I Invested $100 in a High-Risk Cryptocurrency to See How it Turns Out.
Did you know that if you bought $100 of Shib Coins before it became popular, you could have already earned a million dollars at its ATH?
Of course, it is easy for us to see that. After all, hindsight is always 20–20, right?
However, this highlights the harsh reality of crypto in general.
Sure, you could still potentially earn lots of money investing in already popular coins. However, you could never experience the x1000 event unless you had discovered the coin when it was still unknown to a lot of people.
So, with that reasoning, I decided to stray away from the top 500 cryptocurrencies and start looking for a hidden gem.
Take note that I wouldn’t advise anyone to do what I am doing, as investing in low market cap coins is extremely risky and are full of scams. As a matter of fact, I have been scammed a lot of times attempting this.
Coin Selection Criteria
One advice experienced traders give beginners advice is never to be emotionally attached to their investments.
One method I use to prevent my emotions from clouding my judgment is establishing a set of criteria that a coin must fulfill before investing in it.
No matter how hyped-up a coin is and how much its price increased, I would never invest in it unless it fulfills all of my requirements.
For documentation purposes, here is the set of criteria for selecting a low market cap coin:
- Has an actual use case
One of the most common pieces of advice experienced people in the crypto space tell beginners is to invest only in coins with real use cases, especially in a bear market.
This is because cryptocurrencies with actual use cases can survive without hype since they are valuable on their own.
- Has an active social media presence
The second criterion is that the coin should have an active social media presence that regularly updates its investors regardless of the coin’s price action.
I included this criterion because let’s face it, marketing and hype are essential factors for a coin’s price to rise.
- Has an active development and is true to their road map
Along with having an actual use case, another non-negotiable criterion I have is that the team behind the project actively develops the project and meets the deadlines they set for themselves.
It ensures that the team is true to their word and that the project is not just built on empty promises.
- Must have a market cap of $1m or less
As I’ve mentioned earlier, the goal for this experiment is to invest in a coin that has the potential to do a 1000x or more, so it is a given that one of the criteria for my high-risk investment would be it should have a low market capitalization.
For those unfamiliar with the market cap, the market cap is simply the value of the coin multiplied by its circulation supply. It is used to measure how big the coin’s market is.
- Passed my 1-month cooldown period
Lastly, I know I am the type of person prone to FOMOing. So, my last criterion was that the coin should be able to survive for a month after I discovered it before I invested in it.
No matter how the price changes within that 1-month cooldown period, I would not buy, and I would just observe how the team deals with volatility typical in cryptocurrencies. If it survives for a month without losing 90% of its value, I’ll invest in it.
How I found the coin?
I found the coin through a combination of luck and a sprinkle of personal bias.
First, I went to coinmarketcap, browsed the listed cryptocurrencies by market cap ranking, and looked for a coin that caught my interest in the top 3000–2000 range.
The Result
After weeks of hard work (JK, the actual work involved is just about an hour), I finally found a coin that fits all my criteria and is most likely not a scam.
The coin is Lithosphre (LITHO), developed by KaJLabs, and is the first cryptocurrency to utilize deep neural network learning to achieve crypto interoperability.
It has a market cap of around $80,000 and might have the potential to 1000x my hundred dollar investment.
It looks like the team is legit and has even offered $250 million to bail out Voyager a few months ago.
Currently, I hold about 90,000 LITHO, which I bought at $0.0011 per coin, and if its price reaches $10, I’ll have close to a million.
Link to the first update on this investment.
If you want to see how this investment will turn out, follow me and subscribe to my newsletter. I will post monthly updates about my $LITHO investment.
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