When selecting small cap cryptocurrencies for investment in 2022-2023, several strategies can guide you towards making more informed decisions:
1. Listed on Binance Futures, Market Cap Fully Circulated Under $30 Million
Firstly, ensure the chosen cryptocurrency is listed on Binance Futures. This generally indicates a certain level of market recognition and liquidity. Additionally, cryptocurrencies with a fully diluted market cap under $30 million often have higher growth potential, as smaller market cap coins tend to be more volatile and can experience significant gains during bullish market conditions.
2. Identifying Market Movers
Examine the weekly chart to determine if there are significant market movers:
No Major Movers: If the weekly chart shows a consistent downward trend (like ATA and ALICE), it suggests a lack of interest or intervention by major investors.
Presence of Major Movers: If the weekly chart displays significant upper shadows (such as TRB, FLM, BEL, and BLZ), it indicates the presence of major market movers actively trading and influencing the price.
3. Be Cautious of Non-performing Investments
There are instances where despite careful selection, certain coins may not perform as expected. For example, investments in KEY and PHB did not yield returns even after two months into a bull market, leading to the decision to cut losses.
Summary
Choosing the right small cap cryptocurrencies involves assessing their market listing, market cap, and the presence of significant market movers. While this strategy can increase the likelihood of success, it's essential to remain vigilant and ready to adjust your portfolio based on market conditions.