What are Hidden Crypto Gems? A Full Guide

Gem. When we talk about jewelry, gems are always part of the discussion. Their colors and unique attributes make them a fine addition to any jewelry piece.

There are also gems in cryptocurrency. They are often hidden and underappreciated. 

This blog post will discuss more about gems and how you can find them. 

What are Crypto Gems?

A gem in cryptocurrency refers to low market capitalization coins that are not popular. Despite its low-cap status, it has huge potential to be successful in the crypto market. 

Some crypto coins or tokens become gems because they are under development. For the most part, these gems are not easily visible to the public eye.

The beauty of gems in crypto is that they can increase their value by ten to a hundred times its original price. 

Crypto enthusiasts who devote a significant amount of time looking for crypto gems are known as gem hunters.  

Where Can I Find Hidden Crypto Gems?

Looking for a hidden crypto gem means racing against time to find it before it explodes. Once the coins or tokens enter the mainstream crypto network, it will be too late already. Here are three places where you can find crypto gems. 

Tracking Websites

There are sites that track the prices of cryptocurrencies such as CoinGecko and CoinMarketCap.  You will find information about circulating and total supplies, market caps, and prices in these sites. 

You can find gems by checking their timetables for initial coin offerings and airdrops. 

Launchpads

We discussed crypto launchpads in our previous blog post. You can discover various crypto projects in its early stages using crypto launchpads. 

The launchpads contain data such as upcoming  Initial Coin Offerings (ICO), and Initial DEX Offerings (IDO). Also, you can get updates on token sales.

Expert gem hunters participate in launchpads so that they can spot new crypto projects and gain access to their presale event. When investors can buy tokens or coins before the ICO goes public, they get the tokens at the lowest price possible. 

Crypto exchanges

Cryptocurrency exchanges like Kraken, Binance, and Coinbase have frequently updated listings on their websites. But once a digital asset shows up in a crypto exchange’s website, its price will inflate. 

Developers want to generate income for their crypto project. Hence, publishing it in a well-known crypto exchange will drive up the price of the digital asset. Your best bet for finding hidden gems would be in decentralized exchanges (DEX) because many early-stage cryptocurrency projects begin there. 

Gem hunting does not stop with identifying the gems. There are some necessary steps you have to take to ensure that those are not scams.

Double-Checking the Crypto Gems

Time and again, research is a crucial skill for anyone who wants to earn in cryptocurrency. Once you listed down the gems that caught your interest, it’s time to start the second phase of gem hunting. 

First, read up about the crypto token. Look up their whitepaper and try to discern if their goals are grounded on reality or if they are just out to get money. Can they explain their plans well or do they only rely on highly technical vocabulary to confuse their readers?

Second, do research on the people responsible for completing the project. Do they have solid and significant experience? What is their work history in the cryptocurrency space? You need to check their social media accounts and use Google to verify their profile pictures. In addition, a developer team with many leaders and few developers is a red flag. There should be a balance between the two groups. 

Lastly, check the metrics of their token. There are four essential features that you need to examine: price, supply, market cap, and trading volume. Coins or tokens with small, low, or micro caps have the biggest potential to grow exponentially.

Moreover, do not invest in projects that have billions in supply. It is better  for the project to release fewer coins because it has room to increase price and will maintain the market cap at a realistic value. 

Also, check the price charts to see how its price behaved in the past. Unexpected spikes and crashes can sometimes be a sign of pump and dump schemes. 

These are all time-consuming but it will help you arrive at a decision that will give you the highest reward for your money. 

Summary

Crypto gems operate in accordance with the belief that “the early bird gets the worm”. Investors who are part of a crypto coin reap the most benefits because their investment grows over time. Developers also like rewarding the users who have built a history with them by giving them special access to future projects or allowing them special tokens. 

Being a gem hunter is not easy and it requires time and patience. If you aim to find hidden crypto gems and invest in them, make sure to keep your expectations in check. 

An investment done wisely always pays off in the right time.