It’s always fascinating to hear stories about how someone invested a few thousand dollars in a cryptocurrency and turned it into millions. The key here is to find these crypto gems called GEM coins before anyone else. So what are these GEM coins and how to find them?
What is a GEM coin?
GEM coins refer to cryptocurrencies and tokens that have the potential to generate huge profits, are undervalued and out of the public eye. The price of these new cryptocurrencies is often very low, often under a cent each, with the possibility of large returns.
For Bitcoin (BTC) or Ethereum (ETH) to do 100 times more than where they are now, hundreds of billions, if not trillions of dollars, of new money must flow into them. However, since these cryptocurrencies, characterized as GEM coins, have a smaller overall market capitalization, far less market participation and volume is required to increase their value by 100 times.
However, it is very important to detect fraud in cryptocurrencies. Even well-known cryptocurrencies have a high risk. Therefore, investors run the risk of being scammed and losing their assets while searching for GEM coins.
What should be considered in GEM coins?
There are many criteria you can look for to determine if the risk/reward ratio of buying a particular cryptocurrency is worth it. A GEM coin does not need to have all of these, but the more it has and the higher the chance of becoming a GEM coin. We have mentioned the most important ones for Kriptokoin.com readers.
The team behind crypto
The first place to start researching a cryptocurrency is to look at the entire project itself. Visit the website and see who the team behind it is. It should be tried to find out what other projects they are involved in, how well they keep their promises, how active they are on social media channels, and whether they take into account the suggestions from the community.
The price of crypto
When people are considering buying Bitcoin and the current price of Bitcoin is tens of thousands of dollars for a single coin, owning just a fraction of a Bitcoin is unattractive. That’s why they turn to altcoins with fractional prices.
Analyzing smart contract
Most cryptocurrencies are created as tokens on the Ethereum Blockchain or Binance Smart Chain. If the owner of the smart contract can issue new tokens, how many tokens does he have, how is the distribution done, etc. issues should be explored.
Holder number
Using Blockchain explorers such as Etherscan or BscScan, it is possible to track how many different wallets hold the cryptocurrency and how much each one holds. Ideally, the number of holders will increase as they become more popular, especially for new cryptocurrencies.
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