Topic: MOST IMPORTANT POST FOR NEW INVESTORS - reply and keep on page 1. - page 2. (Read 378 times)

This is great advice. For whatever reason we fall for the "room to grow" myth when we first get into crypto. If every NFL team could draft Tom Brady, they likely would--same thing applies for coins. People will use the best available because they don't need to settle for anything less.

This is fantastic advice.  However, my guess is that those who need to read it most never will.
A simple example is a friend of mine who started posting like 5 comments a day about how he is investing in btc.
Yesterday, he boasted about buying 3k euro worth of ETN.
When I asked why he said, "Because it's cheap!"

So on one hand, I am glad that there is so much noob money flowing into coins with a "low price"
I saw this trend a week ago and have been able to do a lot of short trades and made a whopping $6500 this past week, the best I've done since I've started.
I've been able to nearly triple the amount of btc I have.

But, on the other hand, I am worried about the long term consequences.
With so many people investing in coins when their price is incredibly high with the false hope that these coins might reach btc's price then, wow, a lot of new investors will be burned.
This can really affect crypto as a whole as crypto's reputation can get tarnished in the mainstream's eyes and inhibit new money coming in.
This can really make the bubble market pop.

Try to do numbers when investing, the math behind it all earns you money. The gut feeling usually leads to bad decisions.

thx for your kind hearted topics,usually ,commen people cant distinguish the "good project" from "not good project",the most readable factor for commen people is the price of each coin,so people may go to a wrong investment path.

some careful people might read the white-paper to learn the project's meaning.but the contents in the white-paper are too abstract for amateurs,even they completely read over the white-paper ,still dont know whats the matter.

i think the block-chain tech is simply a database-chain, just record each data trasfer and every one can record the transfer ,so the data cant be edified, thats the charm of this tech.but some other tech based on this foundation are really dazzled like smart contrats ,smart bridge ,etc. and there are also too many terms need to understanding ,like DAG ,ERC2.0 etc.

well in your opinion ,what's the good way for an "un-proffesional" to choos a good project and invest it?

1. the price per coin is irrelevant ....


for you to make bank on your investment the entire project price has to rise do you understand this??? (or appear to rise according to its cap)

You want cheap units to invest in - look at the total Market cap value.

No point saying i want coins under 1 dollar if there are billions of coins in that project???

Look it is simple view these projects as cakes - you want to invest in cakes that can go up in value right???

Now if you are offered crumbs which there are a billion crumbs for a $1 - then you are investing in a billion dollar cake. For your investment to double then this cake has to be resold for 2 billion dollars.

Now if you are offered a big slice for $ 100 dollars but there are only a million of those slices you are buying into a 100 million dollar cake. So for your investment to double you only have to hope the cake sells for 200 million. This cakes is 10x cheaper you see.

WAIT though people are telling me - I cant afford 100 bucks ..........well just buy a smaller slice of that 100 million dollar cake. You dont have to buy an entire coin or token.


THE SMALLER THE MARKET CAP OR TOTAL CAKE PRICE THE EASIER IT IS FOR YOU TO SEE THAT CAKE MAKE A PROFIT.(all things being equal)

THE PRICE OF CRUMBS DOES NOT MATTER..

NOW HAVING SAID ALL OF THAT - THAT IS JUST THE PRICE FACTOR. THAT IS ONE TINY FACTOR TO CONSIDER WHEN INVESTING.

If you can and read this thinking that cheaper coins were likely to give you better chance of returns just because the per coin price was cheap and you did not know to look at the total cake to see if you were buying into a cheap project please comment.

Or if you have anything to say - post it because I see 100s of comments on here per week with new people believing firmly that cheap coins per unit are good value.... often they are not.

If you dont have a lot of money then still look at low cap projects and find the low cap projects with the good dev teams that are below fair value.


For you that say everyone knows this obviously I will post threads demonstrating that this is not the case...

This is just one i spotted again just now and made me make this post...

https://bitcointalksearch.org/topic/advice-on-selecting-an-altcoin-under-010-for-a-decent-return-2600365


DO not buy expensive crumbs thinking your getting a good deal on your cake and that you have good chance of return because of that only.

Sure if the crumbs are cheap (like the market cap is very low for that project) then get your crumbs there.

I often get many PM's asking me why I have said invest in project A when project B is similar but is cheaper?? when I check to see what they could possibly mean i see they are taking about the individual coin price and not the total project value (market cap). This is a very very common mistake noob traders are making on this board.





Help other noobs buy commenting on this thread.


2 Just because a coin has a high market cap does not mean it is a good project to invest in - many are collusion scams. In the top 20 there are many fake inflated caps.

Look it is like this ALWAYS STUDY THE INITIAL DISTRIBUTION OF THE TOKENS/COINS


Think of it like this.

The wider the distribution like say you saw the coin was distributed to 10000;s of people at the start. The harder to make every one agree to hold them and force a crazy high price. Thus natural market forces are in play and the project finds its REAL value not a fake inflated value. Most of the alts with huge market caps even the top 10 are inflated fake caps because a hand ful of people simply hold all the coins and collude not to sell cheaply. These projects often offer nothing great at all. There are some exceptions of course - do your own research.


The narrow distribution like insta icos and instamined coins - so like oh look this ico was over in 2hours scams - these probably had big insiders buy them all so say 10 people own the vast majority. They then agree we will not sell them for less than 100x the pretend price we bought them for. I mean the project is probably just a white paper that will NEVER happen but they hold the price up 100x ico and it looks like it is in the top 20 in coin market cap. Then people actually start buying this crap from them.

Try to understand that high market cap coins can be very big schemes to take your BTC even the largest ones in the top 10.

ALWAY ANALYSE THE INITIAL DISTRIBUTION TO TELL IF YOU ARE BUYING INTO A SCHEME THAT CAN COLLAPSE AT ANY MOMENT WHEN THE INSIDERS AND WHALES DECIDE THEY WANT OUT.


Reply to this post and keep this thread on the first page to help other new investors.