That's why you shouldn't invest in altcoins with high market cap
Hello dear readers & Hive family,
As I pointed a couple of days ago, I just opened a website related to personal finance, investing, Bitcoin & altcoins where I plan to publish frequently some of my inner thoughts & eventually sell my own services. I also see it as a opportunity to learn about affiliate marketing, sales, SEO & related stuff.
I wrote a little article about why I think that you shouldn't invest in high market cap altcoins (in general terms less than #50 mcap but I'm thinking more about the first 10-20 alts after Bitcoin).
These aren't necessarily more ''reliable'' projects than others buried in the lower ranks (coff, coff, HIVE... coff) but usually beginners have stupid thoughts like:
-''Yeah, I'm going to invest some in XRP, NANO, EOS or ADA [insert overpriced coin here] to diversify [muh' partnerships] coz BTC is overpriced and bla bla bla...''
You know what I mean :)
I'm thinking if I should post the whole text on HIVE (crossposting it entirely) or (maybe) this format is better (little introduction, insights to the content of the post, link to the post). Feedback?
I'm also thinking about compiling a list of the (educational) posts as I write them. (Feedback again?)
Cmon, don't be shy :) Show me your thoughts in the comments.
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@tipu curate
Upvoted 👌 (Mana: 24/30)
Thanks!
With pleasure!
I'm on XTZ, ADA and BAT. What's your take?
All of them are'legit/good' projects depending on how you look at them. If I ha dto choose I would only invest in XTZ (from a purely investor perspective).
The 'worst' of them IMHO is ADA as their supply is ''infinite'' in my eyes and also the delays, but theorically they'll get things done soon or later. They have a good group of researchers/devs though (that what people say).
XTZ I never researched them deep enough, I only know that they're a smart contract platform with staking & very good tech. Don't ask me why, maybe it's their marketing, coinbase listing and the fact that they never experienced a bull cycle, but I like them.
BAT. I'm using Brave daily and I love the utility that they provide, but (again don't ask me why), I don't feel specially attracted by their tokenomics.
The whole point of my post is to remark the 'fact' that a lot of people (specially newbies) are forgetting about bitcoin because they think that it's 'old tech'. And it's very necessary to understand it to realize the whole point of 'crypto'.
I have to say, I'm a bit maximalist in that sense. Take my opinion with a grain of salt. I'm a microcap/bitcoin player. HIVE is my highest mcap coin (even at 0,1$). But nowadays I'm not that 'diversified' (If it's still possible in the space). I'm in 3-5 projects max. You can't understand in what you're investing if you have like ~20 different coins or so. You're (potencially) more uninformed & more likely to FOMO/panic selling.
Hope you get my point :)
I should say, this isn't financial advise.
Have a good day.
Thank you. Appreciate your analysis. Have a great day!
You're always welcome :)
I think you should post your article completely on HIVE. It is really good, then crosspost it in your new web
noted! Thanks buddy :)
I agree.
There are many other aspects to consider when deciding where to invest.
Experience in the development and mgmt team.
Pre-mined coins.
Distribution of coins.
Inflation.
Liquidity.
Project growth potential.
Just as with any other investment, you have to know as much as you can about the project and then decide at your own risk. Marketcap is just one variable and not the most relevant one.
Just read about Ripple Co-founder selling all those coins lately...
That's why many BTC maximalists call them shitcoins,,,,,just marketing the founders do to get rich at the expense of uninformed investors.
Trader's is a different story, they just get in to get out, not for the long term.
Agree completely with you santigs, for all these reasons a top #50 project with bad marketing (for example) can be 'trash' compared with one on the top 100-200 with good tokenomics & dedicated team.
We shouldn't forget that 'by definition' a higher mcap coin have less grown potential compared with anothe rone with lesser mcap.
Have a good day & thanks for the input!
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