How To Make Money From Crypto Investments Under $1 ?

Among traders cryptocurrencies are mainly known for their high volatility since that’s the major factor making crypto trading that appealing.

But the biggest potential for astronomic growth in relatively short time lies in the small and unknown cryptocurrencies which are called low cap or micro cap altcoins due to their relatively small or tiny market capitalization.

A micro cap altcoin can start at a few Satoshis per coin and end up with 50x of it’s initial price after a couple of months, just to give an example.

However, such returns are only possible for small investors with little capital since the market cap of a small altcoin doesn’t offer room for big investments yet. If a coin has a market cap of 50 BTC and a daily trading volume of 0,04 BTC there is no capacity to invest $10,000 with the target to make a million.

However, small traders can get their returns:

If you only have $10 the whole thing looks very different. For a student it’s a pretty good deal make $1,000 out of $20 within a couple of months, when picking the right coin. That’s theoretical possible with certain low cap altcoins.

How Crypto Traders With little Trading Capital Can Multiply It

Compared to the big leading cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple etc. which have market caps up to billions, the low cap altcoins only have market caps up to 1 or 2 million, which is comparatively tiny.

The big advantage of those small altcoins is that they can potentially grow astronomically, like several dozens to several hundreds of percentages within a couple of months.

So if you only have 50 bucks to invest, a low cap coin could make 2,500 of them if it grows 50x, for instance. Not over night, but maybe within a couple of weeks or months.

How To Know If A Small Altcoin Might Be Worth An Investment?

Such altcoins are listed on coinmarketcap.com – the No 1 platform listing cryptocurrencies by market cap.

Clicking on “view all” above the table on the front page will show the relevant coins somewhere low in the list when scrolling down.

There you find coins with market caps of 0 to maximum 300 BTC. That’s roughly the range to investigate.

These are the important factors you should look for to separate the many shitcoins from the few that could really go moon:

Check The Circulating Supply

That’s the amount which is currently actually being traded and it should not be too tiny like just a few hundred coins, neither should it be in the billions which could mean overloaded order books.

Too few coins don’t allow a serious trade market, of course, and too many coins won’t allow the coin to grow exponentially, because there are just too many on the market.

Check The Total Supply

(amount which is currently existing = circulating supply + supply that is not available for the trade market)

If there is a big gap between the amount of coins that exist and the amount that is actually being traded on the market, this is likely because of a bigger premine. So the developers hold a bigger amount and you never know if they would soon manipulate the market with their capital. Often that’s a sign for a shitcoin. There should be either no premine at all or just a few percentages which the developers hold.

The total supply should not be more than maximum double the circulating supply. The less the difference, the better.

Check The Maximum Supply And In What Time Frame That Supply Will Flow Into The Market

= How many coins shall once exist in the end of their creation process (mining)?

If this end supply is way way higher than the current supply, it’s possible that price might rather go down than up over time (Inflation).

Imagine the following..

Now:

Total/Circ. Supply 300,000 coins at price 0,0005 BTC
= Market Cap 150 BTC

Future:

Max Supply 2,000,000,000 coins at price (still?) 0,0005 BTC
= Market Cap 1,000,000 BTC

If the coin would get so much more supply and price wouldn’t go down, the coin would be among the leading altcoins in the end.
And for how many would that happen? It’s unlikely.

In that case this coin would have to get a gigantically growing demand that compensates the inflation that would be caused by more and more coins flooding the market.

You can calculate the inflation rate easily:

Daily new coins * current market price = daily sell pressure

(That’s the new supply which needs enough demand to get bought)

Inflation rate = daily sell pressure / circul. market cap * 100

A growing price would only be possible if the mining takes many years, like a hundred or so, and the amount being mined per block decreases. Then the inflation would start low and decrease over time.

Generally the amount of coins being mined per new block should decrease, so the inflation rate can decrease and go to zero. That’s why you need to do a little investigation concerning the mining in order to understand how much the supply will grow.

All those information can be found on coinmarketcap.com and the project’s website. Clicking on the coin on coinmarketcap.com you’ll get to the coin’s chart page with details like the official website of the project, announcements and block explorer sites linked.

Other Factors

When the economical factors look promising there are some fundamentals left you should additionally have a look at:

  • the idea
  • the developers
  • the community
  • time line / progress
  • Communication channels

You should also check the idea behind the coin, the developer team, the white paper and if there is an active community backing this project. The developers should have a serious background and be very competent.

The idea behind the project should be highly useful, it should solve a problem in a very unique way or with a big advantage compared to other existing coins. Check for a discord channel or other channels where the devs communicate. They should have a timeline and show progress.

If all those factors look promising, you won’t risk much when investing up to 50 bucks, and the possible return might be huge.

Good luck!

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