How to Find the Next 100x Altcoin Gem

We talked many times about how you can find the next coin that will melt your face. Today we add a new twist to that. It’s not only fundamentals but a lot of psychology as well. Especially crowd psychology. This is of importance during this coming bull run.

So, let’s dive in and see what the role of crowd psychology is in finding an altcoin gem.

1) Crowd Psychology in Crypto

Crypto goes through cycles. They repeat each other and look similar. However, there also seems to be the same outcome. That’s almost like a guarantee. Only a few people manage to get profits and the majority seem to lose. Crowd manipulation plays a big part in this.

Here’s a typical pattern. When the growth starts, up to 99% of the people don’t buy. They think that they’re already too late. However, when the market hits an ATH, they buy in because of FOMO (fear of missing out). When the market hits lows, they sell, because they think it’s over. A typical pattern, buy high, sell low. 

So, what do we learn from this? If you want to break this cycle, you need to learn to conquer FOMO. However, that sounds easier than it is in real life. The reality is that it is rather challenging. I found myself back in this cycle in 2022. I entered crypto at the height of the 2022 bull run. Or, at last, that’s the time when I started to buy my first bags. Now they are all down 90 to 95%. At least, I didn’t sell them. A few are recovering, and one is even back in green.

However, there’s a saying that seems to have a lot of truth to it. Learn in your first bull run, profit in your second, and retire in your third. That puts me somewhere halfway in the middle. But there are a few things to look out for. They can help you to succeed in this market. Here are two events to be aware of. Below is a picture of the psychology of a market cycle. It also shows where we are right now.

Source: X

2) Market Structure and Patterns of Crowd Manipulation

Crowd psychology is likely the most important part of the crypto space. Sure, the fundamentals of a project are also essential. However, crowd psychology is highly underrated. Once you start to understand this and work with it, you find yourself on a winning trajectory.

Here’s how this works. You buy it when a project is flying under the radar. For example, during the recent bear market. Many projects were cheap as chips back then. At this moment of the bull run, they can already have a 5x to 10x under their belt.

That’s a lesson I learned during the bear market. Buy when there’s blood in the streets. In other words, when disappointment in a project takes over. Now investors are starting to leave. Big events, like the FTX crash, can multiply this feeling.

So, sure, it may be scary, but you will see the benefits later, during the bull run. You need to keep believing in the project. Assuming that the fundamentals didn’t change, right? But selling at the right moment is also critical. That moment arrives when greed and euphoria start to come into play. See the picture below. 

Source: X

3) Lack of Discipline

Set yourself goals. These goals can have specific rules and strategies. Now, the most important thing is to follow these rules and the strategy. That’s where the discipline comes in. Here are some samples. For instance,

• Profits are like hard-earned cash. Treat them like that. It’s not a casino game. You worked hard for this. So, don’t gamble it away.
• You can make profits in a short time phrase. However, you put months or years of work into this. 
• Don’t invest in old tokens. A new bull run brings new tokens. These have the potential of a 100x. The coins, that already peaked during the previous bull run, won’t have that potential.
• Don’t diversify too much. Keep a small bag of tokens that you know the ins and outs of.
• Don’t forget to take profits. Unrealized profits won’t feed you. Make sure to have an exit strategy and follow it.
  

4) How to Spot an Altcoin Gem

We covered spotting an altcoin gem already various times. So, I will keep this short.

• Look at the fundamentals of a potential altcoin gem. Look at the price difference. Check investors. Look for tokenomics. If it looks dead, it may be the right moment to buy. 
• Find the correct tools that will help you. CoinGecko can help with this. You can find your altcoin gem listed by market cap or other criteria. For example, you can look at categories. Make watch lists.
• Keep following a project. Stay up to date about its progress and join its social media. Look for and join its community.
  

Conclusion

When looking for an altcoin gem, we often forget about the market and crowd psychology. Still, this can be the biggest factor in how to be successful. We looked at the various aspects of crowd psychology, and how you can get on a winning path.

This article was inspired by this X thread.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.