Low-cap crypto gems can be a game-changer. These cryptocurrencies present a lucrative buying opportunity to investors willing to take the risk, providing much higher upswings in bullish conditions compared to their higher-cap counterparts. Finding gems like these when they are still in their early stage provides the most benefit. If you find yourself asking the question what is the next low cap gem crypto to invest in, $5thScape is probably the crypto you want to keep your eye on. With a comprehensive AR and VR ecosystem, strong vision, impressive token utility, and an ambitious roadmap that promises even more to come, $5thScape shows good signs that it’d be the next big name in the low-cap crypto space.
Before you go on with your plans to invest in the next low cap gem, however, it is important to note that investing in cryptocurrencies with significantly low market caps isn’t exactly a safe investment. Investing in any low-cap coin is a huge gamble, one you don’t want to make without doing your own research. This article will provide vital information to help you make a more informed decision.
What is Low Cap Crypto?
Generally, a low-cap cryptocurrency is defined as any crypto asset with a market capitalization ranging from $1 million to $50 million. These cryptocurrencies tend to be newer or less established cryptocurrencies which are much smaller in size and market value than their more popular higher-cap counterparts. The low market cap of these cryptocurrencies makes them significantly more volatile so a modest influx of investment can significantly affect prices. While this substantially increases the risk associated with these coins, it provides investors with a unique opportunity; the chance to earn much higher rewards than you’d expect from the more cryptocurrencies with higher market caps.
What is a Gem in Crypto?
In the crypto world, the term “gem” refers to any coin that is currently undervalued or lesser-known on the market but which shows significant growth potential and promises to provide higher returns in the near future. These tend to be cryptocurrencies that haven’t yet gained significant popularity but have a strong chance of becoming more popular and more valuable with time.
So a better way to put it would be that a low-cap gem is any lesser-known coin that is currently undervalued but displays significant growth potential. These are the kinds of cryptocurrencies you’d want to invest in if you are looking to invest in low caps. Unfortunately, distinguishing a genuine low market cap crypto gem from the multitude of shitcoins on the market can be quite difficult to accomplish and will require a significant amount of research.
How to Identify a Low-Cap Gem
Basically, only time can truly tell whether or not a low market cap coin is a gem. Typically, though, such a gem crypto will have the following characteristics:
1. It will be undervalued
A crypto gem will typically cost much less than its estimated value when it is still fairly new to the market or isn’t popularly recognized. When the crypto starts growing in recognition, however, the coin’s price and the market value start to balance out.
2. It should have a high potential
Crypto gems typically show huge growth potential. This can be inferred from how strong their fundamentals are, how capable the project’s development team is, and how unique the value proposition and use case the coin offers.
3. It should be in its early stage
Typically, low-cap gems are in the early stages of their development. This provides early investors with an opportunity to take advantage of their growth potential before they gain widespread recognition, enabling them to earn significantly more when the project reaches maturity.
Now that you know how to identify a crypto gem, it’s time to answer the big question: what is the next low cap gem crypto? Unfortunately, that’s not a very easy question to answer.
Given that the low market cap crypto market is incredibly volatile, there’s no sure-fire way to know for certain which coins will actually succeed and which will not. The best thing anyone can do is make educated guesses based on personal research. With that in mind and having done our own research, below is a list of five of the most promising coins we think you should add to your watchlist.
5 Low Cap Crypto Gems to Add to Your Watchlist
1. 5thScape (5SCAPE)
Market Cap: ~$6 Million
5thScape is one of those cryptocurrencies with a unique value proposition that could take the market by storm. This low market cap crypto platform hopes to revolutionize the gaming industry by integrating VR technology with blockchain, creating a range of immersive, hyper-realistic VR games in the process. Already, the platform features a variety of games, ranging from combat to sport and adventure, with several more in the works. Accompanying the games, the platform plans to launch its own VR hardware to provide a more immersive gaming experience.
With such an impressive use case, the ecosystem’s native token, 5SCAPE, shows impressive growth potential. The token also has inherent value in the ecosystem and will be useful to both gamers and developers. For gamers, the 5SCAPE token will provide access to premium content and exclusive features, and for developers, it will serve as the community's native currency.
With such an impressive use case, an established and growing community of gamers and developers actively invested in the native token, and t the soon-to-be-launched VR hardware which will only lead to more growth for the platform, what you have here is a low cap crypto perfectly positioned to be a big hit in the VR gaming sector.
2. Dogeverse (DOGEVERSE)
Market Cap: ~$15 Million
Dogecoin is one of the most popular cryptocurrencies on the market with quite a large community. A cryptocurrency positioned to harness this community is one that stands the chance to become quite successful indeed. Dogeverse is one of such cryptocurrencies with one revolutional twist; it is the first multi-chained doge-themed cryptocurrency.
This multi-chain approach further boosts Dogeverse’s growth potential by drastically increasing the platform's native token’s reach and creating a broader ecosystem. The platform’s unique chain-hopping feature currently supports seamless transactions across six major blockchains—Polygon, Ethereum, Base, Avalanche, BNB Chain, and Solana—and aims to span even more in the future. This will make the native token a highly versatile and accessible cryptocurrency, one that is very likely to take the market by storm sooner than later.
3. Helium IoT (HNT)
Market Cap: ~$21 Million
Helium is one of those cryptocurrency networks with a very strong use case. This characteristic makes Helium ($HNT) a great choice to monitor closely. A decentralized physical infrastructure (DePIN) dedicated to kickstarting a wireless revolution, the platform aims to establish decentralized internet infrastructure by leveraging community-operated devices to provide widespread and reliable decentralized coverage. Currently, the platform achieves this with its Helium Hotspots, but it is set to produce even more devices in the future.
Helium IoT token ($HNT), the native cryptocurrency of the Helium network, acts as the governance token for the network. By owning this token, individuals can take part in the decision-making process on the network. And with over 365,000 active hotspots on the network, this token already has significant value, which is expected to rise as Helium Hotspots become more popular and the platform expands its range of devices.
4. NetMind Token (NMT)
Market Cap: ~$140 Million
NetMind.AI is a decentralized crypto platform with a single-minded goal; to revolutionize the AI sector through the integration of blockchain technology with AI. It aims to accomplish this by creating a truly decentralized AI ecosystem, one that uses blockchain technology to create AI applications that are developed, deployed, and managed across a distributed network free of any single controlling entity. NetMind Token, the ecosystem’s native cryptocurrency, will be used to facilitate transactions on the platform, providing a seamless and secure way to access the platform’s many services.
With AI growing in popularity and seeing ever-increasing adoption, NetMind.AI is well-positioned to capitalize on the increasing demand for advanced AI solutions. This will only help the value of the NetMind cryptocurrency over time.
5. Render Token (RNDR)
Market Cap: ~$2 Billion
Render is one of those blockchain platforms targeted at a very specific niche. In this case, that niche is the VR/AR gaming industry. The Render Network is a decentralized GPU ecosystem that uses blockchain technology to create a decentralized network of quality GPS. This decentralized network can then be outsourced and used for various purposes.
Currently, the technology is used for rendering high-quality graphics and visual content for the Metaverse though it can also be utilized for other VR and AR applications. With the ever-increasing demand for high-quality content in the VR/AR space, Render Token, the native token of the Render Network, holds significant potential for growth and would be a great low-cap coin to keep an eye on.
Having presented our top picks for the best answer to the question of what is the next low cap gem crypto, we’d like to remind you again that there is no way to certainly tell which coins would be successful. The cryptocurrencies listed above are our pick of five promising low-cap coins on the market to keep an eye on.
We recommend that you do your own research on any of these coins (or any other coin you have your eyes on) before investing in them. Remember, every crypto comes with its fair share of risk. Make sure you are confident in the coin you choose to invest in before making your investment.
Managing Risk When Investing in Low-Cap Crypto
It is important to remember that although low-cap cryptocurrencies offer a significant opportunity for high returns, they also come with significantly more risk than the more established higher-cap cryptocurrencies. As such, investors need to take more active steps to mitigate the inherent risk associated with these cryptocurrencies.
If you are well aware of these risks and still intend to invest in these low market cap crypto gems, here are some key considerations to help you manage that risk:
1. Do Your Own Research
It should go without saying that you should thoroughly research any cryptocurrency you are looking to invest in. Low cap cryptocurrencies are no exception. Evaluate everything from the development team and their reputation to the technology they adopt, their market potential, and other relevant data. Take the time to do your due diligence on researching the low-cap crypto you are looking to invest in before actually investing in it.
2. Diversify Your Portfolio
Every investor knows how important it is to diversify one’s portfolio, after all, a diversified portfolio is a less risky one. Cryptocurrencies are no exception. By diversifying your portfolio to include a variety of cryptocurrencies, you successfully reduce the risk inherently present in investing in just one low market cap cryptocurrency. That’s basically you making sure you aren’t putting all your eggs in one proverbial crypto basket.
When diversifying your portfolio, make sure to include different types of cryptocurrencies, ensuring to focus on more low-risk assets in order to balance out the higher risk associated with cryptocurrencies with significantly lower market caps. Bitcoin is a good choice for this purpose.
3. Stay Informed and Updated
The crypto market is a dynamic and highly volatile space where prices change regularly. Several factors significantly influence the value of these coins, so staying updated on the latest market trends can help you quickly identify when significant changes may occur and help you make informed decisions.
Make sure to stay up to date on recent happenings in the crypto space and keep an eye on news about the coins you are interested in investing in. Monitor everything from regulatory changes to updates on the projects you are interested in. Following reliable sources of crypto news is a great way to do this.
4. Set realistic goals
It is essential to define your goals before getting into any investment and, again, crypto is no exception. Create a strict investment budget to ensure that you only invest what you can afford to lose. Establish clear, realistic goals that would help you stay focused and disciplined, and help prevent you from making impulsive decisions.
Set both short-term and long-term objectives, and regularly review and adjust them based on your progress and changes in the market. Such a disciplined approach will help you maintain control over your investments and better manage risk.
5. Take advantage of the stop loss and take profit features
Setting up stop-loss orders can help protect your investment from sudden price drops, while a take-profit order can help you take advantage of price hikes. A stop-loss order will automatically sell your crypto if prices drop to a predetermined price, thereby helping you cut your losses early. On the flip side, take-profit orders help you secure profits by automatically selling the crypto when the price reaches a predetermined level.
Review your stop-loss and take-profit orders periodically and adjust them based on market trends and conditions to reduce the risk associated with your investment.
Bitcoin and Low Cap Crypto Investment
At PlasBit, we believe Bitcoin is the only “sure” investment in the world of crypto. Being the only truly decentralized coin, it is the only cryptocurrency that is not controlled by any organization or centralized power, making it the most secure and reliable cryptocurrency known to date.
By investing in cryptocurrencies with lower market caps utilizing Bitcoin, the following benefits can be realized:
1. The ability to buy more coins
As the most widely accepted digital currency to date, Bitcoin serves as a universally recognized cryptocurrency that can be used to purchase any other coin, including low-cap cryptocurrencies. This makes it a foundational asset for individuals looking to invest in low-caps.
2. Reduced risk
Bitcoin is the most reliable cryptocurrency in existence today. While there is still risk associated with investing in Bitcoin, as with any investment, it remains less volatile than many other cryptocurrencies. This relative stability, combined with its widespread acceptance and proven track record, makes Bitcoin an ideal entry point for investing in the low-cap crypto market.
3. A diversified portfolio
Bitcoin is a great choice to add to your digital asset portfolio. Being highly reliable and one of the less volatile cryptocurrencies on the market, having Bitcoin in your investment mix can help provide stability, balancing the risk associated with the more volatile nature of cryptocurrencies with low market capitalization.
After Buying the Next Low Cap Gem Crypto… What Next?
So you have successfully found the next big low cap gem and have bought a decent amount of it. What do you do next; do you trade, or do you HODL? The answer to that all boils down to you and your goals.
Trading crypto is typically a short-term investment plan. The plan is to buy and sell cryptocurrencies in anticipation of and response to price fluctuations. The plan here is to buy cryptocurrencies when they are priced low and sell them when there is a price boom, thereby making a profit. “HODLing”, on the other hand, is a more long-term strategy.
HODling , also called holding, is a crypto investment strategy where an investor buys and holds a cryptocurrency over a long period of time, regardless of price fluctuations and the coin's general volatility. This is a strategy best employed when you believe the value of the crypto you are holding will significantly increase over time.
Conclusion
So, should you trade the next low cap gem you purchase or should you Hold On for Dear Life until you feel it’s the perfect time to sell? Well, there are several factors to consider, including the project’s potential and its volatility. In the end, though, the choice remains yours. It falls back to you to do your due diligence to properly research every cryptocurrency before you invest in them, and low-cap cryptocurrencies are no exceptions. Analyze each of your investment options to see which strategy best fits the coin, and stay up to date on your investments, and everything should turn out fine.
Remember, while investing in low-cap crypto can make you significant profits, it also comes with a significant amount of risk. You need to employ various strategies to manage the risk involved and do thorough research regarding the coins before you invest in them. Good luck!
