Are Altcoins a Safe Investment?
Recently, I got into several conversations and realized that many put a lot of faith into altcoins when there's ample evidence that points in the other direction.
Take for example Cosmos or ATOM. One of the most promising ecosystems in the last crypto cycle. Flagship projects include Osmosis or Kujira. Most recently, Kujira imploded as an ecosystem when it was uncovered that the team used users money to leverage liquidity on their apps.
But this post is not about Kujira. It's about Cosmos as an ecosystem. One of my recommendations is to invest in thriving ecosystems (buy the casino, don't play its games). Back in 2021, Cosmos looked like a great bet as an alternative L1 to Ethereum.
However, three years later, ATOM's price is lower today than when Bitcoin bottomed at 15k in 2022! Its bear market never ended, it got WORSE! Just look at the chart.
How many altcoins experienced the same situation lately? It's a long list.
Altcoins like Solana, that did a 25x since its $8 low in 2022, are an exception! And these exceptions rarely repeat for the same altcoin. In light of that, betting on alts is a bet with the odds against you, in most cases.
If you're lucky to buy into an altcoin that does a 10x or more, then consider yourself lucky and secure those profits by buying Bitcoin. Bitcoin has been the ONLY coin to make higher highs for over 15 years. To date, both Ethereum and Solana failed to make a higher high or ATH in this cycle, but Bitcoin did! Perhaps a warning to be extra careful.
I've been in crypto for over 10 years, and every year I am more convinced that Bitcoin is the only good bet long term. If you're here for quick gains, no harm in trying your luck with altcoins, but if you plan to stick around for more than a few years, make Bitcoin your end goal.
Let me know what you think and ping me if you have any questions.
Duo
Take for example Cosmos or ATOM. One of the most promising ecosystems in the last crypto cycle. Flagship projects include Osmosis or Kujira. Most recently, Kujira imploded as an ecosystem when it was uncovered that the team used users money to leverage liquidity on their apps.
But this post is not about Kujira. It's about Cosmos as an ecosystem. One of my recommendations is to invest in thriving ecosystems (buy the casino, don't play its games). Back in 2021, Cosmos looked like a great bet as an alternative L1 to Ethereum.
However, three years later, ATOM's price is lower today than when Bitcoin bottomed at 15k in 2022! Its bear market never ended, it got WORSE! Just look at the chart.
How many altcoins experienced the same situation lately? It's a long list.
Altcoins like Solana, that did a 25x since its $8 low in 2022, are an exception! And these exceptions rarely repeat for the same altcoin. In light of that, betting on alts is a bet with the odds against you, in most cases.
If you're lucky to buy into an altcoin that does a 10x or more, then consider yourself lucky and secure those profits by buying Bitcoin. Bitcoin has been the ONLY coin to make higher highs for over 15 years. To date, both Ethereum and Solana failed to make a higher high or ATH in this cycle, but Bitcoin did! Perhaps a warning to be extra careful.
I've been in crypto for over 10 years, and every year I am more convinced that Bitcoin is the only good bet long term. If you're here for quick gains, no harm in trying your luck with altcoins, but if you plan to stick around for more than a few years, make Bitcoin your end goal.
Let me know what you think and ping me if you have any questions.
Duo
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