- Investors can turn to token sales and look for projects with a low market capitalization to find high upside potential.
- Binance Smart Chain, Cosmos, Avalanche, and Ethereum ecosystem present good opportunities for investors.
YouTuber Lark Davis has shared a video in which he revealed his tips and strategies to make “big profits” in the crypto market. Davis believes that in 2021 many people can become millionaires through the crypto market, with altcoins that will rise up to 100x.
In that regard, he advised his audience to look at the market capitalization of any project they choose to invest in. Calling Bitcoin and Ethereum the “safest” bets, Davis said that no one buys these cryptocurrencies to “make crazy profits.” Altcoins with the potential to rise as much as 100 times have low market capitalization – usually less than $10 million, but strong fundamentals that support a future increase in price.
The YouTuber said Coingecko is ideal for investors who are in search of new altcoins. This platform has a section called “newly added coins” which is great for “finding those gems” with 100x upside potential. Davis said:
Remember, just because a coin is trending doesn’t mean you should buy it, but it can be a way to find interesting coins that are gaining popularity (…) and sometimes those coins have low capitalizations that have great profit potential.
Another area for investors to focus on is token sales. According to Davis, there have been many sales in recent months that have yielded exorbitant returns. As such, he recommended investors to make an early entry into projects via Binance Launch Pad, Polkastarter, and the like.
However, engaging in token sales can be risky. Some projects only offer a chance to buy their tokens if buyers hold them and this, according to the YouTuber, can “cost thousands of dollars.”
Bitcoin and Ethereum, safe is better?
The next tip is to pay attention to “ignored” projects. The Ethereum DeFi sector got attention long after the first DeFi tokens were deployed and early entrants received the highest rewards. Davis sees potential in Binance’s Smart Chain and Cosmos ecosystems. The latter has been growing and “gaining power” in recent months, as Davis added:
Go beyond crowd trading, start thinking about the things that will come next for DeFi. What about Ethereum layer 2? Polygon decentralized finance has gone crazy and is very undervalued in comparison (…).
Investors can also find opportunities in Ethereum competitors such as Avalanche’s Pangolin DEX, Elrond, Unibright, and others that tap use cases other than decentralized finance. To find new projects, users can look at the total value locked. This way they can find “undervalued” protocols, such as BadgerDAO. Davis concluded:
While we all want 100x returns, low-cap altcoins can be risky. Buying Bitcoin, Ethereum and the major protocols may not be as exciting, but they are less risky (…).