Hi all,
So as the title says, I am having difficulty squaring off percentage gain with pair/fiat-gain on altcoins.
On the one hand, I can see that 50% is 50% is 50%, no matter what way you spin the maths of it. And therefore every quid put in can give you back one and a half.
However, I favour a very aggressive trading strategy (possibly not a wonderful idea, but hey, my money
), and I'm being draw to the idea that it's much easier for a $0.01 coin to go to say $0.05, than it is for a higher market-cap asset like BTC to go from 10K to 50K.
I suspect that I am mentally falling prey to some kind of gambler's fallacy here, but there are so many examples....
Anyone got a good source/video/article etc that might be able to help me out?
In a nutshell, I have some Eth, I want to trade, but I am not sure whether to take a massive punt on the shitcoins, or go slower and steadier with the established ones. My instinct is to take the punt. But it's only that - instinct. I have a gambly streak
Advice appreciated.
Yes, but the interest in said coin is also going to be much lower.
You're right that it would indeed be way easier for the "shitcoin" to go up x5-x10, but that doesn't mean it is more likely to happen.
There's over 1800 coins, chances that all of the lower ranking coins would all go up is extremely small, ( or even a small % of them.) while investing in something like XLM/ETH/ZEC might be less profitable, but the risk associated with them is much, much lower.
Not to mention that the volumes of these low cap coins is often so small that you on your own would be able to "crash" the market. I believe that on average only ~2-3% of the market supply is actively being traded.
However, I favour a very aggressive trading strategy (possibly not a wonderful idea, but hey, my money
), and I'm being draw to the idea that it's much easier for a $0.01 coin to go to say $0.05, than it is for a higher market-cap asset like BTC to go from 10K to 50K.
Not if the supply is bigger.
Tron is a prime example of this, while it is only 0.06$$, it has a marketcap of ~5billion dollars.