Early Crypto Gem Discovery — Full Breakdown & Transcript

[00:02] over $1 million with a single trade last cycle I was able to turn $760 into over 150,000 I was also able to turn 3,000 into over 600,000 and overall in crypto I've made vastly more money than I've ended up losing going from literally

[00:17] unemployment in 2020 to a millionaire by 2021 this video is about how I find these killer crypto projects early I'm going to go through my exact formula and through when it comes to filtering out the bad projects in finding the hidden

[00:31] gems now the bad news is what I'm about to teach you is by no means easy just like really anything in life winning in crypto requires a lot of hard work but the exact framework that I use this is something that took me literally years

[00:44] worth of learning to learn and a lot of hard-learned lessons that I learned the to okay so I'm going to break down the formula that I use to find crypto parts the first part I'm going to dive into is actually the easiest part and

[00:57] that's how I find new ideas to research in the first place the second part is vast majority of projects you're going to come across in the crypto space are going to be bad ideas so you increase your chances of finding good projects

[01:10] and good ideas by filtering out the vast majority of bad ones the last part is worth investing into by the way nothing I say in this video is investment advice this is just me sharing lessons that I've learned and my own thoughts about

[01:24] how to trade and invest in the crypto markets okay part one again the easiest a couple places that I go and look and again this is actually the least important part of my process there are an abundance of places you can go to

[01:37] really a hard thing to do within the crypto space when it comes to me personally I look in a couple different places I might go check for one the into the YouTube comments of my videos and see what projects people are talking

[01:50] somebody in the comments of my videos talking about like a Amazon crypto project that's like A7 something something something that's always a scam don't ever click that try to look that up or if you see like an annoying amount

[02:02] of posts about like a a weird obscure crypto project that I'm not referencing never talked about that is typically a scam as well and you should something you should avoid I might check replies from Twitter I might see a text from a

[02:15] friend sometimes I find new cryptos in different research I read so I read a they'll mention a crypto maybe I've never heard of I'll find new projects in sometimes it'll even come up in different conversations that I'm having

[02:29] podcast maybe I'm talking to a guest and they'll mention a crypto project or I'll about a project that they're really bullish on there's an overwhelming show you their favorite project that they're heavily invested into within the

[02:43] crypto space if I had to rate maybe my highest quality sources of information like where I consistently find the best crypto projects I'd probably say podcasts reading research and Twitter posts are the best places to find crypto

[02:56] during like a slow part of the season when people aren't maybe paying drink up bu run or like a Mania phase where like everyone's investing in crypto the alpha typically comes from comments or like Word of Mouth going

[03:09] those really big wins that I had I talked about early in the video the the second one I found via some research that I pay for and the third one I found found a project that you're interested in you move on to stage two and that's

[03:23] filtering out the bad projects or the bad ideas and this is where again 99% of these things go to die like 9 9% of the ideas or projects that you find should not pass this stage two and that's because the vast majority of crypto

[03:36] coming across are going to end up being hot garbage so this is a very useful step in your process the first thing you need to look at is really really basic yet for some reason nine out of 10 people who invest in crypto especially

[03:48] during a bull market still don't do this and that's looking at the market cap crypto investor this seems stupid to you because it just seems so obvious I this and I go way more in depth later in the video but this is a really basic

[04:02] thing that the vast majority of people still don't understand the price of a crypto doesn't determine its size or how big it can grow it is a meaningless metric when it comes to assessing a project for example a crypto sitting at

[04:14] 1 cent could be at a hundred billion market cap and one of the largest crypto projects in the entire space so the price of a crypto doesn't show you how cheap it is or how big or small it is that's what the market cap is for the

[04:27] market cap shows you how big or small a crypto is under $1 million in market cap means it's tiny under 10 million means it's really small under 50 million means it's small under 100 million means it's kind of small to medium under 500

[04:40] million I'd consider medium size 1 billion and under is medium to large 5 billion or under is large and 10 billion or higher is very large tiny projects can multiply your money by an insane amount but also are insanely risky large

[04:55] into a million but that's okay because they typically very far less risk so if absolute Gem of a crypto project you want to find a project when it's small find some insane plays that are already bigger it's just much more difficult to

[05:11] multiply your money by say 100x when the when a crypto product is already really large the second thing you want to look at after market cap is fdv or fully diluted value this is really similar to market cap in some senses you could say

[05:24] it's like the true market cap of a project FTV shows you how big a project would be if all it tokens were in circulation today often projects will lock up tokens for early investors the team incentives various funds to grow

[05:36] the project and more these locked tokens aren't reflected in the market cap but that's kind of confusing but think of it like this imagine if you had a special really really rare Pokémon card that there was only 10 of in existence and

[05:49] each of these Pokemon cards was worth $1 million so there's 10 of them each of because they're so rare now imagine the Pokemon company was going through one of their old warehouses and they discovered a million more of these cards that were

[06:02] release a million more of these copies onto the open market what do you think cards that were out before it would almost certainly epically crash the million more of these things in circulation anyone that wants one can go

[06:16] quite as rare this is similar to fully diluted value it shows you all the tokens that maybe aren't on the market today but one day will be on the market so projects with high fully diluted value for fdv compared to their Market

[06:29] could be ticking time bombs that you want to avoid however as with all things example a project I really like called research coin research coin has a high because there's a lot of tokens that aren't released on the open market today

[06:43] released onto the market however the vast majority of those tokens are going to be slowly dripped onto the market as incentives over the next 12 years 12 hardly something I need to worry about if I'm just Investing For This cycle for

[06:58] tokens that have high FTV it's really useful to use tools like token unlocks to see how the supply is allocated and when it's unlocking after fully deleted typically a Project's website is a really great indicator into the quality

[07:11] always accurate and there are exceptions but for the most part if a website is that the project likely is as well again 100% there are exceptions to this I've started out with horrible websites I wouldn't fully rely on this indicator I

[07:26] puzzle when overall assessing a project typically when looking at a website I look for a clean highquality design good marketing and the ability to communicate something that Taps into a narrative I expect to be big this is kind of a vague

[07:39] one and it comes from the experience of looking over lots and lots of crypto that are low quality that are typically associated with lowquality projects typically take a look at the chart is the price in an uptrend A downtrend or

[07:53] going sideways and specifically when it comes to ruling out bad projects I'm long-term downtrend there's a phrase in investing that goes don't try to catch a basically is just don't jump into an investment that's in a long-term

[08:06] downtrend from personal experience I've got burned bad almost every single time I've decided to jump into a project that was in a long-term downtrend 99% of the these same lines I'll check if a project recently pumped for example looking at

[08:20] really recently this is typically a sign of either a newsletter and an influencer on Twitter or YouTube or Tik Tok Etc talking about this project and a lot of people jumping in all at once and it's almost always followed by some sort of

[08:34] extreme pullback I personally just avoid buying after a major pump until price is stabilized after this I'll typically check the Project's volume if a project has a really low volume that's sometimes a worrying sign and if you want to know

[08:46] a Project's size it also depends on the overall market right like if uh it's and a project has a really low volume that shows it has really low momentum environment it's like really bearish and it has low volume then that's not as

[09:01] useful to like pick some projects that are maybe similar maybe on the same chain similar size similar kind of feel and see what their volumes are and and it's about the same as everyone else

[09:14] fine but if it's radically different for some reason that could either be really a sign that something else is going on and the final two things that I always out the bad projects is first off do I genuinely understand the value prop

[09:29] example how it works how I think it can grow over time what are the catalysts for that growth as well as I always ask myself how might this project fail if I can't answer why I think this project might go up or uh have if I don't have

[09:41] like a basic understanding of this project I typically go back and do more understanding of that and a concept or a bull case for this project on why I think it could go up the quickest way to lose money in crypto is by throwing your

[09:54] really don't understand in a similar fashion understanding how projects might weaknesses about a project that maybe you wouldn't notice at first glance and process up until this point I've shown you how I find projects and how I filter

[10:09] out the bad ones now I'm going to show you how I find the genuinely good ones and I'll get to that in just a second but really quick the obsidian council is share monthly research my entire portfolio updated monthly with the exact

[10:22] allocation I bought and a ton more we've had projects like Pendle which is up over 1,500% projects like salana which which is up over 779 projects like aosh which is up over 1700% and recently I got really lucky with goon and it went

[10:36] up over 179,000 that definitely is not typically normal and that's definitely an outlier example we also have the aird drop guide with some members made over $226,000 last year from aird drops alone covering

[10:48] decades I personally made well over 100k everything I'm personally doing with airdrops with the community via the monthly airdrop guide the obsidian council is currently close closed but if

[11:00] link in the description of this video to identify the higher potential projects I do a couple different things first off I assess the growth potential of the have a 2X potential could it double in value could it 5x in value could it 10x

[11:15] 50x 100x 1,000x or more if I'm looking to turn $1,000 into like a a small fortune I got to look at projects that have a high growth potential typically to find a Project's growth potential I'll compare the project to the closest

[11:28] crypto asset for example something like cow protocol I'd compare it to something protocol today is sitting at around $58 million in market cap Unis swap reached an all-time high of $22 billion during

[11:41] last Bull Run that's a potential 379x if cow would reach the all-time high that Unis swap hit during last cycle and this is just in general a really rough ballpark way to assess potential growth by no means does the

[11:54] fact that Unis swap hit $20 billion last cycle mean that cow can do the same thing it's just in general okay this similar type of assets hit this high so that means this also similar type of asset could potentially hit a similar

[12:06] token or if I mention it assume that I own it in general I talk about tokens and projects that I'm familiar with that I already own and hold because I'm those ideas after assessing a Project's growth potential I typically look at

[12:20] this project to go up in the future that's a question you should probably something for example when it comes to polygon the catalyst are the pole token launch the agare being fully deployed and polygon P becoming an L2 pole token

[12:34] polygon's current token is going to change the ticker is going to change more than that not just a ticker update there's a lot of new utility that gets that's a catalyst is because I know people are really bullish on new tokens

[12:49] the agare excites me is because when move between these chains using the agare I think they're going to be really whole and and the reason the polygon posos chain becoming L2 is a catalyst is

[13:03] influencers are going to suddenly start talking about polygon because it's going to be one of the largest l2s in the space every project you invest in should have something clear you can point to as a catalyst for growth in the future next

[13:16] a project having low liquidity tells you two things first off it could be a red isn't a good project to invest into but not always the second thing it shows you in the future a project with low liquidity is really easy to move up and

[13:32] down in price it only takes a small amount of buys to Skyrocket the price and a small amount of cells to crash the price this means if you find a project think it's going to do really well because of come some coming like

[13:44] narrative shift or Catalyst Etc and the liquidity is low well it can Skyrocket and price really really quickly really really easily but again on the inverse it also means that even a small amount of sells can crash that price really

[13:56] another way I use it is Maybe see a chart where like uh the price went way see that project has low liquidity it doesn't bother me as much because I know it could just as easily go back up versus a project that has really thick

[14:11] liquidity this skyrocketed and then cratered is going to have a lot harder is another great example of this if you look at the chart it's been cratering in liquidity you can see the liquidity is only $500,000 that's really really small

[14:26] the project the reason this doesn't bother me is cuz one of the co-founders of research coin is the founder of coinbase Brian Armstrong so I'm assuming traction he definitely has the connections and the means to deploy more

[14:38] liquidity to this project the next thing I typically ask myself is is this project a new token or an old token as a rule of thumb new tokens in crypto typically do better than old tokens obviously the exception being VC tokens

[14:50] launch at like a billion in market cap so like they'll air drop their tokens to their holders at a billion dollars in market cap with a ton of unlocks on The investors they have a lot of Team unlocks uh and just in general a lot of

[15:03] types of new tokens I'd actually say are bearish because all the unlocks and sell pressure that are going to come within 12 to 24 months for that project but outside of that situation as a whole new tokens that are well distributed are

[15:16] more bullish than old tokens that have been around for a little bit and it shouldn't be like that in my opinion you should look at solid fundamentals like assess these things but for whatever reason in crypto people get more excited

[15:29] about new tokens versus old tokens after that I ask myself what narrative this project might tap into and if I'm really excited or bullish on that narrative for the AI narrative I personally expect that when retail shows up into the

[15:42] crypto space that the AI narrative will be huge we've had Nvidia skyrocketing price people are really excited about AI they've never had a chance to invest early stage into any AI project in their life they only get something like Nvidia

[15:54] which is a multi- trillion dollar company already so when they find really small crypto projects that are AI related or AI adjacent that they don't is my chance to get exposure to this really big boom that is AI and they're

[16:07] going to invest into it that's my thesis when it comes to AI if something doesn't tap into a really popular narrative that's okay like it's not the end of the world but it always helps if it does I also typically assess if the tech behind

[16:19] a project is actually valuable or is it vaporware and there's a lot of crypto projects within the crypto base where the tech really is vaporware it space and they're really trying to sell you off of marketing buzz and ideas good

[16:32] Tech is always a strong indicator of real growth despite which narratives are check the Twitter and Discord announcements first off just to make building you'd be surprised at how many projects you come across that maybe are

[16:45] exciting to you but like the team gave up on the project like 6 months ago and pipeline like what's coming up what's this project releasing is there any bullish Catalyst ahead that I need to know about uh how active is the project

[16:58] something every 2 years maybe that's less bullish are they releasing these huge milestone updates because they're just grinding and working really hard bullish finally I'll ask myself if this is the type of project that I think

[17:12] influencers will share when the bull run hits its full stride during a crypto sharing what projects they're investing into and what they're excited about that's investing in crypto becomes an influencer this is uh the stage of the

[17:26] giving you crypto picks and there's always a certain type of crypto being more viral than other types of people in crypto are excited about data availability I think it's really

[17:39] unlikely that the average person is going to be excited about and talking but I gave an example earlier of research coin research coin I think is a really easy narrative to Pedal I think a lot of people are going to say hey I

[17:52] have this crypto is really small Brian Armstrong the guy that founded coinbase think it will go up those are easy narratives the average person can explain share and can go viral look for stories and ideas that are simple and

[18:05] just another reminder if you're interested in joining the OC make sure below this video as well as if you're interested in joining my free newsletter this video as well as always nothing that I shared here was investment advice

[18:19] it's like things that I've learned along the way my ideas my thoughts Etc but it don't know you I don't know your investment setup you always should do I'm saying with the grain of salt and you got to be a grown-up you got to be

[18:33] decisions for yourself if this video is helpful make sure to hit the like button anything you want to add let me know in the comments below as well as if you little bell next to it to be notified

[18:46] each time I release a video thanks for watching and I'll see you next week