- Timothy Ruth focuses on investing in undervalued blockchain protocols with solid fundamentals.
- He looks for global issues and then figures out which projects will address these problems.
- Ruth then examines their market cap and determines whether there’s a lot of room for growth.
Timothy Ruth began investing in stocks in 2007, but after witnessing bitcoin’s explosive growth in 2019 he began to take a serious interest in the crypto market. He realized that regardless of how volatile the burgeoning cryptocurrency was, bitcoin’s chart was still predictable.
While Ruth was getting his bachelor’s degree in quantitative economics from the Naval Academy, he had access to a career starter loan — a chunk of money he used to invest in stocks. That is, until he got completely wrecked during the 2008 stock-market crash.
After that, a professor at the academy who was also a successful trader offered to teach him and some of his classmates technical analysis. That was when Ruth said he learned to trade regardless of market conditions.
Today, Ruth is dedicated to trading cryptos while sharing his knowledge of technical analysis with his followers on social media platforms like TikTok, where he’s known as CryptoWeatherMan.
And while much of the stock and crypto markets are hurting at the moment, Ruth isn’t worried about overall sentiment. Instead, he’s focused on getting into solid projects early while they’re still undervalued.
"We see those posts of 30,000% gains, or this just did 100x. Well, if we want to have those types of gains, your best bet is to find fundamentally strong cryptos with extraordinarily low market caps that just have not gotten any attention yet," Ruth said.
Finding these rare gems means digging into a lot of data, and at times, even reaching out to the teams building these protocols and asking key questions, something Ruth has done when evaluating early projects. Many of these projects aren't available on every major exchange when he finds them — but once they do become available to a larger audience of investors, there's potential for massive and rapid growth.
Ruth also focuses on finding blockchain protocols that solve big problems. He starts by identifying society's biggest issues — not just in the US, but globally — and looks for projects that attempt to address them. Something like the infrastructure bill and where it seeks to spend money is a good starting point for him.
Things such as energy, data storage, and cybersecurity fall under areas of interest for Ruth. He then checks CoinMarketCap for cryptos that provide utility and solutions to these sectors.
The kicker is that projects that are in their infancy are extremely volatile and definitely risky. Additionally, other traders who have also caught on to them are there for the profits. So high price peaks also means deep plunges as traders sell off in droves to rake in gains.
Moonshot picks for 10x and even 100x growth
When Ruth was looking into crypto that provided utility in the energy sector, Powerledger (POWR) stood out.
Powerledger is an operating system for new energy markets. It supports the tracking and trading of energy, flexibility services, and environmental commodities. It operates internationally in several different countries and is headquartered in Australia.
The energy crisis will continue to be an evolving problem globally, Ruth said, which is why he believes that it's likely the value of POWR could hit 10x or more. In fact, it's already up by 93% since December 30, he noted.
As of Friday POWR was trading at around $0.53, according to CoinMarketCap.
PARSIQ (PRQ) is another strong bet that Ruth likes. It acts as a bridge between Web 2.0 projects and Web 3.0, meaning that when companies look to transition to web 3.0, this will be the project of choice.
Ruth believes many large corporations will eventually want or even need to transfer their digital assets into a web3.0 format. And when that happens, developers will need tools to face challenges in security and scalability. Ruth believes they will likely turn to PARSIQ to conduct the integration.
PRQ was trading at around $0.42 on Friday, with a market cap of $63 million. Ruth believes this one will fly, growing by 5x to 10x in value.
Solve Care (SOLVE) is a protocol that intends to decentralize healthcare networks. It already has a robust amount of clients and networks, including insurance companies, Ruth noted.
"If you go out of state and you need to go into a medical facility, they have to update all of your records, update the insurance information, but Solve Care aims to solve that problem. So that regardless of where you go, the information's already readily available on the blockchain," Ruth said.
He added that the leadership team is active within the community. He has been able to get in contact with the team, and get answers to his questions.
SOLVE was trading at around $0.12 on Friday, according to CoinMarketCap. Its current market cap is $53 million, but Ruth believes it's undervalued and has 10x potential. He believes it's only a matter of time before it breaks above a market cap of $100 million, if not $300 million.
Quantstamp's (QSP) main focus is protecting what already exists rather than focusing on recovery. It can identify vulnerabilities and exploits on blockchains and smart contracts.
Ruth believes that when web2.0 platforms begin to make the transition over to web3.0, this is the type of protocol they'll need.
As of Friday QSP was trading at around $0.04 with a market cap of $28 million. As it gets listed on more exchanges and as enterprise adapts its utility, Ruth says this has potential to 15x.
Many of these cryptos are not yet available on all exchanges. Ruth notes that QSP may be the hardest to get, but when it does reach an exchange that's accessible, its market cap will go absolutely parabolic.
"I think 2022, we will see these do particularly well, likely towards the middle to the tail end of the year because it's gotta get that fundamental hype out of the communities and get pushed out," Ruth said.
He continued, "But these are hodls. If I have to wait for longer than 2022, I will. Just continue to monitor that the leadership teams are continuing to progress through their roadmaps and they're delivering."