Popular cryptocurrency trader and influencer Lark Davis has shared with his audience tips to find altcoins with the potential to give investors 100x gains, turning every dollar invested into $100 over a period of time.
In a new video, first spotted by Daily Hodl, Davis told his over 230,000 YouTube subscribers that one of the things to look out for is the market capitalization of a cryptocurrency. The trader suggests that altcoins with a relatively low market capitalization have the most potential, despite these being associated with the most risk.
If we’re realistically going to talk about 100x gains, you will ideally be looking for a coin with a market cap under $10 million. In terms of financial opportunity, that tends to be where the big bucks are made.
Per Davis, to find these cryptoassets investors need to head on over to crypto data comparison websites and filter by market capitalization. After looking at that data, they also look for token sales.
According to the analyst, there have been “been maybe a dozen or so token sales so far this year that did like 100x on day one of listing.” Davis pointed out that often these token sales are also accessible through platforms that force investors to invest in their tokens before participating, which could cost thousands of dollars.
Other platforms, Davis said, may also have tokens with potential on sale. He pointed to Balancer (BAL) as an example, before pointing out that a way to find cryptoassets that could skyrocket is to look beyond what everyone else is seeing.
Start thinking about what is actually going to come next for DeFi (decentralized finance)… Also while the entire market is focused on DeFi and NFTs (non-fungible tokens), what other use cases are there for cryptocurrency?
Per his words, the total value locked (TVL) of decentralized finance platforms may also be an indicator, as platforms with a TVL below their market capitalization could show the cryptoasset is undervalued.
Finally, Davis pointed out investors should do their own research before investing any money in the market. He said that if a token’s use case makes sense and if the project has a solid revenue model it could make sense. Moreover, finding out if big venture capitalists are backing the project is important.
Featured image via Pixabay.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.