Shiba Inu got a lot of people feeling like the wolf of Wall Street or should we call them the wolf of shiba street. They, all of a sudden started feeling like they can spot a good gem coin and make theirselves and other people rich. I felt that way too after telling lots of people to buy SAND token and no one listened. Few days ago SAND Token went above $3 from $0.7.
Personally before believing in a project to assume it’s the next gem coin I try my best to do some research by trying to know the team behind it. I love it when the coin is looking forward to partnering or has partnered with some notable big projects. Go to their website and explore there to know if you can find some credibility in the new project.
Attention seeking coins scare me sometimes. Coins that get listed and before you know it, the coin is already promising you outrageous wealth and lambo. I try to avoid those coin because I see them to be red flags. I might be wrong sometimes.
People always say you check the smart contract by analyzing it. I personally don’t know how to do this, but am ready to learn to add this to the list of my skills of trying to spot new gem coins. Another red flag I see on new coins is when the devs hold and own like a big chunk of the coin. Imagine a new coin having the holders hold like 50% of the coin. What for? Of course it’s for dumping when they like. You can check coin holders and the percentage they hold by checking the smart contracts.
In crypto, we need utility, use case and community. Each of them are as important as the other. But I want to emphasize on community. One thing I have realized is that money doesn’t come from no where, if you have a service or an utility, it takes people to drive the value up. When people transact on that project then the value will be placed on the project. So community is the most important part of a project, especially a community that believes in the project. Community have a great power to move the price of a coin really high, they can also move the price down when there is distress.
Another skill I will like to add to my list of skills in trying to spot the next gem coin is analyzing a potential next gem coin through charts. Some people just have a way of looking at a chart and know if it’s going to be a shitcoin or not. They can tell when to buy and when to sell. I used to use technical analysis as a way to enter and exit a coin. I loved using support and resistance a lot and used to help but I have come to realize and agree that it’s always fundamental analysis over technical analysis.
Look at supply of tokens before buying. When I start seeing billions in supply, some tokens have trillions in supply and these coins are shitcoins. How can you have trillions in supply without any deflationary plans. It’s statistically and economically impossible for that coin to last. Coins with lesser supply are considered to have better chances of growing. When the demand is high and the supply is low or limited, then we are going to see the value spike really good In a very healthy way.
Always look at for fundamentals when checking the price charts. If you see a major spike in the chart, check if there was a fundamental that can account for that spike.
These are my ways of spotting gem coins.