When I started out in crypto I felt completely out of my league.
How to know what coins to buy? What will give me an edge?
I came to understand that I need a set of criteria for choosing coins that makes sense to me.
Here are my criteria and 5 coins I have been stacking.
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First off, this is not financial advice.
These are just my justifications for buying, and my outlook is 4 years overall, so cashing out in 2025.
I have been on the sidelines when big gains occurred because I missed narratives outside my criteria.
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The first thing I look for is small-ish supply.
Personally I get put off by coins with 10 BN supply.
I typically prefer coins around 300M supply.
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Next, I want to see a team that actually delivers products.
DEXes, NFT marketplaces, wallets, swaps.
It is important that a project can create revenue, and not have to always issue more supply to pay back early investors.
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Linked to that, the coin should have a function.
Memes coins can pump and make you lots of gains, but a functional coin is more my preference, as I feel it will survive long term.
Coins that pay for a service, a bit more that just governance would be nice.
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The last criteria is that the supply should ideally be fully vested, that is, the VCs or backers should have fully dumped their bags before I get in, so they can't dump on me afterwards.
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So what have I been buying?
1. $KUJI @TeamKujira
Fully vested
Team of builders
Small supply - 122M
Full suite of working products (DEX, Wallet, Bridges etc)
No inflation of supply!
All value flows back to the KUJI token
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Here's a great intro thread to @TeamKujira by @Rekt_Zerker
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twitter.com/Rekt_Zerker/status/1664438064481959940
2. $RUNE @THORChain
Fully vested
Team of builders
Small supply -300M
Token will become deflationary with lending
Integration with a number of wallets
The value of the token increases with more volume in the ecosystem
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$RUNE has a deterministic price model where nodes need to lock 3X as much $RUNE in the network than there are other assets.
So for each $1 of ETH added to a LP, $3 or $RUNE must be locked.
With more wallets using Thorchain to swap, more upwards pressure is on $RUNE
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Here's a great thread about $RUNE's value capture by @thewolfofdefi
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twitter.com/thewolfofdefi/status/1521876638807506945
3. $RNDR @RenderToken
No vesting
The token has a real world use case to broker GPU usage
Small supply approx 500M
The token will become deflationary
Partnerships with huge companies
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$RNDR is seen by many as a proxy bet on top AI stocks like NVDA.
The company founder has another company that is partnering with Apple.
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4. $INJ @Injective_
Low supply - 100M
Lots of products built
Lightning fast L1 with no gas
Compatible with EVM and IBC
Deflationary token by burning trading fees
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There's also a rumour that $INJ has the same market makers that pumped the hell out of $LUNA the first time around 👀
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5. $ROUTE @routerprotocol
Low supply - 20M
Solves a real world use case of cross chain communication and swaps
Team of active builders, will build their own Cosmos L1.
Not fully vested, and won't be until 2026.
Here's an interesting thread:
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twitter.com/DigitalAssetIG/status/1679935634012782592
That's it.
These are my criteria for buying coins, and the coins that I like based on that.
I don't plan to sell any until 2025, in the mean time I'll continue to occupy myself with NFTs 😂
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