Learn how to locate newly posted listings for the best opportunities
This year, like every bull run before it, has proven to usher in a frenzy of new tokens, each claiming to be better than the last. But how do you cut through the noise and decide how to choose the next 100x? While there is never any guarantee, there are a few proven approaches you can take to tip the odds in your favor. Be warned, micro cap investing is not for the faint of heart. This is a volatile strategy, and should only be employed in the lead up and during a bull run. Otherwise it will not be successful. Also bear in mind you should absolutely never invest more than you are willing to lose, because losses can and will happen. This isn’t a “get rich quick” guide. This is a “lose less often” guide. You won’t be able to read this and develop a consistently successful strategy without also putting in the effort and due diligence on your own behalf. These strategies aren’t foolproof, but they maximize your chances. You still need a dynamic market understanding and proper risk management to apply it successfully.
Firstly, lets talk overall goals. You should only invest what you’re willing to lose, as stated earlier. More than that though, proper position size is the crux of this being a reliable strategy. By this I mean, if you have $1000 disposable you are willing to invest, set aside $900 in something safe and try this strategy with $100. You may not be successful on the first go, so you need enough capital to try again. It will never be a maintainable strategy using a large chunk of your portfolio, because the inevitable losing streak will wipe all your gains. High risk strategies like this require careful risk management to be successful. Now, lets get to the prerequisite knowledge you will need for this guide to be of any use to you!
Prerequisites
- You must know how to use DeFi apps
- You must educate yourself on wallet security
- You must have a good understanding of the crypto/web3 space
- It is a good idea to have at least $1000 available for this strategy, as otherwise transaction and swap fees may eat into your profits.
So, to start, assess your portfolio and determine the overall amount of capital you are willing to dedicate to a high risk/high reward strategy. Divide that into at least 5 different pools (if you have $1000, each pool should contain <$200) to ensure you can repeat a few times. Now, the idea is to scrutinize the market and identify 3-10 solid new tokens, and delegate the funds of the first pool (only <$200 out of every $1000) into those tokens as you see fit. If you chose poorly, you will probably lose most of the pool. If you chose decently, at least one of them should have returned your entire investment and then some. If you chose well, you should have at least gotten a 10x on your overall investment. Now that you have an idea of the strategy, let’s talk implementation. The first big decision you must make is in regard to what blockchain you are going to use. Newly listed tokens will typically only be available on a single parent chain. Solana seems to be where a lot of the new tokens list due to the low transaction fees, which is also a factor. It would probably be my recommendation if you were to pick only one. Ideally though, your assets should be able to be split easily so you can leverage multiple chains for their supply of new tokens.
Now let’s discuss how to find new listings to research! This part is easy enough. There are constantly new projects on the market, especially in bull cycles. Social media is a good tool to uncover them, as any good projects are self promoting. Some sites like coinmarketcap.com also display new tokens and their respective exchanges.
Another good way to find new tokens is to view recently added pools on decentralized exchanges. This article from coin gecko explains how to do just that
HOW TO GAUGE POTENTIAL
This is the trickiest bit. You need a deep understanding of the market to properly do this. However, there are a few specific things you can look for in order to quickly identify which projects are likely to be around for the long run. Any good token should have a couple things. For one, there should be a whitepaper. No whitepaper is a HUGE red flag. It should also have some kind of social media page and a group chat for the token. Most importantly, it should have a clear and distinct value proposition.