Struggle of Analyzing Altcoins

[mrob82]

One of the biggest issues I'm having with choosing newer, or revitalized, Alts is making the decision on whether to go with a basket of Alts or pick a select few.  I have a very technical background and have traded options for 15+ years successfully.  Here is my dilemma when crossing the bridge in my mind:

1A.  Application
1B.  Adoption

Notice 1A and 1B, I can't figure out which one is more important for investment purposes.  I am looking at some of these altcoins for the long term, minimum 5 years.  For example, right now I'm looking at 2 specific altcoins, STX and VET.

I see STX having a great first step to enter the industry, they focus on security and infrastructure breaches for lack of better terminology.  Here's my problem, adoption is going to do great - my concern is that the application is either going to break down or just be horrible from the get go.  There is virtually no way to 100% safe, and to replace the internet - my mind can't go there right now.

I see VET being a great model for a business that want to tie everything together and they have a great model to target different business areas.  They want to drive all of the cores within a business together from infrastructure to the general flow of information.  I see a great application here that could really be used globally; however, unless there is a significant adoption of bitcoin and Altcoins globally - VET could potentially have a hard time.

First off, I'm not looking for the next Altcoin that's going to become the next BTC.  I'm looking to find Altcoins that are going to force a foothold in the crytpo market or be able to find a specific niche.

So should I be focusing on finding an Altcoin that firmly checks both 1A/1B?  Should 1A hold more weight than 1B, or vice versa?  Should I look for a strong check in one area and a mediocre check in another?  Or is my thinking on Altcoins completely wrong.......

[Lorokan]

When it comes to analyzing altcoins, you do not have to generalize; there are no special ways to analyse, you have to read the presents, figure out the Whitepaper, token product progress etc and also important fact is market emotions of the particular project.

[Kavelj22]

If it's just about analysing tokens to make the good investment then the most secure way is to focus on the top 100 altcoins in the market [CMC]. It's not a garantee that you will gain profit but easy to study/follow updates.
If you are looking for the right opportunity among new projects, then either you bet on someone by chance like most of people do either you have a completeknowledge about the project in little details. Otherwise, the lack of knowledge with investment money would surely send you to loss.

[20kevin20]

You can't figure out which is more important because you're probably after the same mindset I have: I personally think adoption and application are factors that should go in tandem. There shouldn't be a predominant one, although I do think application is the first one you should be looking after.

A coin can't survive unless it has a purpose and proper usage. If one alt can find its own niche and prove to be demanded, it may be a successful investment for whoever invests early in it.

The thing is, it's quite hard to find an alt that has a real, devoted team because most of the times the project workings are left alone after a while (usually when they realize there isn't as much demand as they wished there would be). If I were you, I'd be looking for an alt that checks both 1A and 1B but also be focused on other aspects (is the development real or is it all fiction? where are they right now from a development perspective, compared to the roadmap they publicly showed? etc).

[mrob82]

You can't figure out which is more important because you're probably after the same mindset I have: I personally think adoption and application are factors that should go in tandem. There shouldn't be a predominant one, although I do think application is the first one you should be looking after.

I think this is where most people fail with Alts in my opinion.  Its all based on either a youtube video, over marketing on forums/social media, or just movement in the general market.  If there is not an application for the coin, then I won't touch it.  Adoption is where my mind really struggles.  There are so many levels of adoption, where to draw the line can become very murky waters.  Application is much easier for me; either it's not there, too early, in the sweet spot, or been passed by entirely.

[24Kt]

You can't figure out which is more important because you're probably after the same mindset I have: I personally think adoption and application are factors that should go in tandem. There shouldn't be a predominant one, although I do think application is the first one you should be looking after.

I think this is where most people fail with Alts in my opinion.  Its all based on either a youtube video, over marketing on forums/social media, or just movement in the general market.  If there is not an application for the coin, then I won't touch it.  Adoption is where my mind really struggles.  There are so many levels of adoption, where to draw the line can become very murky waters.  Application is much easier for me; either it's not there, too early, in the sweet spot, or been passed by entirely.

Yes, even if there is good application for the particular coin, it doesn't equate that adoption will come easy. There are so many noble projects here, yet, they failed to attract users. And there are substandard projects that can be a hit in the market. Though these 2 should go hand in hand, but you can't expect that every coin can fulfil these 2 vital aspects. And if you are an investor, you need to keep yourself up-to-date so you know where you are standing at in this investment.

[20kevin20]

Adoption is where my mind really struggles.

Well, I think a pretty significant part of this is luck to be honest. I mean, you cannot have adoption from the start which means the said coin could end up with a quite high level of adoption, could struggle with it or the devs & community could simply give up after a while - basically killing the coin.

As you said, there should be something new in the space. Something like what Mimblewimble came up with - and even mw kinda struggles.

If the Bitcoin markets seem like they're starting to mature a very little bit, altcoins are still very immature at this point. I'd bet anything that once the Bitcoin bull run begins, no alt (I'm talking about those with high trading volume and liquidity) will surpass it percent-wise. People move from trend to trend and tend to forget about the purposes of various coins.

Once a new idea pops up, it's kinda hard to be among the first to find it and, at the same time, it's quite hard to know whether people will stick to it or leave it. Luck is part of the game and you have to accept it.

I have personally tested lots of alt investments in various niches but found out that the only coins that I am interested in and using properly are privacy-oriented ones. All the other coins serving so many other purposes are useless to me, so I've backed off and focused on privacy-oriented cryptocurrencies instead. And even with these, it's hard to find ones that actually bring something new and useful in the game - and even the new stuff may sometimes come with the compromise of security, which is vital for coins that are supposedly protecting your real identity.

[Eddyc]

In the end what matters is the level of adaptation and market volume generating what we can consider a bull market. Many investors today are basing themselves on immediate opportunities but are forgetting what the project really means and what the probability of growth is. We should not confuse the cryptocurrency market with the stock market.

[RussianEnglishTranslation]

One of the biggest issues I'm having with choosing newer, or revitalized, Alts is making the decision on whether to go with a basket of Alts or pick a select few.  I have a very technical background and have traded options for 15+ years successfully.  Here is my dilemma when crossing the bridge in my mind:

1A.  Application
1B.  Adoption

Notice 1A and 1B, I can't figure out which one is more important for investment purposes.  I am looking at some of these altcoins for the long term, minimum 5 years.  For example, right now I'm looking at 2 specific altcoins, STX and VET.

I see STX having a great first step to enter the industry, they focus on security and infrastructure breaches for lack of better terminology.  Here's my problem, adoption is going to do great - my concern is that the application is either going to break down or just be horrible from the get go.  There is virtually no way to 100% safe, and to replace the internet - my mind can't go there right now.

I see VET being a great model for a business that want to tie everything together and they have a great model to target different business areas.  They want to drive all of the cores within a business together from infrastructure to the general flow of information.  I see a great application here that could really be used globally; however, unless there is a significant adoption of bitcoin and Altcoins globally - VET could potentially have a hard time.

First off, I'm not looking for the next Altcoin that's going to become the next BTC.  I'm looking to find Altcoins that are going to force a foothold in the crytpo market or be able to find a specific niche.

So should I be focusing on finding an Altcoin that firmly checks both 1A/1B?  Should 1A hold more weight than 1B, or vice versa?  Should I look for a strong check in one area and a mediocre check in another?  Or is my thinking on Altcoins completely wrong.......

My strategy is to do the following:

Invest the largest portion of my money in large cap cryptos that will likely be adopted as the future financial infrastructure for digital payments: IOTA, XRP, XLM
Invest up to 20% of my portfolio in cryptos that are considered microcaps, undervalued and under the radar that can provide an easy 10-100x, like 0xMR
Take profits and relocate funds from the microcap category to the large cap category as they 10x

For this strategy to work you have to do a lot of research to avoid exit scams and rugpulls, so far it's worked out really well for me though.

[Gozie51]

Remember you can't really rely on analysing a coin or token not in the market. And if the coin is existing in the market, you can monitor the movement and progress of the team behind it, that is part of analysing for me because it shows the growth expectation. Cartesi has an active team and that is going to be a good longtime investment.