dive can unveil insights that may not be immediately apparent, helping you make a more informed decision. You can also do a background check for project website using tools like WhoIs, TrustPilot and ScamAdviser.
By following these ten steps, you can enhance your ability to identify promising crypto gems with the potential for substantial growth.