Be careful of low marketcap coins

[Oshosondy]

I have been researching about how someone can lose money if investing on low marketcap coins or tokens, during the bull run I noticed the price of low marketcap coins increased but the huge bear run affected these cryptocurrencies than I expected, I saw a coins/tokens falling from a marketcap of $2 million becoming less than $16000, I just do not want to mention the name of these coins, you can use coinmarketcap or coingecko to check the coin from 2500 upward. There are over 11000 cryptocurrencies but I still do not know how coin number 2567 have a marketcap of $14.20, this means many of the altcoins have zero markercap, definitely most altcoins are worthless, some that have good marketcap of $300000 when bitcoin was at $60000 are now having marketcap of less than $10000, people that lost money during the bear run really lost indeed to low marketcap coins.

From coinmarketcap


Bitcoin is the best, it has highest marketcap, volatile but less volatile than altcoins. It is good for newbies to research about the coins they want to invest before investing, there are some coins that are listed but existing to make someone go broke, this is nothing more than scam, a scam that no one will be faulty, newbies should be wise.

Lastly is the what newbies usually think, I have seen many of them saying that I can not invest on bitcoin because bitcoin is too expensive, is bitcoin expensive? Bitcoin is not expensive, you can buy $10 worth of bitcoin, not necessary to buy 1 bitcoin. But I am always surprised to see newbies saying Bitcoin is too expensive which is the reason they will go for low marketcap coins and lose.

[jackg]

If bitcoin's too expensive for you and you want a whole of something, you might be good looking at other coins near the top like xmr, eth, ltc (and potentially doge). If it's just about units, most sites let you change them so $40 is 1mbtc instead of 0.001 btc which might look nicer to some.

Buying tiny cap coins or ones that have Eisen a lot like doge are likely going to bring you a greater loss at a better chance than bitcoin will (risk and reward aren't proportional - if they were most people would have the same amount of money).

[mabeyak]

Obviously, the problem with low market cap coins is that it makes newbies think that it's an easy 50x or 100x on their investment, which would be a relatively life changing amount. Most newbies that want to invest, don't want to get 2x or 3x their investment, since that investment is $1000 tops. Anyway, investing in any coin/token that just promises riches without any providing any actual utility is just like gambling.

[Oshosondy]

If bitcoin's too expensive for you and you want a whole of something, you might be good looking at other coins near the top like xmr, eth, ltc (and potentially doge). If it's just about units, most sites let you change them so $40 is 1mbtc instead of 0.001 btc which might look nicer to some.

Yes it will be nicer to go for bitcoin, if thinking it is too expensive when buying while 1 btc is not necessary, 1 satoshi can worth something great in the future, newbies should not focus on the whole but the worth, there is nothing the worth necessarily has to do with buy a whole 1 bitcoin because buying just $1000 is still something.

[ScamViruS]

Obviously, the problem with low market cap coins is that it makes newbies think that it's an easy 50x or 100x on their investment, which would be a relatively life changing amount. Most newbies that want to invest, don't want to get 2x or 3x their investment, since that investment is $1000 tops. Anyway, investing in any coin/token that just promises riches without any providing any actual utility is just like gambling.

They can't stay in the market for long because of this wrong thinking. I don’t blame Newbie people completely, they actually follow different people who influence them in the wrong direction. There are some people who misinterpret the crypto market to newcomers, they present the crypto market as a way to get rich quick.

As a result, newbies get busy looking for the next big pump, and as a result they buy coins / tokens of various low marketcaps and face huge losses.

[cheezcarls]

This is common for newly-introduced shitcoins that come and go. There are some Twitter and Telegram signals out there who are shilling low marketcap coins from time to time that didn't last long. Even if the team are doxxed and liquidity locked for a longer period of time, the problem with these shitcoins is that they are almost using the same concept as the other shitcoins out there. No to little uniqueness at all, or their concept isn't that impressive and catchy for the investors.

This is where I've lost $1,000 in some low cap shitcoins (only 1 of them have made me a little profit). So yeah I've stopped investing into these low cap shitcoins.

[Theones]

It is just logical that if the market capitalization is lower, the price is less stable. The volatility of the price is very high, which may result in either earning a lot or losing a lot. The smaller the capitalization of the project, the bigger the lottery of investment is.

[Smartvirus]

Well, to a lot of persons, altcoins is the way. It might seem so due to the fact that, its market is still very low and accessible compared to bitcoin which to many, its too expensive like OP said and but still, I can argue that, bitcoin has not gotten to half its potential yet becuade, the fragment of the world population that is holding bitcoin at the moment or involved in cryptocurrencies is still very small. Hence, the scarcity role is still yet to play out and as such, there are still a lot one can gain out of investing in bitcoin, even more than the altcoons. The problem often comes with one not having a plan.
I for one feel it's important to have a share in what makes others stand out and that in the case of cryptocurrencies is Bitcoin.

[passwordnow]

Not only newbies but also experienced ones are into these low market cap coins. Eventually, if there's a common guy that hypes these low cap coins, everyone is going to rush purchasing it and leaving themselves behind as those early buyers will take the profits and leaving them with no more hope. That is why some who have made profit on those keeps going with it because they know when to enter and exit but just as the usual, nothing beats investing to bitcoin.

[WePiggy]

Low market cap coins are high risk high gain assets. This area is either for seasoned traders with expendable coins to throw around, or for gambling addicts that can't control their temptations. There are actually a lot of good ones which deserve to be a lot higher but this is for the OGs and smart traders. Newbies should stay clear and stick to the top 50 coins in coingecko. The last thing you want is to see your portfolio drop 90% due to a rug pull or hack attack

[sheenshane]

It's obvious that the low market cap coins were most likely they are easy to manipulate just like pump and dump which means they are prone to this service, they are very risky to invest because it could create hype in just a matter of an hour if they like to pump this coin.

Bitcoin is the best, it has highest marketcap, volatile but less volatile than altcoins. It is good for newbies to research about the coins they want to invest before investing, there are some coins that are listed but existing to make someone go broke, this is nothing more than scam, a scam that no one will be faulty, newbies should be wise.

It's well said, even Bitcoin can be manipulated even if this is one of the highest market cap.  How much more are those altcoins that have a low market cap.
Having short research will save your money for possible losses, altcoins could potentially be a good investment but it's rare as of now and it's also good for the short term not in a long term.

[Darker45]

You better buy Bitcoin and aim for the long term. I don't disagree that Bitcoin is becoming expensive. That is true. However, despite that, at least we could still expect a lot of growth from it even with its rising price. Whereas, with an unpopular and low market cap altcoin, the possibility that it grows double or triple is dwarfed by the possibility that it would just die without proving anything. There's no need to provide proofs for this. It is a pattern already with shitcoins.  

[libert19]

Bitcoin is not expensive, you can buy $10 worth of bitcoin, not necessary to buy 1 bitcoin.

If you ever try to buy $10 worth BTC you will end up with zero, not that the case would be different with shitcoins but example is wrong.

[dansus021]

maybe thoose are shitcoin from bsc network, yesterday when safemoon and babydoge hype, but i usually buy new coin that have partnered with big project and offcourse with little research

[cryptoaddictchie]

Lastly is the what newbies usually think, I have seen many of them saying that I can not invest on bitcoin because bitcoin is too expensive, is bitcoin expensive? Bitcoin is not expensive, you can buy $10 worth of bitcoin, not necessary to buy 1 bitcoin. But I am always surprised to see newbies saying Bitcoin is too expensive which is the reason they will go for low marketcap coins and lose.

If they want to buy huge quantity then its expensive since the price is too high now. Actually it doesnt mattrr anyway. A fraction of bitcoin means you are sharing from its 21million limited supply which was decreased already due to loss accounts and forgotten keys.

The good thing here is bitcoin is the most influential coin and historically the best one out there. But we cant deny that low marketcap coins are more multiplier type than bitcoin. I myself flipping some of these lowcap coins and thats totally fine for me as lonh the project is good.

[Theones]

Many low market coins are scam but some are rather just an upcoming projects, majority of this projects will start the early cycle of their life too slow and unattractive but as time goes on things will drastically change

I don't know what you mean when you say that they will "drastically change"?
If someone earns a lot from them, then only if the development is excellent, the marketing is professional, and the idea is innovative and original. However, if something goes wrong, such a project may end up like hundreds or thousands of others, i.e. it will be forgotten and our money will be lost.

[NeuroticFish]

If bitcoin's too expensive for you and you want a whole of something, you might be good looking at other coins near the top like xmr, eth, ltc (and potentially doge). If it's just about units, most sites let you change them so $40 is 1mbtc instead of 0.001 btc which might look nicer to some.

This is a pretty risky advice. I started by journey with altcoins exactly because I thought that Bitcoin is expensive. It was a mistake.
Although altcoins do have good moments now and then, they are less predictable than bitcoin. Even the big, established ones.
So my advice(*) is to buy bitcoin, even if it's 0.001 and afterwards, if you really want to, buy some alts too, just like you'd buy lottery tickets. Some may bring (sooner or later) jackpot, but most won't.

(*) For everybody, I said "my advice is to buy" and this needs clearing up: don't take my advice just like that, it's not a financial advice. Invest your money as you think it's better, don't just follow what random people say on the internet.

[Oshosondy]

Bitcoin is not expensive, you can buy $10 worth of bitcoin, not necessary to buy 1 bitcoin.

If you ever try to buy $10 worth BTC you will end up with zero, not that the case would be different with shitcoins but example is wrong.

This post is not necessary, I used it as an example to explain that some newbies always think bitcoin is expensive, that it is not expensive, that only $10 worth of bitcoin can be bought. But I still disagree with you, even if bitcoin becomes $1000, so far you are holding the $10, the amount will only be worthless just like holding shitcoins, but did you think bitcoin will reduce and never reach all-time-high? This is not possible, there is more chance that the $10 bitcoin will only worth $20 or more one day when bitcoin price doubles or increase more than double. You can say it is not possible for shitcoins, but possible if bitcoin is the coin invested.

[BlackPinker]

Yes, we have to be very careful about low market value tokens.

But sometimes this can become an attractive means: our tokens have great potential, and the current market value is very low. If you buy our tokens, there will be a big increase in the near future.

[CryptopreneurBrainboss]

there are some coins that are listed but existing to make someone go broke, this is nothing more than scam, a scam that no one will be faulty, newbies should be wise.

The saying 'Alts were only created to steal your bitcoin' is becoming clearer and clearer. No matter how an alt increase in price, over time it'll lose value when compared to Bitcoin. I understand this first hand this year as I invested over 0.5 BTC in altcoin that if I was just to hold that Bitcoin I would had been better off then where I'm currently am. When looking at the dollar value of my investment, I did increase my initial capital but adding both the capital and profit combined still didn't reach my initial Bitcoin I had.

Alts be it high market capitalization or low market capitalization, aren't the best bet against the financial system, Bitcoin always is. Don't get carried by all the hype surrounding them. If you're picking interested in them just do it as a part of having fun with the market while you concentrate on accumulating Bitcoin. We'll always have as much altcoins as possible, that you missed cashing out on this particular trends, that doesn't mean you won't be able to short term profit from future ones.

Don't rush into following the crowd by buying worthless shit be it low or high market coins, they'll all end up the same. They'll all lose value in Satoshi, lets consider Ethereum as an example, irrespective of all the gains Ethereum has secured in the market, it's constantly losing value in Satoshi talk more if low market capitalization coins. Although they're they give the best ROI, still it's risky replacing your Bitcoin with them.