Crypto trader and influencer Lark Davis is revealing his tricks of the trade for finding crypto assets with the potential to print massive 100x gains.
In a new video, Davis tells his 231,000 subscribers that market cap matters when looking for that next big mover. He suggests keeping an eye out for fundamentally strong altcoins with relatively low valuations.
“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. The easiest way to find these coins is to go over to CoinGecko.com and start scrolling a few pages in looking at the lower market cap coins, keeping an eye out for those gems… You can also click on recently added coins to try to find newly listed gems… CoinGecko tends to list hot coins within a few hours of them going live… You can also use the ‘discover’ feature to find what coins are trending today.”
The next area that investors should watch out for when finding altcoin gems is token sales, according to the crypto analyst.
“There have been maybe a dozen or so token sales so far this year that did like 100x on day one of listing. Those are not typical results but it does happen.”
Davis highlights that the current token sale market is pay-to-play since most of the new launches happen on platforms like Polkastarter and Binance Launchpad. He notes that to be eligible to get into those sales, investors must hold the launch pad’s tokens which may cost thousands of dollars.
If investors can’t afford the entry fee, Davis says to be on the lookout for promotional offerings and token sales on more equitable platforms like Balancer (BAL).
Another way to find coins that have the potential to skyrocket, says Davis, is to look beyond the crowded trade.
“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? What about enterprise use cases like Unibright (UBT)? Is the market ready for that yet? What about decentralized cloud computing, content delivery networks?”
The fourth way to find undervalued coins to look at the protocol’s total value locked (TVL).
“CoinGecko will give you the real-time TVL of DeFi protocols. For example, we can see the TVL of Aave (0.97) right now, meaning that the total value locked is near parity with the market cap of the coin. But then we have other coins like Badger DAO (BADGER) which has a much, much lower TVL score, meaning that there are way more assets locked in the platform than the market cap reflects, essentially meaning that this protocol is likely to be undervalued.”
The last tip Davis has is to do your own research. Find out if the token’s use case makes sense and whether the project has a revenue model. He also says to look if big venture capitalists are backing the project and if the market is ready for its products.
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/MAX BLENDER 3D