AFTER the crypto boom in 2021, the market has reversed course this year with Bitcoin down nearly 40 per cent and weekly NFT sales plummeting 80 per cent from their early January peak of nearly $1 billion.
But with some analysts implying the bottom is nearly in, people in the space are on the look out for coins with 100x potential. But what does this mean and how can I find them?
What does 100x mean in crypto?
In simple terms, 100x means a cryptocurrency becoming 100 times more valuable than its original price. For example, on April 13, 2011, Bitcoin was priced at $1, but by April 1, 2013 Bitcoin was worth $100 – an increase of 100x.
For Bitcoin to 100x one BTC would need to reach $3million.
Although this sounds near impossible, some do believe Bitcoin could 100x.
MicroStrategy CEO, Michael J. Saylor, said Bitcoin is capable of reaching a market cap of $300trilion long term, meaning the price of one Bitcoin would be around $14 million.
But, for those wanting to see a cryptocurrency 100x in the next 12 months, it’s more likely to come from an altcoin.
Altcoins are all cryptocurrencies except Bitcoin, which share similar characteristics but are different in their mechanism to produce blocks or validate transactions.
As of March 2022, there are 10,363 active cryptocurrencies.
But out of those which one is most likely to 100x?
How to find 100x cryptocurrencies
Step 1: Filter by market cap
Coins with a lower market cap have higher potential of increasing 100x.
Filter the cryptocurrencies with a market cap of between £5 million and £10 million.
This allows there to be enough room for growth and also filters out all the worthless coins.
Step 2: Filter based on a Volume/MarketCap Ratio
The volume of trades over the last 24 hours can give you a sense of how active the coin is. Filter out the coins with a Volume to Market Cap ratio between 10 per cent and 50 per cent.
This means the cryptocurrency in question would take approximately 2 to 10 days of trading to cover its market cap.
You also need to consider wash trades.
Wash trading is when the investor sells and buys the same asset to artificially increase the trading volume, giving the impression the asset is more value and in demand than it really is.
Step 3: Team quality, project uniqueness, and community
You need to check the qualitative aspects of the project.
First, do a background check on the team’s credentials and experiences on LinkedIn, Twitter, and other forms of social media.
Read the white paper, use cases, and roadmap of the project.
Check the activity and discussions of token owners and followers on social media.
Read more on 24/7 Crypto
How risky is cryptocurrency?
It’s important to remember people invest at their own risk and cryptocurrencies are not regulated.
All crypto investments are risky and coins with the potential to 100x are volatile, and you should be prepared to lose everything you invest.
The UK’s Financial Conduct Authority (FCA) warned in January 2022: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
