Identifying a Cheap Coin /Token.

[yomarve]

In the spirit of adding value to this forum, I am making this post as a reminder to those who are new and those who may have forgotten.

Many of us may have been cut in the hype /pump craze and ended up in lose or with some little worth tokens or worse worthless tokens.  I will stop here as this isn't the purpose of this thread rather it is to show n reshow the way to identify cheap project.


Go-to Coinmarketcap you will see the prices of various projects. You should know projects are ranked by default based on marketcap. That's why you would see a number 50 could have a higher price than a number 38.

Understanding what they will make you identify a cheap project.

This is a mix of various factors which when considered quantitatively and qualitatively will give you a good result in choosing a good project.

Now the deal.

A cheap project is not by PRICE.
A cheap project is by MARKETCAP.

You should know that a project after identifying the price drivers will only grow of the market cap grows.

It's easy for a project with  $2,000,000 market to get to $10,000,000 than a project that has $1,000,000 to get to $10,000,000,000.

So when you are in a group chat on TG or anywhere and you see some saying "this project will mooooon n get to $100 from $0.10 within a month or two,  you should not give them much importance. Many don't even understand the numbers.

For a project having a price of $1 with market cap of $1,000,000 to get to $100, this means the project has to increase in its marketcap by a 100 times within a month or two.

Sounds crazy huh? While anything is possible,  you have to understand what can drive such a price to that level would be major partnerships, breakthrough in technology, mass adoption all these coupled with incredible marketing.

Don't be swayed by the hype or pump. Many are just to screw you.

Go-to CMC and perform a critical analysis of how the top 20 projects rose to that level. You will see and appreciate the fact that knowledge is power.

Please you can add your contributions.