Crypto

Hoping for Multibagger’s Return, Cryptocurrency Bettors Bet on Coins

As with stocks, crypto punters’ ‘penny’ coin bets carry higher chances of a crash than the promise of multibagger returns.

Buying small caps at low prices in the hope of a rise in prices is a strategy that goes beyond the stock market. The same goes for cryptocurrency investors: they put their money in small-cap cryptocurrencies and pray for a windfall. But experts say it could be risky. There are over 6,000 virtual currencies and tokens in circulation around the world, and spotting a multibagger early on is nearly impossible, they say. Just like on the stock exchange, the cryptocurrency world also has large, medium, and small coins and tokens.

A ‘small cap cryptocurrency’, or ‘penny crypto’, is a currency with a market capitalization (Mcap) generally between 5 and 15 million dollars, while “mid caps” fluctuate between 100 million and 500 million dollars. Cryptocurrencies with a market cap of over $ 500 million are widely distributed and traded and are labeled “large cap”. Cryptocurrency watchers may call the ‘buy cheap, sell dear’ strategy risky, but investors have made significant sums by adopting it. The phenomenal rise in the prices of coins and kens, such as Solana, Polkadot, BNB, Tezos, Ripple, Cardano, Avalanche, Dogecoin, Matic and Shiba Inu are testament to this proven strategy.

“People take positions in undervalued cryptocurrencies when they find major currencies to be expensive.These are called “undervalued stones” in crypto fund management jargon. This is exactly why savvy investors continue to outperform their investments in Solana, Polkadot, and ..Cardano, because they believe these next-gen blockchains will break Ethereum’s dominance. Ripple and Tezos are considered to help the payments industry.

“The reason people buy small caps is that they multiply faster than the major cryptocurrencies. They don’t realize that they are also collapsing at a much faster rate,” says Sidharth Sogani, CEO founder of Crebaco, which offers valuation services to cryptocurrency issuers, exchanges. and DeFi activators. “Even some issuers of small-cap coins are con artists… Investors should do their research before investing in lesser-known coins and tokens.

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