There are three types of people in cryptocurrency world — those believing in certain project and holding it tightly in their portfolios as long-term investment (seeking BTC-type of spectacular rise in coming years), traders and day traders trying to mirror stock market technics and strategies and use them in crypto and then there are speculators looking to put some money in cheap unknown coins and wait for them to “moon”.
The latest are usually all about the profit and understand the speculative nature of current cryptocurrency market. They are aware that in such volatile world no one knows what will happen tomorrow, say one year from now. Crypto can be banned worldwide, political rhetoric might change, regulators might come into play etc., so they are looking to just ride the wave and get as much as possible in short term — 150/200/500% or even more of return of investment instead of waiting for 10–20% from already established project (LTC, XRP, XMR etc).
In this article I will try to show you how you can combine these strategies and find the next hidden GEM in cryptocurrency world and profit from it.
Let’s a quick example of such a coin.
According to their official website Storiqa is “#1 crypto marketplace — sell and buy goods with cryptocurrencies. No financial borders, extra fees and fake reviews anymore.”
Basically an Amazon for cryptocurrencies….it’s a relatively new coin built on the Ethereum blockchain by a group of Russian entrepreneurs.
Disclaimer: Let’s be clear here — I’m not involved with STQ or any other cryptocurrency in any case and my goals is not to promote certain project, but to open your eyes for reality and try to help you in the cold and cruel crypto world we are in, so you don’t get REKT. Whole market is being manipulated, but if you can profit from it there is nothing bad about it. My article is not an investment advice, so please do not invest money you cannot afford to lose. In most ICO’s legal disclaimers you can see the following note: “We do no guarantee you will profit from our token.” Actually no one can give you 100% guarantee on anything. Thing and do your own research before making a move. Think even twice if needed.
As you can see on the Coinmarketcap chart above coin was listed on 14th of March and traded in range for almost 2 months…and then something happened.
STQ started its meteoritic rise. For almost 3 weeks coins were being accumulated with the sole purpose Storiqa to be pumped and dumped at the end of May. From May 7th to May 29th STQ price almost tripled (2.6 times to be exact) from $0.0029 to $0.0077.
On May 31st the pump and dump started and price peaked at $0.0222 — explosion of 7.6 times of May 7th price. On the image below you can see the exact chart and also the volumes for that day. See that wall drop on June 1st around 08:30 — that’s when all whales dropped their bags.
I bought STQ early May and kept if or 3x 5x profit that I was expecting in coming months. I did not see this kind of pump and dump scheme coming, but once I saw the volumes I quickly realized what is going on and left at $0.018.
So, I made my profit, but I avoided being left with the bags after pump and dump was over. All this happened on HitBTC so I remember reading the comments there from people trying to pump the coin even more and promote it…
The trick here is to know how to:
Identify the GEM…
Find the right moment to sell and avoid being part of obvious pump and dump as usually price goes up quickly, but then drops to lower lows, so you might get away with a lot less then expected return.
So, what is a good GEM? Answer is this is a coin with potential to be developed in time — not just created for the sake of pump and dump or ICO dump for quick money. Ethereum was one a GEM — it had huge potential and developers worked on it, promoted it and built something out of it.
Look for a coin out of Top 100 or even Top 200 on Coinmarketcap.
Look for coins with less than 1 billion supply as this will mean coin price can go up with still a reasonable market cap. I mean, how can you expect XRP to go 100 bucks guys? 100x 100 billion in total supply it’s more than all the money in the world…C’mon…
When was the coin launched? Better be a new project…If an old coin gets high volumes this means one thing — accumulation in preparation for pump and dump. No one noticed the coin for a year and suddenly the market loves it? C’mon…
Check what are current volumes…were there any pump and dumps before?
Research the team behind the project? Who are they ? Are they active on social medias? Do they actually care about the project or they are in just for the money ?
Is the project actually worth something ? Are they new in the business ? What are they trying to improve in our world ? Is their goal even achievable?
Is it possible to by the coin on a top 10 exchange ? If not — why ? Are they planning to list it somewhere else ? HitBTC, Binance, Huobi, Kraken, Cryptopia ?
Once you have identified the desired coin put some money in it and my advice is not to by less than 10 000 units of a coin. Less will mean you will have to wait more and be exposed to market moves for longer period of time.
Let’s go back to STQ…10 000 STQs x $0.0029 for a piece = 29 bucks. So for $100 you buy 35 000 coins. STQ goes up to $0.0077 and you are at $280. The result is $630 at $0.018. More than 6x for a month…not bad.
Again, this is just a simple calculation and an example, I’m not giving you advice to put money here and there just sharing experience.
Let’s say you buy BTC with $100 bucks at $7000. This is 0.01428 BTC.
BTC goes up with 1k to $8000 and now you have $114 worth of BTC — this is 14% profit. Still not bad, but tell me how often you see BTC going up with 1k points and for what period of time ?
So in order to get 600% profit on BTC investment its price has to go little below $45,000.
Someone will say — yes, but shitcoins are more risky and they can just leave the project and you emptyhanded. Well, I remember a lot of people losing their house as they were unable to pay the mortgage after buying BTC at 20k….
Keep your heads up and see ya soon.
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