The benefits of investing in altcoins

[passwordnow]

But don't overdo it. People might think that diversifying a lot will save their portfolios. It's also a matter of what kind of altcoins are you going to choose. So, therefore as you diversify, make sure that you choose the altcoins that you're going to diversify with because if not, you're doing the wrong thing about it. While it can truly cover the losses that you'll get from the other altcoins, but sometimes it will also get you the most losses if not wise in choices.

You are not diversifying anything by investing in shitcoins. I have explained it in my previous post.

Diversifying from human feces to cat feces and dog feces is not really a diversification away from feces, is it? Instead of 1 type of poop all you have done is become a proud owner of 3 types of poop.

I've got bad investments with shitcoins, memes and others. And that's why I am not reinvesting or diversifying to them anymore. But for the first timers in the market or those who are new, they might think that they're diversifying it as to common knowledge of what they do. There are some good altcoins that have been there for so long and have brought me some nice profits. I haven't sold them and will still hold them longer which is still part of the diversification that I did. While I agree with you that it's not called diversification if it's done with those types of altcoins, it's only throwing your money away by doing that.

[WhaleProInvestor]

Yes, these are well-known facts. So what's the point of this post? By the way, almost nothing has been written about the risks.

[Slow death]

Yes, these are well-known facts. So what's the point of this post? By the way, almost nothing has been written about the risks.

He probably didn't talk about the risks because he knows that the risks (the negative side of altcoins) outweigh the benefits (the good side he mentioned). I believe that everyone in the cryptocurrency market has probably bought a token that later fell significantly and was subsequently disappointed. One of the things I always remind people about is the idea of ​​long-term holding of altcoins not being a 100% guaranteed profit. I always give the example of what happened four years ago when altcoins like Litecoin reached over $400



but after four years, It can't get past $160, and I highly doubt that LTC will ever reach $413 again. So, everyone who bought Litecoin at $300 is at a loss. While in the case of Bitcoin, those who bought at $69,000 in 2021 are at a profit today. I have no doubt that the best long-term investment is Bitcoin.

[gunhell16]

When it comes to old altcoins that have already proven themselves in this cryptocurrency business industry, I think we can truly get benefits from them. I can say that for long-term holdings in assets like Ethereum, ADA, XRP, LTC, DAO, BNB, and other crypto assets that are at least in the top 20,
We can profit from them.

But even so, we still need to be careful because the risk in altcoins is too high, and I can't deny that. This is especially true these days
When scammers often use altcoins—you know what I mean.

[justdimin]

The biggest advantage alternative currencies have is the potential for higher profit and also networks which are faster and cheaper than Bitcoin.
Though, how the market stands today it is pretty much a hard task to be able to select a legitimate alternative currency before it explodes in price and market capitalization.

One could end up scammed pretty easily, so it is better just to have some of one's money staked in Bitcoin, instead of doing the same with shitcoins.

One of hundred project will succeed so how do you distinguish between those altcoins? Did you have any experience gaining good profits by joining in any project early or is this just your theory? People have spent months and months in research and still have ended up in loses after this new project fails. It takes a lot of patience and ability to make our own research before joining any project in it's early stage.

Altcoins had this hyped seasons. For some time, NFT's and metaverse was hyped and we saw a tons of project coming out in that season but how many of those really survived? These projects are seasonal. Once the hype is gone, we might as well see our money wipe out.

[beveryu778]

Altcoins are cryptocurrency other than bitcoin, or the cryptocurrency created after bitcoin and as much as they risky investment, they are not also without some benefits.
The creation of altcoins gives room for innovation:Altcoins are innovative cryptocurrency because different altcoin with their different functions and the creators are always looking for a way of solving problems by creating coins with clear use cases and investing in them can be profitable sometimes.

Altcoins gives room for diversification: In cryptocurrency investment, diversification is very important as it enables you to spread your risk among various cryptocurrency ,should in case any one did not do well, you can cover up with other ones.

There are many benefits to investing in Altcoins but the risks are high. It is not as easy as you think. Altcoins are constantly coming into the market with new concepts that get a good hype in the market for just a few days if they are listed on a good exchange. I have invested in Alt many times with the expectation that I can get a lot of profit by investing in Alt but even if I get some profit only a few times, most of the time I have to wait a long time to buy and sell and then wait a long time to sell at a loss. So I do not find any high benefit of Alt

[markm]

 One of the things I always remind people about is the idea of ​​long-term holding of altcoins not being a 100% guaranteed profit. I always give the example of what happened four years ago when altcoins like Litecoin reached over $400

[snip]

but after four years, It can't get past $160, and I highly doubt that LTC will ever reach $413 again. So, everyone who bought Litecoin at $300 is at a loss. While in the case of Bitcoin, those who bought at $69,000 in 2021 are at a profit today. I have no doubt that the best long-term investment is Bitcoin.

That kind of thing is a big reason to trade, in a market-making way, rather than a simple "buy and HODL" approach.

That way when Litecoin chewed its way up through a huge swathe of your ascending column of sell offers to reach $413, providing you with plenty of bitcoin (assuming you used a sensible other side of the pair) to build upward your column of buy offers below, and then proceeded to chew its way back downward through a huge swathe of your column of buy-offers, how much would you care whether it ever reaches $413 again given that by the time it had chewed through your buy offers all the way down (to gosh, how low did it actually go?) it had filled your coffers with oodles more Litecoin, building your ascending column of sell offers probably much higher than $413 to make sure if it ever gets there again or even goes higher next time, your offers are what it has to chew through to get there?


-MarkM-

[savetheFORUM]

Well I think you did say it there it is for diversification. I do not think it is easy for us to make big gains investing only in Bitcoin.
There is some weeks when Bitcoin will be down but some alt coins will be up. But for long term profit we should invest most of our capital in Bitcoin. The alt coins can be used to make profit but most of it will come from Bitcoin I think.

Bitcoins will always dominate the markets so we should always keep a major chunk of our capital in bitcoins as they are for sure going to show positive outcomes but also trying our luck and faith in few other altcoins won't hurt. Altcoins have a season, when the cycle starts mostly all potential altcoins will start showing promising returns so at least for that timeframe, we should hold a bunch of altcoins in our portfolio which can give us good returns for a shorter time. I always consider few altcoins as blue chip crypto and consider investing in those by comparing risk to reward ratio.

Few altcoins have community-driven growth when majority of people start buying those. This will make them rally at least for a shorted time where we can make easy money real quick. Altcoins do foster blockchain innovations as they always keep on bringing innovation.

[Asiska02]

Altcoins gives room for diversification: In cryptocurrency investment, diversification is very important as it enables you to spread your risk among various cryptocurrency ,should in case any one did not do well, you can cover up with other ones.

Diversification in altcoins can be very challenging because of the wrong choice of token to invest into. Generally, altcoins are termed as risky investment, so diversifying your investment into more risky investable assets (altcoins) increases the overall risk and you’ll risk losing your money in not careful. The impression that you can invest in one altcoin token and when it doesn’t go well, you get to collect profit from another to cover up for it are all fairy tales and the tendency of it happens is very minimal. Getting to know about an altcoin before investing into it is very important, this will reduce the risk of likelihood of losing it all when it gets bad.

[M47AK16]

Bitcoin is less volatile and should be where you put your money at  when you're done with your investments with stock.

When it comes about volatility or risk, in fact a lot of alts are high of it too. Stocks are still stocks and cryptos are still cryptos, so it is still better to invest on both if we are into diversifying. BTC is more volatile but this is more recommended especially for the beginners due to its old age and it is also truly decentralized.

When it comes to old altcoins that have already proven themselves in this cryptocurrency business industry, I think we can truly get benefits from them. I can say that for long-term holdings in assets like Ethereum, ADA, XRP, LTC, DAO, BNB, and other crypto assets that are at least in the top 20,
We can profit from them.

But even for a new altcoin, the benefit is also there, it is just that the risk can be a bit high especially if they have less backings. The only thing is that we can earn a quick and huge profits on them if we are successful. Old alts that you mentioned there has a reduced risk but with a cost of waiting a bit longer for maybe a normal profit only. Even though old alts are more trusted, scammers usually focus on newer alts and tokens because they are aware now that people dig on them the most.

[WatChe]

He probably didn't talk about the risks because he knows that the risks (the negative side of altcoins) outweigh the benefits (the good side he mentioned). I believe that everyone in the cryptocurrency market has probably bought a token that later fell significantly and was subsequently disappointed. One of the things I always remind people about is the idea of ​​long-term holding of altcoins not being a 100% guaranteed profit. I always give the example of what happened four years ago when altcoins like Litecoin reached over $400



but after four years, It can't get past $160, and I highly doubt that LTC will ever reach $413 again. So, everyone who bought Litecoin at $300 is at a loss. While in the case of Bitcoin, those who bought at $69,000 in 2021 are at a profit today. I have no doubt that the best long-term investment is Bitcoin.

If you are looking for long term then the only best option is Bitcoin. Alts must be for short duration and one must quit as soon as he start getting adequate profit over his investment. The reason why Bitcoin is recommended for long term is it's historical price pattern, we can clearly see that Bitcoin has a price cycle that repeat itself after every four years. That means there is enormous increase in Bitcoin price after every four to five years, you have quoted an example of that. I remember Litecoin was once a top Alt but now it's gone down in ranking and we are not sure whether it will regain it's previous value or not.   

[stepwilli]

I agree with your one point about diversification. Altcoins are really an important tool for diversification as they will make us divide our capital into a bunch of coins. Even if one of those gets dumped, we can still recover from the others which can at least keep our investments safe. Early stage altcoin investing can give us better profits but that will also come with higher risks as not every altcoin is going to boom in future. There will be some who might end up being worthless or rugged pulled by a few whales just to make quick bucks.

It is always good to invest in niche driven altcoins like DeFi, Gaming or AI. Other altcoins like meme coins will have a shorted life of growth and will end up being dumped for the rest of their lives.

[Akbarkoe]

Not a few also the creator of their altcoin to deceive, with innovation narratives, the importance for you to talk to Altcoin investment must be with a standard of knowledge that is to understand the project and who is behind the project because it will be the most source to ensure an Altcoin project has a developer who really makes an innovation needed by the community, and not all Altcoin is valuable, many garbage coins here.

[lixer]

Altcoins are easy to create. Anyone can replicate the blockchain to create their own altcoin and this is as dangerous as it seems to read. There are hundreds and thousands of altcoins out there and it is really quite difficult to find worthy ones. We do have few top altcoins which have always been people's favourite and we would prefer sticking to them but there also are some innovative new altcoins which show higher profit potentials.

Altcoin investments can be riskier specifically with newly created altcoins but they also have high reward ratio. If the altcoin shows promising returns, people will start pouring their money which will over hype the project and once the hype ends, it will start crashing bad.

[uneng]

Well, thinking about diversification, it's not a big deal in crypto market, because cryptocurrencies in general walk side by side, what means Bitcoin is the decisive factor in this market. When Bitcoin pumps, the market as a whole pumps as well, and when BTC dumps, the whole market crashes too. Diversification is a must in investments, but in order to diversify, you have to invest in another categories of assets, which go beyond crypto market.

The only "benefit" in altcoins I can see right now is the possibility of profiting very expressive margins, like 50%, 100% or even more in a relatively short period of time. Something which isn't possible in most markets. However, keep in mind it's just a possibility, and that there are many risks involved.

[markm]

Well, thinking about diversification, it's not a big deal in crypto market, because cryptocurrencies in general walk side by side, what means Bitcoin is the decisive factor in this market. When Bitcoin pumps, the market as a whole pumps as well, and when BTC dumps, the whole market crashes too. Diversification is a must in investments, but in order to diversify, you have to invest in another categories of assets, which go beyond crypto market.

The only "benefit" in altcoins I can see right now is the possibility of profiting very expressive margins, like 50%, 100% or even more in a relatively short period of time. Something which isn't possible in most markets. However, keep in mind it's just a possibility, and that there are many risks involved.

It seems feasible that might be simply an artifact of the immaturity of the markets / field; possibly the mentioned "most markets" simply happen to have matured more, possibly primarily simply due to having been around longer thus had more actual time and associated experience to do so...


-MarkM-

EDIT: It might also be that in effect gambling is perpetual or even open-eyed deliberate immaturity in effect, thus also that immature markets/fields are gambling, possibly exactly to the degree they remain immature...

[allthebitandbobs]

Well, thinking about diversification, it's not a big deal in crypto market, because cryptocurrencies in general walk side by side, what means Bitcoin is the decisive factor in this market. When Bitcoin pumps, the market as a whole pumps as well, and when BTC dumps, the whole market crashes too. Diversification is a must in investments, but in order to diversify, you have to invest in another categories of assets, which go beyond crypto market.

The only "benefit" in altcoins I can see right now is the possibility of profiting very expressive margins, like 50%, 100% or even more in a relatively short period of time. Something which isn't possible in most markets. However, keep in mind it's just a possibility, and that there are many risks involved.

I agree with this. Diversification does not only mean we need to have a bunch of other cryptos in our portfolio but should think about investing a portion elsewhere like in stocks or gold or maybe even real estate. Crypto as a whole do have potential but we should also be prepared for worst times just in case something bad happens. Bitcoins are the back-bone and (touch-wood) if anything bad goes with bitcoins will be the end of most altcoins and the remaining will struggle so badly that recovering will be quite difficult.

All our money being stuck in crypto that time might feel like a nightmare so why to take changes? Instead I would prefer investing a minor portion into stocks and forex as that is what I consider as my second and third most favourable markets.

[M47AK16]

If you are looking for long term then the only best option is Bitcoin. Alts must be for short duration and one must quit as soon as he start getting adequate profit over his investment. The reason why Bitcoin is recommended for long term is it's historical price pattern, we can clearly see that Bitcoin has a price cycle that repeat itself after every four years. That means there is enormous increase in Bitcoin price after every four to five years, you have quoted an example of that. I remember Litecoin was once a top Alt but now it's gone down in ranking and we are not sure whether it will regain it's previous value or not.   

Litecoin was dominated long back by other altcoins but still now has managed to be among top 10 coins. I would not agree that bitcoins should be our only choice of investment. Even altcoins have high yielding potential and not every altcoin is going to run away with our money.

Some altcoins are really promising like ethereum. I am very much in favour of ethereum as is is not only my second favourite coin but also second most traded crypto currency of all times. I would trust bitcoins no doubt in that but also trusting few other altcoins is not really a bad decision as long as you are able to identify genuine altcoins instead of looking for high-yield potential newly created alts.

[TastyChillySauce00]

Altcoins are cryptocurrency other than bitcoin, or the cryptocurrency created after bitcoin and as much as they risky investment, they are not also without some benefits.
The creation of altcoins gives room for innovation:Altcoins are innovative cryptocurrency because different altcoin with their different functions and the creators are always looking for a way of solving problems by creating coins with clear use cases and investing in them can be profitable sometimes.

Maybe the innovation part is true to some extent, but most of altcoin doesn't even needed in the first place. Some project created token or altcoin just because they can extract money from the market and that's all about it.
Investing in altcoin is just flipping money and nothing more. Maybe you'd see one or two altcoin that can survive multiple cycle but majority of them just went down 90% after a while.

Never get emotionally invested to an altcoin is my advice, people think altcoin could just go up forever, that couldn't be more wrong.

[Stormisover]

Despite those beautiful lines about the benefits of investing in altcoins, you have left out the most important advise you can give to anyone who wants to invest in altcoins which is to invest only what they can afford to lose. Most of the altcoins are not worth investing and the rate at which altcoins fail leaves nothing to desire. Altcoins can give big profits or big loss, hence it should never been followed with greed, just ensure you follow the rules of not getting overinvested in altcoins.  

There is so much vulnerability of not getting overinvested in altcoins for those that give prioritize attention to them because of hypes and most times people are easily carried away by hearing what they wanted to hear, it has not really been rosery for those that I know that are in to it, it is only but a few that I know have profited which I know too well they might not come openly to talk about their loses. Do you think is easy to invest only what they can afford to lose since it is quick profit minded?