Bitcoin Forum

Like for every investment, you need to check it frequently and evaluate how to proceed. It is similar for Altcoins and very important.

Crypto currencies are a very fast evolving field of investment because of tech.
Innovation is changing opportunities quickly and we need to select good Altcoins for it.

If our bags are still loaded and we have many of such outdated Altcoins, we sit already at a loss. But we should prevent to get more loss by selling our bags and exchange it to a more reliable (Bitcoin) or innovative (Ethereum, Avalanche, Algorand) coin.

And next time, we should always review coins to prevent a loss. When a coin is reviewed badly by experts, like Tron and EOS have received bad reviews by experts, it is time to sell quickly.
But its even more important right now to sell all outdated Altcoin bags like Tron and EOS.

Why can Altcoins fail?

Altcoins are very volatile and many Altcoins have failed so far. Many ppl have lost money by holding failed coins.
But how can we make sure to avoid such failing Altcoins?

We should have a very close look to such Altcoins and try to find out about very important details:

- Is it a promising coin where new technology is used? For example, Litecoin and Nano are using a very ild technology.
- Are developers very experienced and professional to set up a good Code?
- Is it a coin involved in fraud (like BSV, Ripple or BCH)
- Is it a coin where security has been good or weak (avoid hacked coins)

Because if coins are not interesting, have not good tech or people are not interested in it, such coins will fail.

When we have done our research, we can know why some coins will fail and how to avoid it.

Many coins have been started when Cryptocurrencies were less developed and much less innovative.
And here it is a big problem for many Altcoins: using outdated Blockchain technology.

A good example for such an issue is Tron.
Tron was developed from Justin Sun to compete against Ethereum 1.0.
But Tron was such a badly coded coin, it couldn't even compete against Ethereum and lost many marketcap against Ethereum.
Now, since Ethereum 2.0 is launched, Tron is completely embarrassed because of it's old tech.

Tron is based on an old technology where more innovative coins are outperforming Tron massively.
Tron is losing relevance very quickly compared to such new and more modern coins like Ethereum 2.0, Avalanche or Algorand.

One more old coin is EOS. It could not meet expectations and was even place 5 in market cap until it is now very irrelevant. People still holding EOS are having a big loss.
Lucky, who got out timely, to prevent a loss.

It depends on what altcoin you are holding right now but I agree on the general message of this thread that Altcoin relevance comes and go pretty quick. I do invest on EOS before when they are still new and hype but luckily I get out earlier when they are still on the top market because they have a very complicated blockchain with ram and fee too fuel every transaction while they have a very low TPS on their blockchain compared to competitors.

I do have Etherum as long term investment though which is an exception to the rules that’s why I said it depends on what altcoin you are holding because Ethereum just like Bitcoin will always have relevance in crypto as first mover in blockchain.

There are still good alts in the market. The majority of them are wortheless, yeah. However, main alts like ETH and SOL are here to stay 

You know it's important to filter out the altcoin you don't need to the better ones moreover newly listed coin in the space some of them can't be trusted neither are they reliable to hold for long instead I will always encourage people to have bitcoin in your portfolios. Apart from Ethereum and BNB, Polygon and few other coin I didn't think people should hold irrelevant coins in their bags since they aren't worth holdings  and they are also being driven by Bitcoin price and whenever the price goes down it affects all every coin that depends on bitcoin for growth.

most of the altcoins circulating on the market are trash, so an investor needs to do research and thoroughly check the altcoin they want to invest in. there have been many cases of altcons offering various promises and claiming that their projects are promising, but most altcoins like this end up being scams and very few altcoins actually survive in the market or even if the altcon survives in the market the price could have fallen very deeply.

investors should not need to invest in altcoins whose credibility is unclear, such as meme coins or similar altcoins, and focus more on popular altcoins whose credibility is clear. if you are confused, cmc can be a reference for investors to see what popular altcoins they have the potential to buy.

There are so many weird claims in your posts, but i will talk about only 2 of them.

Like tell me more about the Ripple fraud. And by that i mean, give me the link to the fraud case, not some opinion piece where ripple is a corporate coin. I was in crypto when that sale happened, so i must have missed it.

Also you don't even seem to know why EOS failed. You just think it's "outdated" tech.

I can tell you the reason, and it's not because main dev couldn't code or "code" would be bad. In fact he was highly innovative and gifted coder. Reason is that EOS and for example ICT are trying to create these huge all purpose platforms, with an attitude that "build it and they will come".

Problem is that these kind of monster blockchains aren't designed for any real purpose. They just wait that someone invents that purpose, so most of the platform isn't needed. If the blockchain is designed for specific reason, it stays lite and cleaner. And people who want to builld for that, know that they should choose a blockchain build specifically for their purposes.

EOS and the other popular ones like 5 years ago and more are dropping their rankings and popularity in the market. ADA despite still at the top rank, I don't think it's also worth it to hold. There are other once popularity altcoins like NEO as well that have been less popular and volume became lesser this time. Some good alts are there but you should limit yourself into holding a few of them because holding everything in altcoin isn't a good strategy IMHO.

most of the time with alt bags, I just consider it short term holding.

keeping your alt bags for more than 1 cycle of bullrun and bearish just gonna be harmful to your portfolio later on because altcoin easily gets replaced by other coin that gets all the hypes.
can't sweat about coin like EOS and TRON getting replaced by newest more fancy coin and finally fall short both in volume and market cap because, well people tend to just disregard altcoin that's old and have no hypes.

so, aim for holding alts only when you're in very early stage of bullrun, other than that, just buy BTC like what the big guy is doing.

I agree, though I would buy ETH and, just like you, I don't get attached to the memecoins or small or newer alts that much, as I usually don't consider them as a long-term investment.

I personally hold only a few coins at high amount, and the rest I do not care about all that much. I personally like ETH, BNB, SOL, LTC, ADA and these are it. Nothing more than that, do I have any money in other things? I do, and they are very small, I just care about these and have most of my money in these and I trust them. This is why I think it is quite important to notice that we are going to end up with something that will definitely profit us. This is why we should consider how we could deal with something that will take some time.

I believe that we could make some money from alts, if we trust them then we are going to see something changing if there is any new ones, like ADA wasn't on my list back in the day, but after 2021 I started to get some of that too.

This is why it is important to know if you see a good new one, and add that to your portfolio as well, that is going to be the most important part, and I believe that is where people miss their most chances. If a project is good, then it's smart to buy it after the hype slows down, because then if it's good it will go up again eventually and that is when you start to make your profit, it should be noted and could be done very well.

Oh well, there are really investors who loves to take that risk and go with shitcoins and meme coins instead of solid coins that the OP mentioned. OG investors prefer the route that is easy for us, let's say Bitcoin and Ethereum and just buy on it and be a bagholder, accumulate over time, and then wait for the right time to sell, easy as that. And then we can sleep as night without thinking that the next day, the price will not go literally to 0. Nevertheless, there could be a new set of investors or generations that prefer new coins but then again, the risk is too high, but they are willing to take that for higher rewards. So we can't really say what to do with them, it's their money anyways. But for us, yeah, I do agree, I would go with Bitcoin and Ethereum any time of the day, regardless of what cycle we are in. And with that, to each it's own, and we can only hope that at the end of the day, everyone will make money specially that we are now in a bull run.

Utility is the key concept that every altcoin holder should consider. Crypto enthusiasts should ask questions like - why am I holding xx quantity of ETH, SOL,TON, Monero, USDT?  In my opinion, you should have reasons for holding some sort of altcoins. Obviously, technology is rendering some coins outdated as there relevance becomes outdated due to old technology. Same goes with gadgets like phones, cars, etc. New coins have the capacity to replace old coins when there is preference in utility. This means that project team members, from the onset, have to map out innovative strategies for growth and relevance in the crypto space. If there are no strategy for growth/relevance, then, the coin or token will fizzle out over time and probably become worthless. Ethereum is a good example of an altcoin that have maintained its utility/relevance to the crypto community till date.

Well I do say most of my crypto is in Bitcoin and not alt coins. But I would never want to sell all of my alt coins and only hodl Bitcoin.

It is something that us investors must do if we want the most profits. We can not only invest in my coin so it is better to diversify our crypto portfolios with other alts we think will have big gains.

I agree! Analysis and diversification for lesser risks are keys to gaining profit. That way, if one coin isn't going the way we intended it to, others might bring us good news.

I miss the most important criterion: How fair are the tokenomics (https://bitcointalk.org/index.php?topic=5499145.new#new)? The more coins were reserved for "devs" and often even for a "Foundation", the less sustainable the coin is, because devs will lose interest once they dumped their premine.

Another important criterion is: what's the target demographic? Does the coin solve a problem? Is an interesting ecosystem existing (tokens, services) or at least a plan to attract services (in the case of new coins)?

The other criteria listed in the OP are "so-so":

Almost irrelevant. "New technologies" since 2015 or so are mostly technobabble. Almost all coins are based on 1999 tech (PBFT), including Ethereum. And if a new breakthrough is made, most coins can adopt it.

Somewhat relevant, but they can be both "professional" and scammers.

If a coin is directly a scam (e.g. Zoe Cash, OneCoin, Bitconnect, ZKsats) then it is a scam and will die very fastly. The coins you listed are not very interesting coins but also not really fraudulent ones.

Depends. Grin is quite good even if it has been 51% attacked.

You are right we shouldn’t have too much on our plate. Having so many altcoins does not increase the chances of you getting profit especially if you just mindlessly picked them out.

I also agree that we should leave outdated altcoins behind however we shouldn’t confuse old with outdated. Some altcoins have been in the scene for a long time but are still actively developing and improving.
Sometimes experts would have clashing opinions so it’s best to understand why a coin is good or bad so you can make your own conclusions and not just rely on what other people is saying.

Yeah, making your own decisions and analyses is essential to start getting ahead of others and thinking into the future a bit, knowing the pattern of some coins because of some prerequisite. It's just more convenient because you wouldn't be dependent on anybody's thoughts, and your profits or losses would be in your own hands.

I only hold altcoins and my portfolio is +50% currently so doing ok so far. The plan is to be +500% by the end of the bull run in the next 12 months.

Bitcoin is the safest crypto to hold yes, but you do not get the massive returns with Bitcoin like you can with altcoins.

My worst performing altcoins are Decentraland (-49%) and Casper (-45%) but I can afford to hold these and hope they make a comeback as I have many other altcoins that have given me big returns already.  

The main thing with altcoins that has already been mentioned above is to be diverse as it only takes 1 really good investment to cover a few bad losses.

Depends on what kind of analysis was that, as there are two types of them that I know and that is ; one is technical and the other is fundamental. I still think that analysis are only important if you are a trader but for an investor especially if the coin that they want to invest with is BTC, they can just buy and HODL it right away. They can even go in a vacation and will only go back after some time to harvest their gain.

As for the diversification, I think the ones that are doing this the most are the investors and not the traders because of the nature of their chosen niche. You know, if you are a trader, you can just trade a single coin again and again but in investing, we are require to HODL, so it's a good idea to have other coins too in our bags, just in case one doesn't perform well, so that we can still earn on the other and the time that we spend hodling, won't totally be wasted.

Yeah, I agree that this doesn't really sound like a bad plan at all. I don't have much, I have dust that I can't get out because it costs more to get them out than what they are worth, but I am going to check m ywallets and see if anything is left in anywhere. I had a little bit of ARB left, and I think I am not trusting that too much these days, so I am going to just take that one out and put it on ETH for now. Wasn't a big amount, it was like maybe 50 bucks or so, don't know what happened to it, I do hope it went up, but I do believe that its time to sell and get to something more trustworthy for me. In the end why would we keep bags that we do not have any trust in, makes no sense to do that.

I largely believe in bitcoin and think it's one of the only coins that NEEDS to exist but there is room for some other projects that are promising and can be used as a test bed for crypto.  In the long term I don't think anyone needs to hold altcoins but in the short term some of them can be very profitable just need to know how to spot good entry and exit points and stuck to a plan.

I think it depends on what altcoin you choose and that should be a consideration before entering it, because the value of altcoins can fluctuate greatly so be prepared for potential losses and also profits that will occur, make sure the platform you use is by the relevant authorities and need to be careful in placing it to protect your funds, with these factors to maximize investment with market capitalization and community strength it can be an important aspect that you need to check when deciding to invest in altcoins need to take into account the list of projects on the top exchanges.

* ETH stands here, ominously watching from behind * ;) I do believe, though, that it's viable to go long-term with ETH all the way.

Honestly I find this helpful and true. If you have some bags, combine to mean something, selling them all and putting that into something that could actually make money, would be a good idea, should be done.

I think it's clear that a lot of people are missing that, we are talking about people who are making mistakes, and we can't really do that, it is not the smart way and I would say that it would be a wrong move in the end, we can't provide with something like that. In the end, if we keep doing what we are doing, then we could definitely cheer on, it would be fine, but we are usually doing something that doesn't make sense at all.

What I think will happen in this case is that it is going to be a tough one, and I think that's the point we are having here, many people who hold something for years, usually have some emotional connection to it and that's why they are making a mistake by keep holding them. Best idea would be just getting rid of them, and getting something decent. No reason to keep a dozen or more dust from some crashed stuff, if they worth even ten bucks, just get that ten bucks then, how small or big doesn't matter, but if it is big then it is definitely right move to just get rid of them.

If they've been there for years and only drop your portfolio down, sure, but if they are in your portfolio for only a week or even some months, it's totally okay to hold them in spot if the projects are decent and aren't part of some shady stuff (like I've recently seen with $DESO, founder of which was charged by SEC with fraud (info from CoinMarketCap) ). The price can go here and there, but you can always look after the projects' news and decide for yourself if it's worth it to hold to your bags for the time to come.

Made sense on why you put most of your saving in BTC because it is the only coin where we can trust always. There is no need to explain if what it can do because of that. Another thing on why you won't sell your alts is because like you said they are only a little. So, it may not make sense at all. You are only going to pay more fees than the money that you can get, just in case you do.

I have been holding some Tron coins when it was trading above 600 satoshi in 2019. Even I keep on staking, I still could not recover my initial investments. Like Elon Musk adapted dogecoin, if some magic on Tron happens, I may escape. This is the reason, altcoin investments are not profitable if you aim for multiplying your bitcoins as most altcoins are not growing in terms of BTC but only on USD rates.

That is so true, and I would like to add besides the tokens and coins that, you mentioned Doge was on the verge of extinction until Musk pumped it and adopted it, and that started the meme era; the technology and the trend keep changing what works now and what's in now may not work or adopted in the coming months, so be sure to check every coins or tokens that are in your portfolio and be sure to quick to dump or sell when there is a rug pull or the project has been abandon.
If you won't follow the development of the coin or token, do not invest; it will save you money and effort.

A person should always consider the odds behind his actions. That way, he won't be sad if things go south, as this was his decision (to invest in some coin, for this example).

Hmm, that is absolutely right!
Investors need to do research before investing in a lay Altcoins because I have seen many Altcoins that promise new events and additions to attract people through promotion, but when investors participate in the project, these people rob people by rugpulling. So something like this should be avoided completely, Don't invest in any coin whose credibility is not clear because if you invest in it, are you sure that you can lose the possibilities? My own opinion is that one should prefer Bitcoin first and then Etherum, SOL BNB, etc for investment. And if possible, invest in altcoin as much as possible, but that too in the top altcoin because there is less risk in these altcoins as compared to lay alt or meme coin. 
 
So it's meant to say that you should never try to put your investment in something that will cause you loss instead of benefit.

as much as I like ETH for long term investment.

I have opinion that ETH can probably be replaced by its competitor in the future, ETH is unlike BTC where it got supported by maximalist and institutional investors because it's the first ever crypto hailed as the gold of cryptocurrency, ETH has other tough competition like solana, ton and so on with same capability if not better and as good community. these other project are also trying to create their own machine such as solana with their glorified SVM and TON's TVM which got the upper hand of deploying later to sort out all problem that EVM is having prominently in scalability aspect and giving much faster speed.

in that regard I think ETH is not so safe from being replaced.

I see Altcoins as a way to get more Bitcoin, that it literally my only use case for them. I am not incouding Ethereum in that because I do believe in Ethereum but all other Altcoins I buy & hold short to medium terk, in the hope of selling to convert into Bitcoin. I have had some success with this but nothing is guaranteed.

Trusting on altcoins for a long term makes no sense to me at all, and I get it funny how people feel comfortable hodling alts bag with so much trust on them. Altcoins existence is base on current hype, and once the hype is fading so the altcoin value gradually fades till it dump.

No other time to hold alt than during an anticipated bullrun season and after the circle you either dump those bags as quick as possible or you be the one to get dumped because as new tokens continue to develop rapidly that's how the network of altcoins investors moves from the old to the new and it keeps going on, a reason why you could hardly see a new token surviving for long except it has a very strong developers and sponsorship behind.

As much as can be understood from your comments. Here are some of the things that have been said about altcoins. So whatever coin you invest in, you need to monitor it carefully. For example currently ethereum is around $2600 which is quite viable for long girls. But for the short term, all other altcoins will be very ricks.

Yeah true, I mean I get something like ETH, but there are people who have no idea how things work and they end up trying to do something different and that is why it is going to be some problem for some people, we should not consider that as an issue at all.

We need to consider that life isn't always that simple and we are talking about something that is taking some time, it is not going to be that great and we can find this to be an issue if we keep holding it for a long time. Just keep on selling when you get some alts, definitely the ones which are very low on the rankings, there is absolutely no reason to keep them and I think it is going to be not an easy thing to do, we are going to end up with something that may take a while.

Still think that we need some devirsification in crypto. Bitcoin is the main part of my portfolio but i can't just sell all my alts

Yea, this is expected of course it is not advisable to keep what you don't need, delist some that are not yielding anything to give way for the good ones, my problem is how to identify a good project, athough there are still new good projects but many scam projects had made it almost impossible for us to identify the good ones.
Bitcoin is the most trusted coin as such it is required of everyone in the crypto space to have a bulky portfolio in Bitcoin before diversifying to altcoins, there is no doubt that the altcoins you mentioned remains the best in terms of diversification but one can not totally rely on them for some reasons which is value and trust in some case, Bitcoin remains the best in terms of value and many not manetioned qualities but I also support diversification, although I was not in support of this earlier but now i feel that once investors invest on the altcoins that follows the direction of Bitcoin there may not be a problem for the investors that have those altcoins in their portfolio.

The only way to know good project is to just go for the trusted coin in the market and or maybe you go for top 10 to 20 altcoin in the market, with this you can hold them for long without having the fear the your portfolios would crash or sink down. Most importantly your bitcoin holding should exceed any other holding in your portfolio because if you have altcoin more than bitcoin it easily affects your investment when the market seems to be a bit bad or when there seems to be bad news in the market.

I only like ltc, xmr, doge and eth. The others are no good. Ltc is failing price-wise but the network activity on ltc says ltc is here to stay. Xmr is the king of privacy. Doge is the king of memes and eth is the original shitcoin factory.

Combine these with btc and you’ll have a solid crypto portfolio.

You know this would've been way easier if we're talking about bitcoin or ethereum, cause if that's the case we could easily just back shit up with the fact that these coins have the purpose to boot to propel and bolster itself up during bull or bear seasons, but it's way different when we're talking about Altcoins, especially the type to not have enough features to be likable, like memecoins for example, but have the community and the supporters behind them that makes it enough for these coins to have sizable marketcaps.

Do we get rid of them as well? I don't think so. Let's be real here, we're not just here to love and support every futuristic projects like it's the second coming of Christ of whatever. We're here to make money and honestly speaking, if investing on a memecoin's gonna make me a millionaire, then by all means, even if it has hot garbage feature.

Bit of a bold statement to say others are no good.

Arcblock has given me 30x in the last 12 months, Jasmy 10x, Kaspa, 10x .

The key with altcoins is to be diverse , you could hold 10 and 8 of them might fail but 2 of them will do more than enough to bag you great profits overall.

I've been doing this since I created my first portfolio because if you do not follow the development of the coins you've invested in, you will lose your investment.

Once you included the coin in your portfolio, you have to check the roadmap, and if they have social accounts, you need to follow them to see if they are on target with the roadmap and development.

It's also very important not to have a personal attachment to coins that are in your portfolio. I used to do that with the PVE coins I invested in. I thought things were still looking good, but when I saw a huge 50% dip in the price, it was too late to dump it, resulting in a 90% loss.

Sounds sensible.
Especially if it's only small amounts, it's not worth leaving them in coins that you no longer believe in. That only ties up capital - regardless of whether it's "only" $50 - and you end up getting annoyed if the value continues to fall.

ETH is definitely the more solid choice, especially if you just want to park it until a better opportunity arises. And yes, sometimes it's better to make the cut and continue with a clean wallet instead of dragging legacy assets with you.

It's basically like a wardrobe: if you haven't used it for ages and it's just taking up space, it's better to get rid of it and make room for something new.

I will not completely subscribe to the idea of getting rid of all altcoins because there are few that are worth holding like SOL, ETH and a few others. Their profit potential is high, maybe even higher than bitcoin but that does not mean one should go all in on them. What I will always recommend is anywhere close to 80% bitcoin and 20% altcoin so that one will minimize risk and maximize profits. This is how I plan to proceed, others might have better formular for allocation.

You think alts has more potential than in BTC, therefore you need to allocate more on them than in BTC. I think that was true and at the same time false. True because alts value are still smaller than in BTC, so they may still not struggle on reaching more heights but false because there are talks that BTC can still reach a very high price like 1 million dollars or more in the future.

For maximizing profits, all-in works better here, while if we want to still profit but at the same time managing the risk, then this is where diversification can take place. Allocation can depend on the capital. If we have more, then we can adjust and make BTC 70 percent instead or lower.

If you want to buy dips and take some profit on upward movements you need something you will be buying with.

Just yesterday or so at https://www.bitmart.com/trade/en-US?layout=pro&theme=dark&symbol=DMD_BTC a good example happened of why it is very important to have your buy offers already in place before a dip or dump happens; I stupidly had not had my buy offers column more than just barely started building downward before that dump happened, as I had only just brought some DMD back onto the exchange and not much of it had sold yet so I had not yet gotten much proceeds of sells with which to build my buy-side.

I went to watch a couple or few episodes of a TV show and came back to keyboard to find that not only had a deep deep dump/dip happened but already the price had recovered massively from the bottom that had been hit.

Thus my failure to have already had buy offers in place all the way down at least as deep as that dip/dump penetrated caused me to miss out on the extreme-bargains pricerange of that dip or dump.

So if you are hoping or planning to buy dips, be aware that the most-delicious ones can easily be mostly over before you even become aware they have happened, thus that it is important to be in place with your buy offers ahead of time so it is your offers the dumpers or dippers are dipping or dumping onto.

Similar applies the other way up to skyrockets. Typically with a real skyrocket the price almopst instantly jumps back down half the range it jumped, so again you miss the best part of it if you don't have sell offers already up there waiting for it.

Hence the strategy of building columns of offers "all the way" down and up from the "spread".

This has historically made such a massive difference that the much-mentioned dangers of leaving stuff on exchanges turned out to be just a cost of doing business, a dent in profits, rather than any kind of serious loss, at least once one has managed to diversify off of one's first exchange and especially once one is on a few, and over the more than a decade gone by it has even seemed like the percent of exchanges, or at least the percent of those one might actually consider giving a try, that turn out to be created from the outset with a plan of using "oops we got hacked" as an exit-plan even seems to have gone down somewhat.

(Or is that impression merely from me maybe being a bit more conservative when considering exchanges? Hmm.)

All this means that ultimately it seems better to be buying with an altcoin than with fiat, since over the more than a decade already of doing this fiat has surely gone down in value, so had I been trading against fiat rather than against altcoins I am pretty darn sure I would have had a whole bunch of built-in loss simply from choosing such a shitcoin; fiat is for sure long term a shitcoin, in theory some other alts might not be, or certainly not as shitty as fiat.

Also, if one is actually successful, surely in the long run it ought to be expected that one would be earning, and buying fiat with, crypto rather than earning, and buying crypto with, fiat?

Unless you somehow expect your fiat earnings to keep up with or exceed your crypto earnings long term???


-MarkM-

Sounds like a solid allocation.
BTC as the main anchor simply provides the most security in the crypto space, and with a small altcoin share you can still take the chances of higher profits. SOL and ETH are definitely among the stronger candidates - they not only have hype, but also real usage and developer activity.

In the end, it all comes down to your own risk appetite anyway. Some prefer to play it safe, others want to gamble more. The important thing is not to invest everything in projects you're not convinced about.

80/20 sounds like a good balance between "sleeping soundly" and "still getting a slice of the cake".