Topic: Tricky situation for Altcoin investment - page 3. (Read 642 times)

this is why risk management is important, only allocating what you can afford to lose to invest in new project doesn't matter if the new project might increqase multiple times it also have the chance of going to zero.
with risk management only small portion of investment allocated for these new coins but it could necessarily be one of the largest contributor towards the investment portfolio considering sometime the growth of new project altcoin are so massive that it dwarf the investment return rate of other investment like bitcoin and ethereum.
but of course its 1 out of 5 that the project just gonna outright fail and then value plummet. but with small capital, it can grow really high or it can just vanish, and even if worst scenario happened, no need to worry.

I agree with your suggestions, sticking to some top alt coin actually is a better idea, because there are top altcoin that can do tremendously well and help the investors increase their money in several folds, most altcoin priced at one or two digits have better chances of yielding profits in multiple folds all at once so it becomes small investors choice.

There are some good and top altcoins out there which are good and still have a future of getting multiplied in multiple folds. Investing in but coin to be able to get a reasonable profit out of it's appreciation could sometimes be capital intensive, and because you would need a good amount of money to see significant profit, most times smaller investors prefer altcoins with which they could get significant profits regardless of their capitals. It will take a lot of time, research and knowledge in TA and Fundamental analysis to be able to get all that information that had to do with supply and demand.

You are right! Though it is not wrong for anyone to believe that coins that are low priced have the potential to rise and make crazy gains, I think some people do it too much (not just newbies but especially them). They always think that the token that has its price as $0.000001 has more tendency to increase than that of $0.01. While this can be true, there are a lot of factors that will determine which token is better. The tokenomics matters a lot; how many tokens are in total? Can more be minted?!! What is the respective token allocation/distribution to different segments of the project? The team behind the project is super important as well. The token use case also matters.

To keep it safe, we must do this but can't hold those gems hunters as they are happy hunting those projects that promise them XXX returns rather than choosing known coins like BTC and ETH.

Anyways, investing depends on our risk appetite. Some people have no worry about investing in new projects as they are not afraid to lose their money as well but those who are looking for safe investment (at least), better not dare to try this because that only will lead to losing, especially when doubts and uncertainty arise.

Altcoins can be a good source of investment only if you hold them for a short term because the probability of these altcoins dumping and leaving you in the blue is very high and that's why it's always advisable to go for a short term investment with altcoins especially when the market starts pumping because like what you said Bitcoin rise always influences and pushes other coins around it.

what matters though is that these investors are making a profit regardless of which altcoin they may invest in. what is just needed to point out to them is just to buy the altcoins that are not scams like the ones not listed in any exchanges because this will just make them hold forever without a market to dump.

BTC or altcoins as long as it's listed in major exchanges, i think they will be fine until the bear market begins. but it will be safer to just be on BTC. 
we've seen BTC dropped and rise from $3800 to $69K, it won't be different this time it will also soar to mars.

Actually, I think Bitcoin is much riskier because it's more volatile but there are also lots of altcoins out there. If we are talkin about those new altcoins or tokens which background is still not fully known, well obviously we would say that they are much riskier than in Bitcoin.

There are false information in the crypto world. It's normal even on other things but if we will only investigate further, we can always differentiate them from the legit one's. That is how we not feed those scammers and the people behind those. Of course they make it more tempting because that is the only way for them to attract people but those wise people will think it's too good to be true and they can avoid it easily.

Low prices are tempting, but they dont tell the whole story. Many crypto market beginners fall into this trap of quantity over quality.

Theres more, right? Crypto is more complicated than the price-to-supply ratio. New investors sometimes want immediate gains without understanding market dynamics or technology. Great danger, great return, but without plan and expertise; it is likely to bring disaster

Sticking to known cryptocurrencies may sound wise, but its based on a deeper understanding of market fluctuations. Long-term investing in fundamentals, not hype, is key. Your advise is good, but can newcomers resist the lure of fast riches? Thats the problem, right? Learning to value sustainable growth over the alluring but sometimes unattainable promise of exponential returns is difficult.

I agree with OP here because before when I was still new in the Bitcoin or cryptocurrency market, I was lured with altcoins and at that time most of my funds were in Bitcoin but suddenly I was introduced and lured with altcoins, by this I was starting to convert some of my Bitcoins to altcoins and later on I realized that if I just hold Bitcoin, I didn't lose more or I even make more profits.

Those newbies are right, on Bitcoin not much profit can be expected but with alts much more, they rise when btc rises (no matter how useless they may be, just existence is enough).

However, you are also right, stick to top altcoins and bitcoin. Top altcoins are nice balance between safety and profit, Bitcoin is ofc safer than all.

You are not alone there are a lot of people with similar story and it's the biggest misconception that low price coins have higher chances of giving more returns and people still get deceived by this illogical logic. Even I have wasted a lot of money with shitcoins which never ever reached their launch price itself and my very recent experience was with a shit coin named Nebilo which around $2 and half dollars I wasted over $1400 because once I invested it dropped drastically and then extreme fluctuations started as a result Binance delisted the coin which was like last nail in coffin now the coin is trading at $0.02. Hence though of educating the crowd here to avoid the same mistake I did as noone should repeat the same mistake again I have been in this domain for a while still I can make this mistake our of greed then imagine the vulnerability of newbie.

It's all due to a lack of knowledge because new investors usually rush it and instead of gaining knowledge first they start making investments after getting influenced by people who share their success stories on social media platforms once those newbies see that people are earning so much profit from trading, they don't think about anything and start looking for people that can guide them a little bit or start looking for groups that provide signals and start following those signals.

We all know that these signal groups are created by desperate traders who couldn't gain success through their trading and now they trap newbies and charge them money and share signals with them which barely become successful and if they manage to make a few successful trades, they keep sharing them again and again to trap new users into buying their premium memberships.

I have a story of buying cheap coins and holding them waiting for the bull season but too unfortunate that I'd never see my investment grow, it stay at the price at the time I bought them, my patience is really in vain. And this makes me realize that buying coins doesn't matter if the price is high or expensive but at least we have the chance to make a profit from them rather than wasting our money and time on these cheap shitcoins. Invest only in solid and working projects rather than those who give sweet promises as they fail to provide them.

FOMO is the word, so many people get fomo'd when some popular influencers sharing their massive profit from investing in social media, the newbies that sees that post hurrying to invest into some random altcoin that they see the first moment and think it will be the next massive increase of an altcoin, which might be true if they are lucky enough but honestly the chance is slim.
for someone to truly gain massive increase in altcoin and determine which altcoin are actually worth the investment they should know that it also requires analysis before making investment.
seeing which one of the altcoin gonna break the treshold and increase to even higher level. only then someone could score massive profit from such investment.

  Actually, there is nothing wrong with investing in altcoins, as long as you know how to choose and have a basis for research before you buy other crypto assets. Because if you just base it on hype, what others say, or just guess, it's not likely that your investment will be wasted if that's what you base it on.

  It's just that in reality, most newbies are gamblers; they don't care if they lose; they don't think about studying or knowing it first because, yes, they think positively, but that's not enough to make what they expect in cryptocurrency happen. This kind of mindset will really lead them astray from believing this, for sure.

Indeed, the common mistakes beginners make when the market is heading upward and even before it is heading upward are countless. The beginner’s mistaken thinking that Bitcoin will not be pumped several times makes him put a large portion of his capital in altcoins instead of Bitcoin. Although Bitcoin is the most profitable and secure cryptocurrency in the market, its value increases over time as its supply decreases. Secondly, greed and the dream of getting rich quickly drive them to put their funds in meme coins projects and altcoins that are not top in the market. These shitcoins often lack market value, are managed by unknown teams, and usually do not have use cases or innovative ideas or either listed on disreputable exchange platforms, Or they may invest in scam tokens. These mistakes result from insufficient research and following recommendations from other traders or individuals. The best approach is to diversify the investment in terms of the largest portion held in Bitcoin and the rest in the top altcoins in the market. Newbie investors should adhere to a specific strategy, hold their assets for the long term patiently, and strive to educate themselves and learn from the mistakes of other investors to achieve their goals and aspirations in the bull market.

What I have seen so far is that newbies are afraid to accumulate when the price of bitcoin and other cryptocurrencies is down. For example, a few months ago, Bitcoin was around $15K, and many of us were afraid to accumulate. But now many people are asking if it is the right time to invest or not. So I think this is the first common mistake newbies have been making. Secondly, they can't choose the right coin at the right time. It's true that altcoin gives us a couple of X during a bull run, but it's not applicable to every coin. It could dump a couple of X as well. In this case, Bitcoin is more secure; it would not suddenly drop 2x. So I can say that a Bitcoin investment is less risky, though with lower profits. We shouldn't divert our minds with the excuse that Bitcoin is already high and move to altcoins. Just remember the ATH of Bitcoin.

Some people who lose money today in altcoins investment did that because of ignorant of knowing when a bullrun will come and when a bullrun will not come, sometimes they follow the steps of the promoters via Instagram twitter and Facebook to rush and purchase some of the altcoins that influencers is promoting and by the end of it those end up of not surviving a bearish, so it's better for investor or whosoever that is investing in coin to know and verify if the coin have a potential or not, so many people invest in a coin in which they have not know how effective is the coin in the market,  so from my observation I think that should be one of the major reasons while some people invested wrongly.

This is indeed one of the greatest problem for newbies into the system, they think bitcoin is already too high for them to start accumulating, but the true fact is, even in the nearest future they will still regret why they did not accumulate bitcoin when they had the opportunity to do so, and they make the mistake of investing on newly launched coins that their price might not even be equal to 1 dollar, I remember when XRP won against the US SEC their trading volume became higher than that of bitcoin but yet their price is still not up to 1% of Bitcoin. After Bitcoin there is no second best, we only have some bunch of shitcoin who are fighting their way to gain trust, this mistake many newbies make, has been the major reason I recommend knowledge before investment, there is no need to rush into the system without proper understanding.

Beat in what aspect? Market price? Is it the only factor to determine which one is best? Also there’s no need to. Bitcoin is a good investment and also altcoins. These two categories just vary depending on what type of investor you are. You may freely choose between short term and long term, higher rate of increase/decrease or stability. If it is concerning the new ones in this industry then it is on their end which one to choose as their investment. Spoonfeeding them won’t be of any help.All coins has its own potential to generate profit, end of discussion.Volatility is present to all cryptos in the first place which makes no coin safe from dumps.