The information contained in this article not intended to be a substitute for legal or financial advice that can be provided by your own attorney, accountant, and/or financial advisor.
If you’re into cryptocurrencies, you’ll already know about the special lingo that these traders use. Trust me, I get asked all the time what some words mean and as time goes on, they are getting stranger! But today, I’m going to answer the question: what does 10x mean in crypto? You might have an idea, but keep reading because I’m going to give you the full scoop from a crypto perspective!
A 10X in crypto is similar to a 10X in stocks or any other investment asset. When we say crypto could 10X, we mean it could grow in the order of magnitude by ten times. If we want to put this into a percentage, it would be 1,000% gains. See why crypto investors get so excited about a potential 10X?
The truth is, achieving a 10x in crypto is a lot easier than doing so with stocks. A lot of crypto traders aim for even more than 10x on their original investment. I don’t know about you but I would gladly take a 1,000% gain on my investment! In this article, I’ll discuss what it means to earn 10x in crypto, and what coins have already provided these returns in the past!
What Does 10x Mean in the World of Crypto?
When it comes to the crypto world, gains are measured differently than for other assets. So what does 10x mean in crypto compared to stocks or real estate? A 10x in crypto can happen overnight or even in a matter of minutes. Given how low market capitalizations are for some tokens, it is easy to understand why they can provide these exponential gains in such a short amount of time.
Most of us know a 10x in stocks would be an incredible gain but this will typically take years, if not decades. Unless your timing is impeccable or you are trading penny stocks, a 10x for stocks is unlikely for most investments. This is why so many people like to make riskier investments in cryptocurrencies. A 10x is easily achievable and in some cases, life-changing wealth can be made.
When it comes to the real estate market, a 10x is even less likely to happen within our lifetime. Most people are content with doubling their initial investment into a property. Since investments are on a much larger scale for real estate, the risk is somewhat mitigated, especially compared to cryptos.
What Coins have 10x in the Past?
If you zoom out far enough, nearly every cryptocurrency has 10x during its lifetime. Even the largest ones like Bitcoin and Ethereum have provided well more than 10x returns to those investors who were able to get in early enough. When we talk about a 10x in crypto, it’s actually a fairly low threshold to set.
So what about moving forward? If you are targeting some coins that will provide 10x returns you have to be selective. For example, it is unlikely that Bitcoin will provide a 10x anytime soon. Why? Because the price is already at around $20,000 USD and the market cap is around $370 billion USD. To be able to provide another 1,000% gains will likely take a while for Bitcoin.
When looking for tokens that could provide a 10x in the future, look for a low market cap and price. As well, you can do a bit more analysis into things like the total coin supply and the actual tokenomics of the project. Is it a finite supply? Does the project have a burning mechanism if more tokens are mined? These are all factors in searching for the next 10x or 100x crypto.
Is It Realistic to Invest in 10x Crypto Coins?
Yes! There are more than 12,000 cryptocurrencies on the market with more being listed each day. I would avoid the biggest project because most of them have already seen a bulk of their potential growth. You really want to target the new, smaller projects that have a low market cap and float.
Keep in mind that investing in any cryptocurrency is risky. Even Bitcoin or Ethereum could potentially go to zero at a moment’s notice. The smaller the project, the riskier it is that you lose your entire investment. This is the trade-off for the potential windfall you can gain if your token does 10x. Is it likely to happen? There is no knowing in cryptos. Nobody really expected the collapse of projects like Terra Luna, yet here we are!
If you want to allocate a small part of your portfolio to coins that could potentially be 10x, then it’s probably a good strategy. Unless you have a high-risk tolerance, it isn’t really advisable to just YOLO into an unknown project. Sure it could work out in a big way, but it could also cost you dearly. As always with any investment, do your research into the project and only invest what you are willing to lose.
The Bottom Line: What Does 10x Mean in Crypto?
The bottom line with finding 10x coins in crypto is that it is a risky game. There is a reason some people call the crypto market a casino. To answer the question, a 10x in crypto or any other investment is a gain of 1,000% or more. When it comes to cryptos, this can happen overnight which is something that most other assets do not have the capability of doing.
Remember, if you’re looking for the next 10x crypto coin, find the small market caps with good tokenomics. Best of luck out there!