What are Gems?
Let's find out Gems meaning, definition in crypto, what are Gems, and all other detailed facts.
Gems are coins that are not being noticed at the moment but will grow in value in the future.
To put this in perspective, consider this - the top cryptocurrencies that are on the current market were once considered gems. For example, when Bitcoin first came around, almost no one saw its potential value. But the few ones that did, received tremendous rewards.
Generally, gems come in the form of coins or tokens with low market capitalizations. As more and more people discover the gem, the trading volume increases. Gems usually have scarcity mechanisms in place like a hard cap or a deflationary model. Yet some gems can be inflationary.
There are only a few criteria that can help you recognize a gem. It includes their market cap, volume, supply, and fundamentals.
In order to see how valuable a project could be in the future, before anything else, you need to perform a fundamental analysis. Don’t forget to consider that some factors can only be detected by outside expertise.
During your research, ask yourself these questions:
- Will this project create a big impact?
- What are this project’s key advantages and disadvantages?
- How competent and experienced is the team behind this project?
Gem hunting is a risky endeavor since more often than not the coins exponentially drop in value instead of growing.