Taraxa - Potential Micro-Cap Gem
Time To Build Micro-Cap Positions
So, recently I mentioned that I had begun researching some under-the-radar micro-caps. Ideally, I am looking to find a few layer 1 projects that can still experience significant upside, as well as offer a healthy staking reward. Picking up projects below a market cap of $50 million is ideal, provided they go on to succeed and eventually capture the attention of the market.
Taraxa utilizes blockDAG technology, which seems to be gaining a lot more attention lately. Kaspa also utilizes blockDAG technology but is a Proof-of-Work coin, whereas Taraxa is a Proof-of-Stake project. Taraxa is an EVM-compatible smart contract platform based on t-Graph consensus utilizing blockDAG, enabling WEB3 to solve real-world problems. With an AI-enabled ecosystem, this project seems to be well-packaged and presented.
Taraxa is a project that has stood its ground and subsequently has managed to survive two bear markets. If I am not mistaken, the project launched in 2018 and managed to have a fairly good run in the bull market of 2021. TARA is currently trading at $0.001 and managed to peak at $0.10 in 2021. CoinGecko lists the all-time high as $0.07, but when you look at the charts, you will note that it’s actually $0.10.
Micro-caps are obliterated in a bear market and tend to sell off rather heavily. Even solid projects go down with the ship. This is something to always bear in mind. Don’t read too much into the price, as these micro-caps can pump just as hard as they collapse, if not harder. Studying Taraxa in the charts reveals a decent bottoming formation, and appears as if it has pivoted.
This, for me, indicates the commencement of accumulation. I have purchased my first batch of TARA, and am now keeping an eye on the charts. Unlike BTC, it is advisable to only add to micro-cap positions once the project is heading in the right direction. I purchased my TARA at $0.001 and will now wait for a higher local top, such as $0.0015 or $0.002. I will then add to my position during the course of a correction from either of these levels or higher.
It’s generally unwise to deploy additional capital if the price drops without first experiencing a higher high. TARA has a market cap of approximately $4 million. There is still plenty of time to add to a position. It’s better to allocate in conjunction with an appreciating market, rather than simply dollar-cost-averaging. Investing in micro-caps is completely different from investing in Bitcoin or other top-tier altcoins. Strict risk management is imperative.
Final Thoughts
It’s kind of difficult to imagine a project like Taraxa remaining at $4 million in market cap. Furthermore, due to Taraxa being a proof-of-stake project, there is passive income to be generated via staking rewards. Currently, investors can stake their TARA at a 17.6% APR. The project recently migrated to its mainnet, so transaction fees are practically zero. Withdrawing my TARA from MEXC only cost me $0.11, making it a viable opportunity for small investors as well.
MEXC has the highest trading volume between the exchanges that are currently trading TARA. The overall trading volume for TARA is usually in the vicinity of $100K, which is pretty healthy with such a small market cap. Please remember, that micro-caps are incredibly risky. Do your own research and manage your risk well. That’s it for this one. Catch you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
