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://bitcointalk.org/index.php?topic=2600365.0


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.

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

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.

thanks for nice advice, cause i ussualy buy coin with cheap price and hope it will grow. now i want to try with buy coin that likely have great future. or i can go to cmc and randomly pick top 100 there 

this is only my opinion and one must always form their own but I would suggest finding real projects and IF they are under value then well...

https://bitcointalk.org/index.php?topic=2479595.140

I was talking with few friends/family of mine, and they were like: " ...Ohh yea im holding 100k of Siacoin, and im waiting to get to $1 and sell it..." Made me laugh big time  
The buy cheap coins mindset that i've seen from people, are people who have been involved in any way with stocks or other markets, and just now get in to crypto, because of the hype all the media outlets have been pumping about bitcoin, and think the same rules apply here as well.

P.S Great post. (Y)

Thanks, yes it is quite surprising just how many persons employ this reasoning.

I really feel sorry for those that are moving their btc into coins that are at a low price without having done any research.
Why would anybody buy something they know very little about?
Hype, viral trends, they are pretty scary things that moves masses to make stupid decisions.

I will add one more bit of advice.  It seems obvious that it is a bad investment choice but I have seen this popping up quite a bit amongst new investors.

It is NOT a good idea to just pick 10 random coins in the top 100 on coinmarketcap and invest in them.
Actually, this isn't investing at all, it is gambling really.
Especially in the top 100 on cmc.  That first page can be really misleading for those who have not studied about crypto, startups, and market economics.
When you look at something like, say, Trumpcoin, you can safely say that it is a joke or shitcoin, have a laugh, and move on.
But who on earth would put thousands of dollars into it?
There a LOT of coins that have basically the exact same function of shitcoins like trumpcoin.
It might look legitimate cause it's got the fancy tag of being #30 or #66 on coinmarketcap! or they might claim, "We will disrupt the banks!" or whatever nonsense but the tech behind it just doesn't offer anything or doesn't even exist yet.

These types of coins have no future, especially in 2018 no matter how much it is "valued" by coinmarketcap.

what nobody cares about noobs ... that's terrible.

Too many of them. Also you know if years ago noobs mostly were coming here to try to understand and to learn (like I did), now mostly coming in panic that the train is leaving and we must join at once. Except that it's not true, it's also it also enriches the scum. And final thing - let them learn by their own mistakes.
But personally I like your post - up.