The answer is yes! Several people have been publicly vocal about accessing the 7-figure wealth through crypto investments.But it is risky business and you cannot just sit around.
Disclaimer: This is not financial advice.We are not experts.You should do your own research.
1.RISK-REWARD IS KEY Investment theory depicts a we l l know phenomenon, which is the correlation between risk and reward.Basically, the more risk you take the more reward you may get, but also the more loss you may encounter.In this sense, the crypto market is riskier than the NASDAQ 100 and this is why, very simply said, it was able to outperform it over the past years.There are actually many other reasons, but to keep it simple, we pick this as the main variable.
A proxy that is often used for risk is volatility; so indirectly we could say that the more volatility there is, linked to an investment, the more potential gains (and potential loss).
Therefore, the cryptocurrency market is more volatile than the NASDAQ 100 as well.
The same theory can be applied within the crypto sphere itself.Big market capitalizations, like Bitcoin, Ethereum, Cardano and Solana are less volatile and therefore less risky than the top 100 crypto currencies, which are themselves less risky than small market capitalization coins.By small market capitalization, we understand below USD 100M market cap.
Yet like there is more potential for crypto to outperform the NASDAQ 100, there is more potential for a small market cap to do 100x, 1000x or sometimes 10,000x, than any big cap coins.This is why this year we have seen tokens like Shiba Inu (SHIB) bring in returns of more than 800’000x since exactly 1 year ago the 4th of November.That is 80,000,000%.Which means if you had invested USD 1 into that token last year you would have made USD 800K, if you had invested USD 10, you would have USD 8M.
Unfortunately Shiba Inu is now a super large market cap, so don’t expect to get that kind of return from them now.
This is an extreme case and for one investment like this you may have to do tens of other ones which don’t work out.
2.TIMING IS KEY If you look at Shiba Inu’s historical price data, its token value did not move for at least 3 months when it was first released November last year.Many could have thought it a scam or a dead project during that time.So until early this year 2021 nothing happened, and then it took off to go to the extreme heights we know, with a lot of ups and downs in between.
Investing before it takes off should be your target as an investor.Your mission is to identify projects with good potential, not after everyone invested in it, but before everyone.This seems obvious, but you would be surprised at how many people invest with the trend are often “late” to invest.Don’t get me wrong, investing with the flow can still get you amazing returns, but not the 1000x, 10,000x.
Taking the example of ElonDoge ($EDOGE).
Like Shiba Inu, this token was flat over the past 4 months, despite having an interesting concept with NFT and self-enhancing mechanisms.Yet it went up recently in just a few days by a staggering 1500% (15x).
In order to be among the first investors, you have to search for the right projects, dig hard and find them yourself.We outlined several strategies to find 1000x gems in a previous article called 1000x Crypto: This is what millionaire investors do and you should too .
As importantly, if not more important, you should know when to sell.
Timing is key when buying, but also when selling.As mentioned, small market caps are extremely volatile, they can go up very quickly, as well as down very quickly.A good strategy is to set for yourself a target.Say you invest in a token at the price of USD 1 and you have analyzed for this project that a 10x return is the return you would like to achieve in a specific set timeframe.Then stick to that.When the token reaches USD 10, you should sell it.Unless new information came in and your analysis of the token’s potential has changed.
Coming back to ElonDoge, following its recent 15x performance, it then dropped by 50%.An investor who would have set its target at 10x would have sold at a higher price, as compared to today’s price.
An investor with a 50x target would still be in it.But who knows, this kind of token might just exhibit another 15x rise in the near future and so forth.
3.MARKETING IS KEY There are thousands of low market capitalizations out there, so even if a project is good, it needs major marketing efforts to get the word out and stand out from the crowed.
Sometimes even bad projects succeed when they have stellar marketing, because investor sentiment is everything in crypto.
In January 2021, a major event occurred in the traditional equity market; the short squeeze of GameStop.
Retail investors had created such momentum by buying massively this share that it was unstoppable for a while.This drive was created mostly by a subreddit post viewed by millions.In short, marketing and communication triggered that buying craze.
So try to understand whether a project has the capacity to create major marketing momentum, grow its community at a fast pace, communicate with precision and constantly, leverage a valuable network and connect with influencers.
For example, at Rebellion Protocol, we are planning a massive marketing push for our token launch, which includes AMAs, talking to influencers, PR with a marketing agency, community marketing events like the Rocket Pool challenge, communication strategies in major social media such as Telegram, Twitter and Reddit and flooding coin finding websites.
4.BONUS — DIVERSIFICATION This is a base rule in investment: don’t put all your eggs in the same basket.
Yet, what is the diversification that is adapted to you? It depends on your total investment amount and your risk profile.As a rule, the more you diversify the more you reduce the risk related to a single project, but you also reduce the reward impact of a single project on your total portfolio.
So, choose the correct diversification for you.
Yet don’t invest in 50 projects if you have USD 10K to invest, it will be too complicated to manage and you will limit your upside potential (as the performance will be an aggregation of the performance of the 50 positions and its unlikely you can cherry pick 50 good projects).Counter wise, don’t invest only in 1 project, as you won’t have any diversification and will rely only on this project to be successful.
General guidelines:
30%-50% of the portfolio in major players like Bitcoin, Ethereum, Binance coin or Cardano 20–30% in top 100 coins, hands picked according to current trends (eg.
NFT, Defi, interoperability, etc.) 20–30% in Gems, cherry picked by doing extensive research.We believe our project Rebellion Protocol is a good addition to any portfolio, in the Gem category.Thank you for reading.If you liked this, give us at least a dozen claps for good luck.
As a reminder, in crypto only invest what you can loose.This article is not financial advice.
Cryptocurrency projects are highly risky.Do your own research before investing in any projects
ABOUT REBELLION PROTOCOL The Rebellion Protocol is the first 100% community driven systemic exponential growth cryptocurrency project.
The project stems from a simple question: Can we create together, a project that is so strong that it elevates an entire community to financial freedom and subsequently makes the established financial system irrelevant?
The answer was to build a cryptocurrency with the kind of systemic growth that generates ripple effect throughout its entire ecosystem, that is self-enhancing and exponential, and therein displays overwhelming momentum and moves with unstoppable force.This is what we have been working on tirelessly for the past year.
If you are looking for a high potential 1000x tokens, this might be one.But don’t trust us for it, make your own research, evaluate the risks and understand your profile as an investor.
💻 Website: https://rebellionprotocol.com
💬 Telegram: https://t.me/RebellionProtocol
🐥 Twitter: https://twitter.com/RebellionToken
📖 Whitepaper: https://wp.rebellionprotocol.com/
📊 Reddit: https://www.reddit.com/r/REBLProtocol/
💡 Medium: https://medium.com/@RebellionProtocol.