If you want to earn money in the crypto world, you need to invest when the project is still in its early stages, implying investing in the micro-cap sector. If you bought 279 Solana ($500/$1.79) in January, you could have sold it for roughly $69,750 less than a year later. This works out to 136x. For a $500 investment, that’s a pretty good return.

If you were early on in the Shibu-Inu mania, you could have bought 10 billion Shiba Inu for $500 ($500/0.00000005) in April of last year and sold it for roughly $800,000. This is equivalent to 1,599 times. For a $500 investment, that’s a pretty good return.

What is the Micro-Cap Sector, and what does it entail?

The market capitalization of cryptocurrency projects determines their relative position. The overall dollar market value is computed by multiplying the total number of issued coins/tokens by the market price of those coins/tokens. The Micro-Cap sector is merely one of many market capitalization levels within this industry.

Mega Market Capitalization is the highest level of cryptocurrency market capitalization, including projects with a market capitalization of more than $200 billion. Bitcoin and Ethereum are the only two crypto projects that fall into this category. It would be overly optimistic to expect 2x-3x annual returns in this area. You’d have to search at far smaller market capitalization levels to locate ventures with 25x-100x return potential.

Levels of the Crypto Market’s Market Capitalization

The Micro-Cap sector, which covers projects with a market capitalization of $10 million to $100 million, can be a favorite. It’s essential, especially when it comes to uncovering diamonds in the Play-to-Earn gaming industry, is the Nano-Cap sector, which consists of projects with a market capitalization of $1 million to $10 million. You’re looking at +100x returns if you uncover a project with a market valuation of $1M-$10M, and it goes to the top 25 (think Axie Infinity).

The Advantages of Investing in Micro-Cap Stocks

There are numerous advantages to investing in this industry that is not available in many higher capitalization levels. This includes the following:

• Return on investment is rapid (a few days to a few weeks)
• Huge possibility for growth (easy 5x-10x gains)
• Investment is not required.

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