If you have been within the cryptocurrency space for any period of time, you may have heard of the term low-cap gem thrown around. These are the types of cryptocurrencies all crypto investors are looking for.
Definition: Low Cap Gem
Low-Cap Cryptos are low market capitalization cryptocurrencies with promising growth potential with expectations of 10x-100x (or more) return on investment.
The Significance of Market Capitalization
The main reason low market capitalization is highly sought is the growth potential these cryptos can offer.
For example, the growth potential of any of the top 10 cryptocurrencies (ranked by market capitalization) may be at most 2x-10x. While some of these 'blue-chip' cryptos may offer a good long-term return, they aren't going to generate life-changing wealth.
It is these cryptocurrencies with very low market capitalization and strong adoption potential that have the potential for 10x-100x (or more) return on investment. This type of investment can offer life-changing wealth. One of the more popular examples is Shiba Inu (SHIB) which had a return on investment of over 800,000%.
If you are looking for cryptocurrencies with maximum growth potential, you will be wanting to look at high-quality cryptocurrency projects with strong adoption potential and low market capitalization.
To understand what low-market capitalization is, it's necessary to understand there are many different market capitalization levels within the crypto market.
The cryptocurrency market covers much more breadth than the traditional markets, especially at the lower capitalization levels. We have identified 8 different market capitalization levels within the crypto market.
To learn more about the market capitalization levels within the cryptocurrency market, read this article.
How to Find Low Cap Gems?
Low market capitalization cryptocurrencies can easily be found using one of the many cryptocurrency listing sites, such as CoinMarketCap or CoinGecko. These and many other cryptocurrency listing sites offer the user the ability to search and sort cryptocurrencies by their market capitalization.
Ten years ago, finding low-cap gems was relatively easy as there were only a few hundred cryptocurrencies actively traded. Today there are over 10,000 different cryptocurrencies actively traded and more than 50 different categories and sectors under which these cryptocurrencies fall.
The best method to find the next low cap gem is to find sectors within the market that are experiencing massive growth. In the past, some of the highest growth sectors were Play-to-Earn gaming, Metaverse and DeFi.
As the market matures and grows, so do the next high-growth sectors. To keep up to date with the next high-growth market sector, consider subscribing to our Free Newsletter.
How to Evaluate a Low Cap Cryptocurrency
Once you have found a low market capitalization cryptocurrency, you will want to assess it to determine its growth and adoption potential. To do so, consider reading this article:
Learn to Profitably Invest in Low-Cap Gems
Some of the best returns ever seen within the cryptocurrency market have come from low-cap gems. In the beginning, there was only Bitcoin and if you purchased it when it was only a few dollars, this could have been considered a low-cap gem. While the opportunity to purchase Bitcoin for only a few dollars no longer exists, there is a thriving cryptocurrency market of over 10,000 actively traded cryptocurrencies - some of these are low-cap gems.
Follow us as we explore the cryptocurrency market in search of the next low-cap gem.
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