Cryptocurrencies have proved to be the best-performing assets of the past decade. Aside from the most popular assets such as Bitcoin and Ethereum, many other coins have provided investors with 100x returns in crypto or even higher.
Yet, the number of choices is really huge. As a result, making the right choice and selecting a project with a huge potential becomes a rather complicated task.
What are the key factors giving crypto such a capability? How can investors find the golden grains in a haystack? Let’s find out.
The internet is full of experts talking about the coins to make 100x return in crypto next month, next year, or next century.
Unlike these fortune tellers, we do not give financial advice here. Instead, we analyze the past trends trying to find out what contributed to the growth of these assets.
Some examples of coins that made incredible returns in the past few years include the following:
Of course, there is no guarantee that everyone who invested in these assets has managed to make such a successful exit.
Crypto is tricky. People may lose their private keys, store assets on a CEX that goes bankrupt, or simply get overcome by greed and cash out their coins before they reach their all-time high.
Yet, the chance exists. To catch luck by the tail, prudent inventors should consider a number of factors to implement specific strategies.
Let’s take a look at the key factors driving up the prices of the assets mentioned above and the strategies that could help investors make good profits.
Getting in early means better chances to hit the jackpot. If you spot a promising project at the beginning of its journey, the chances of getting an astonishing ROI will be much higher than if you start investing at the peak of its popularity.
Note that you don’t have to be a Nostradamus or possess some insider information to find such projects.
Here are just a few notable examples to think of.
After the first significant bullrun in 2020, it was clear as day that Ethereum was quite a serious project with huge potential.
Getting in during the recession that followed (1 ETH was about $100 at that time) would mean about 200x returns in the next bullrun about three years later.
Binance is another serious player in the crypto market. With such a strong player standing behind the BNB coin, the asset was destined for success.
Yet, unlike Ethereum which was gradually building its strenght, its price spiked practically overnight with the new bullrun in 2021. There are a few reasons for that:
As a result, BNB holders became millionaires practically in a blink of an eye.
Perhaps, the examples of Ethereum and Binance are too obvious.
What if you find a project that looks like a real gem but is still at a very early stage to be 100% sure of its future growth?
The answer is simple. Invest a small amount and closely monitor the asset price.
In most cases, small projects have small liquidity pools and just as small order books. This means that one can easily move the asset prices with more humble amounts of money.
The cryptocurrency market is a highly reflexive system. This means that the changes in asset prices have a strong influence on people’s perceptions. Consequently, they also influence their actions that affect the prices further and thus close the loop.
As an undisputable leader in this market, Bitcoin has the largest impact on people’s behavior.
Whenever its price goes up, investors start to fomo, buy more, and, eventually, push it even higher. Practically all other assets with lower market cap repeat its pattern.
At the same time, the low market cap enables much more radical price swings for these assets. Therefore, the returns one may get will also be much higher than in the case of Bitcoin.
Yet, it is also crucial to spot the right moment to exit. When Bitcoin price drops back, all other assets crash, too, and to a much larger extent.
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JOINDisclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Kate is a blockchain specialist, enthusiast, and adopter, who loves writing about complex technologies and explaining them in simple words. Kate features regularly for Liquid Loans, plus Cointelegraph, Nomics, Cryptopay, ByBit and more.
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