AI coins will have their trend again, and now is the time for you to start looking for and accumulating AI coins on the cheap before they have a huge run again.
In this article, I will cover what I did to find BDP before it moved 30x. It is the same strategy I used to find GLQ, NAVI, and others with less than $5 million in market cap. This article covers:
Where To Find Low AI coins
How To filter the potential ones
How to trade low cap AI tokens
I will begin with where to look for these AI tokens. You don't want to see your favorite influencers tweet the ticker of these tokens before you buy. The reason is that they must have filled their bags first before shilling to you. You want to be ahead of the game. Which also means that you want to work hard.
Out of a number of places to search, I find Coinmarketcap most useful. You might not be new to Coinmarketcap, so you may wonder: why this data aggrregator?. This is because new tokens are listed and categorized for you.
Using Coinmarketcap To Find Low-Cap AI Tokens
From the website, look for the Cryptocurrencies menu and navigate to Categories. Scroll down and click on "AI & Big Data". You can search for it too, if you want
Menu: Cryptocurrencies > Categories > AI & Big Data
Right here, you will see all the available tokens with an AI tag. You can call this a gold mine. Do not just buy any tokens because you see them in the AI category. Follow my strategy to find the "good stuff."
How To Identify AI Tokens With Potential
What I do is scroll down to tokens with less than $5 million in market cap. If I want a 10x, I need to invest in a token with a very low market cap, and these ones offer a lot of upside opportunity. You will see up to 50 or more AI tokens under $5 million in market cap. This is where the real fun, or work, begins.
To know the good ones, I opened all of them in new tabs with a batch of five each. Then I ran a quick analysis on each one of them. If you want to know how I conduct fundamental analysis, check out my article on that subject in my profile.
What specifically am I looking for in these tokens?
Website and documentation: This is the first place to know what the project is about. I will read what they have on their website, and go through their docs. If what they have on their website makes sense to me, I will proceed to the next step. If not, I close the tab and move on to the next one.
Social media: So, they have cool stuff on their website. How is the strength of the community? I will check out their Twitter handle to see who among the people I follow follows them. I'll also take a look at their Discord and Telegram to see the vibe in the community. If it's good, that's positive. If not, I close the tab for that project.
Utility of the token: This part is crucial. An AI project may be doing some cool stuff like being able to create high-quality images, convert text to video, or do some other stuff. If the token does not have utility, I am not interested. Why? That is because there is no reason to hold the token, = quick fall in price.
Price history of the token: This part is very important to me. I will look at the charts and see what happened before now. Does the chart look healthy? Or does it look like a pump and dump? What were the ATH and ATL? All of these will help me know if I am in the right place
On-chain activities: Next for me is to look at what is happening on-chain. Who are the top holders of the tokens, and when did they receive the tokens. Is liquidity locked, and for how long? What is the token distribution? And if it's an inflationary token, what is the release schedule? This will help me know if it's good stuff or a time bomb waiting to blow up on me. Haha.
Other people's opinions: Now to the final part. Since I am not a "mister knows all", there are things I must've missed. So, I will search the ticker of the token to see if there are any negative reports about the project. If there are, that's the end for me. If there aren't any, then fine by me
These processes can take many hours or even a couple days. But the joy that comes after spending time doing this research is always well worth it.
In January, when I was looking for AI tokens to buy, I spent 3 days searching and analyzing. I narrowed over 50 projects down to 7, and 4 of them did very well. The biggest was BDP, which gave me over 30x.
Trading AI Tokens To Make Profit
As usual, it is all about risking what I can afford to lose. So, I allocate a small part of my portfolio to each of the ones I am satisfied with, and wait to see what happens. While waiting, I make sure to follow up with their communities to be sure everything is going as intended.
On some occasions, I will write a thread about the project. After all, I have to support my investment. But one thing I try not to do is marry my bags. When things go south, I do not hesitate to cut my losses, like I did with NAVI.
Conclusion:
Trading AI tokens can be very rewarding. But the process of looking for good ones to invest in can be very tedious. I hope my experience can be of great help to you.
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