Cryptocurrency has seen an insane amount of growth over the past year. And a lot of this growth has been driven by the explosion in popularity of something called decentralized finance (DeFi).
There are some DeFi tokens out there that have seen price increases in the thousands of percentage points.
Now, you might wonder if there is a location where investors get together to discuss these tokens that are poised to make a leap in price. Fortunately, there is just a place like that – it’s called Satoshi Street Bets. It’s a subreddit on the popular social media site Reddit where users do exactly that – get together to discuss cryptocurrencies poised to make a massive price increase.
Unfortunately, there is some stuff you should know before investing in some of these speculative cryptocurrencies users like to discuss on Satoshi Street Bets. And this article will cover everything you need to know about that and more.
What Is Satoshi Street Bets?
Satoshi Street Bets is a subreddit on Reddit where users discuss longshot cryptocurrencies. The name of the subreddit is a play on the popular WallStreetBets subreddit. Likewise, the subreddit culture closely resembles that of WallStreetBets with lots of references to diamond hands, bears, and other memes.
This makes sense because, well, the subreddit does the same thing as WallStreetBets, but with longshot cryptocurrencies instead of longshot stocks.
Is It Possible To Make Money On Satoshi Street Bets?
Yes, it is certainly possible to make money on Satoshi Street Bets. In fact, you can make a lot of money if you do a good job picking the right cryptocurrencies.
On the other hand, it is also extremely easy to lose all your money by picking the wrong cryptocurrencies you see promoted on the subreddit.
Sadly, picking the right cryptocurrencies comes down to experience, timing, and a decent amount of luck. But there are some ways to maximize your potential for success picking altcoins, which is what the next section will cover in great detail.
What To Know Before Investing In Altcoins Discussed On Satoshi Street Bets
Here are some quick tips to help you make better investing decisions with these microcap altcoins. It is important to note that these tips will not guarantee success, but they will greatly improve the odds that you make the right decision and do not lose your entire investment when the coin founders decide to run off with all the money.
Learn To Spot Scams
The most important tip is to learn how to spot scams in DeFi/altcoins. This might sound difficult to a newbie, but it is really not difficult at all. Follow these tips to avoid scams.
Anonymous founders are a good sign of a scam. Does this mean that every cryptocurrency with anonymous devs is a scam?
No. Bitcoin has an anonymous founder(s). Monero has anonymous founders.
However, it is a very bad sign when a cryptocurrency project has an entirely anonymous development team and gets heavily promoted on a place like Satoshi Street Bets.
It’s also important to point out that scammers know that having an anonymous founder is a very bad look, so they have smartened up and began creating fake founders. They use a fake image from a site like ThisPersonDoesNotExist and build out a fake social media profile for this person.
This is why due diligence is of the utmost importance. Does the LinkedIn account look a little empty? Are there videos of the developers? Academic papers?
Use information like that in your research to determine if the “doxxed founder” is simply a fake identity meant to earn the trust of investors.
It will save you money in the long run.
The Project Doesn’t Actually Do Anything And/Or Ambitious Goals
Another great sign of a cryptocurrency that is either a scam or not going anywhere is a project that does not actually solve a problem.
What? How can a cryptocurrency not solve a problem?
Well, most cryptocurrencies attempt to solve a problem, which is why you have to look at what problem it is trying to solve.
The most common problem of scamcoins is that the cryptocurrency will become a global currency. This goal sounds great on paper, but in practice it is extremely unlikely that a cryptocurrency started two weeks ago will suddenly surpass more established cryptocurrencies like Bitcoin or Stellar as a global payment network.
Now, these projects can go up in value in the short term with the right marketing. But these types of cryptocurrencies always fail in the long term.
Just keep that in mind if you decide to invest in one of these cryptocurrencies.
Clueless Developers or Founders
Finally, you can learn a lot of information just by talking to the developers or founders on Telegram or Discord.
Do the founders or developers even answer questions on the Discord or Telegram?
It is a very bad sign if they don’t even answer questions.
If they do answer questions, then you should ask probing questions that can help determine whether they actually have any computer experience.
Generally, you want to avoid investing in cryptocurrencies that have developers or founders that are mostly clueless about how their cryptocurrency works.
For instance, Vitaly Buterin (founder of Ethereum) goes to conferences all the time to discuss Ethereum and has been doing so for years. He clearly knows what he is talking about in regards to Ethereum, blockchain, and the greater cryptocurrency industry.
The same cannot be said about a lot of the founders of cryptocurrencies that appear on Satoshi Street Bets.
Again, avoid cryptocurrencies with clueless developers or founders – it’s either a scam or doomed for failure.
Ethereum or Binance Coin (BNB) Is Required
Next, you will most likely need Ethereum or some Binance Coin to invest in most of the cryptocurrencies discussed on Satoshi Street Bets.
Why is this required?
These are small cryptocurrencies that are not available on centralized exchanges like Coinbase or Binance.
You will have to buy these coins on decentralized exchanges like Uniswap or PancakeSwap.
This is both a good thing and a bad thing. It’s good because the price is lower due to the somewhat complicated nature of using Uniswap or PancakeSwap. It’s also bad because there are no regulations of these exchanges.
Anyone can create an ERC-20 token and start selling it on Uniswap, which is why you must do your own research as discussed in the previous point.
Note: Ethereum has high gas fees. Make sure to check your gas before making a purchase.
Not Every Pick Is A Winner
An important point to keep in mind is that not every pick you make with cryptocurrencies or stocks will be a winner.
Sometimes you just make a bad pick and the price falls 90% in a day or you get scammed for your money.
Don’t let this discourage you. Learn why the coin fell in price and try to avoid purchasing coins that behave similarly in the future.
Beat The Crowd
Another critically important tip is to try and beat the crowds.
Did the coin spike in price 500% in a few hours?
That is usually a sign that a 90% dip in price is coming as early investors dump their coins for a quick 500% (or more) profit.
Ideally, you want to find a cryptocurrency that has a flat price, buy a lot of it, and sell it when it begins to gain some traction on Satoshi Street Bets.
Take Some Profit
Finally, you want to realize your gains and take some profit at some point. You do not actually make any money until you sell the coin for fiat currency (or a more stable cryptocurrency like Bitcoin or a stablecoin).
Basically, unrealized gains are meaningless in the world of microcap altcoins.
Has Satoshi Street Bets Had Profitable Picks?
Yes, Satoshi Street Bets has had successful cryptocurrency picks in the past. The most notable example is Dogecoin.
That’s right, the beginning of the Dogecoin runup was pushed on Satoshi Street Bets. Dogecoin was mentioned on the subreddit when the price was under $0.05 and probably even lower than that.
The price of Dogecoin spiked to over $0.60 a few months later.
Other examples that have been mentioned on Satoshi Street Bets include Polkadot and YIFY token. YIFY token is an especially good example because the price of that has gone up a tremendous amount since the inception Yearn.finance.
So yes, it is certainly possible to make profitable decisions based off of the information on Satoshi Street Bets.
Bitcoin and Ethereum vs Altcoins on Satoshi Street Bets?
The general rule of thumb for cryptocurrency is that you should have most of your investment in “safe” cryptocurrencies like Bitcoin and Ethereum. These will offer exposure to the market without much risk of zeroing out in value.
The type of altcoins found on Satoshi Street Bets should be reserved for money that you can afford to lose.
It is basically gambling. Sure, sometimes you will earn returns in the thousands of percentage points, but most of the time the cryptocurrency will flatline or go to zero.
It’s not a worthwhile investment strategy, but it can still earn a decent amount of money in a short time period.
Our recommendation is to stick with Bitcoin and Ethereum unless you want to spend a large amount of time researching different altcoins.
Alternatives to Satoshi Street Bets?
There are not that many alternatives to Satoshi Street Bets at the moment. Most of the groups that claim to find small cap altcoins worth investing in will be some sort of pump and dump scheme.
However, there is another subreddit called CryptoMoonShots. It does the same thing as Satoshi Street Bets with less memes and references to Wall Street Bets.
But it still has a lot of people shilling scamcoins, so do your own research before investing in any coin that you find on CryptoMoonShots or Satoshi Street Bets.
Satoshi Street Bets is an excellent place to purchase to get tips on small marketcap cryptocurrencies that have the potential to make exponential gains. However, caution must be taken before making any purchase because the subreddit is populated by a lot of shills pushing scamcoins.
With all that in mind, it is still worth checking out because all it takes is being right one time to cover all the losses from the times that you do lose money.