There is a dark day approaching for many investors in the cryptocurrency market and they aren’t ready for it. The day when they realize the mistakes that they have made in this market. Mistakes that were the difference between them being successful, and them losing everything.
Investors come into the crypto market often only ever knowing about Bitcoin. As time passes they see other people who have been in crypto for years and have gotten rich. These newcomers feel that they missed their chance with Bitcoin and Ethereum, and they begin looking further into the altcoin forest looking for opportunities that will make them rich.
They have watched their favorite crypto YouTube influencer, and maybe even briefly studied the market. Concluding that they know that the crypto market always moves in 4 cycles. That new all-time highs are not only a certainty but will be glorious. That they only need to spend a few hundred or thousands of dollars, and it will bring them back life-changing gains. They look at the market and see that everything seems to move with Bitcoin and Ethereum in unison, like a magnet. When Bitcoin goes up, altcoins follow. Appreciating in value without any real merit or use-case. Something evident with the popularity of meme tokens.
These newcomers don’t know the most important rule in crypto. Nothing in this market is guaranteed. Prices could go to zero tomorrow. A fool is quickly separated from their money.
The harsh reality is that nearly 99.99% of tokens will never reach a new ATH when in comparison to Bitcoin or Ethereum. Over time they slowly fade away and trend to zero.
One of the most respected members of Crypto Twitter, Cobie, shares this opinion. Stating that he believes only about 10 tokens that currently exist will ever reach a new ATH vs Bitcoin or Ethereum.
The truth is that this is nothing new. New crypto projects are born every cycle that brings extreme hype to the market. But quietly the older projects fade away, never reaching a new all-time high. Some of the biggest projects of the last cycle that didn’t even set a new all-time high were XRP, Litecoin, Dash, Zcash, Bitcoin, and several others. It begins to look even worse when compared to BTC or ETH.
Each cycle there will always be a new batch of projects that are created to make people money, but we never see the older projects outside of Bitcoin and ETH continue to soar. This is the exact reason why OGs in the cryptocurrency market will often say that everything trends to zero over time when compared to Bitcoin. While you could make quick gains with altcoins. Few people time it right and end up holding onto their bags too long, watching the value of their portfolio plummet.
People often forget that the most important thing isn’t making paper gains. The most important thing is holding onto them. That is what Bitcoin and Ethereum have been proven successful at being able to do.
This is exactly why I prefer to stick mostly to crypto blue chips. At the moment the only two projects that I would consider blue chips are Bitcoin and Ethereum. They may be slower movers, and I might even be sacrificing short-term gains. However, over the long haul, my portfolio has been much better for it. Many people forget just how risky the cryptocurrency market is. Even “safe” projects such as BTC and ETH. By investing in lower-cap altcoins you are amplifying that risk by 100x.
How about you? What coins do you keep in your crypto portfolio?
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