How to choose altcoins in 2019?

Bitcoin has led the rise since the beginning, but altcoins have not kept up. After Bitcoin fell back to around $10,000, altcoins began to fall across the board. If compared with Bitcoin, most altcoins have hit a record low this year, while Bitcoin's market capitalization has continued to break through the annual high. The lament of hopelessness of recovering the investment and the voice that altcoins will return to zero are everywhere in every community. Is altcoin really doomed? Once you look at it from the perspective of time, history is just repeating itself.

Let's go back to the bull market in 2017. First, Bitcoin started to rise, from $150 to $1,200, setting a new record high, while the altcoins in March of the same period were still crying at the bottom. The situation at that time was exactly the same as today, "investing in Bitcoin is the way to go" and "all the garbage altcoins should die."

In December, Bitcoin broke through a new high of 140,000. As a result, altcoins would be embarrassed to come out if they didn't increase by 100 times. The increase of altcoins far exceeded that of Bitcoin. Referring to the current situation, you will find that it is normal for Bitcoin to suppress the altcoin market. Altcoins must have started to explode after Bitcoin started. The logic is simple. After Bitcoin has been leading the trend for a period of time, due to its large size, the increase will always come to an end, the room for increase will be limited, and it will begin to lose volatility. Hot money will naturally flow into other altcoins.

Therefore, we can draw a conclusion that good altcoins can be held on to and must be held on to. The tail end of Bitcoin’s bull market is when altcoins will explode, and we just need to wait for good news.

Investors with small capital must also try to invest in small currencies with high odds. If a big investor has 10 million in Bitcoin and you have 100,000 in Bitcoin, and BTC doubles, the big investor will earn 10 million, while you will earn 100,000. With the same increase, the big investor's earnings are 100 times yours, and this gap will gradually widen over time. For the poor, risk is the biggest opportunity. So how do you choose altcoins that can make you rich? Market value is the best screening mechanism.

Referencing the market value is the dumbest method, which has great limitations and is a compromise. Bitcoin can be held without thinking, but the water of altcoins is very deep, and it takes a lot of brainpower to screen. For those who have only a superficial understanding of blockchain, they are unable to screen out small currencies with potential. Someone previously concluded that the top 10 currencies rotate every year, and all except Bitcoin are garbage. In fact, this is not the case. Comparing the top 50 currencies over the years, you will find that many are still relatively stable. Projects with strong communities and supporting scenarios are still difficult to disappear.

Therefore, for ordinary investors, market capitalization is a very good reference indicator, because the capital market votes with its feet, and there must be a reason for the high market capitalization. Those old coins that can survive and stabilize in the Top 50 are more or less supported by capital, so you can choose large-cap altcoins or leading players in different fields.

Confirm whether the altcoin can survive the bull market

First of all, we must realize that not all coins can successfully survive the bull market. Before the bull market of altcoins, they will be fully suppressed by the Bitcoin market, and they will fall sharply. Many altcoins will be drained and die. For example, during the bull market in 2017, many coins died before the bull market. For example, many projects and exchanges are beginning to fail. For investors, it is hard to survive the bear market, but they end up betting on a coin that has gone to zero before the bull market. This miserable situation is despairing, so you must make sure that the coins you invest in can last until the bull market.

In the past few months, many exchanges have delisted some altcoins, and these coins are only listed on a few exchanges, and some are even only listed on one platform. Once they are delisted, they are basically dead. So you can refer to how many exchanges the altcoin is listed on, and how many of them are the top exchanges. In addition, check whether there are any updates on their official website, public account, Weibo, Twitter, and github. Once there is a suspension of updates for several months, you must stay away from the project.

In addition, we also need to see whether the project will progress. You can go to the official website to check the roadmap to see whether the actual progress has kept up with the expected goals of the roadmap and whether there are any new plans for the next few years.

New technology, new story

In the last round, many Bitcoin believers missed out on ETH. In their eyes, everything except Bitcoin is shit. Maybe Ethereum will return to zero in the future, but they missed the entire prosperity of Ethereum. Ethereum introduced smart contracts, which brought more possibilities and new stories to the blockchain. Although Ethereum is a good tool for IC0 to make money, who wants to miss the wealth effect brought by its technological innovation?

The explosive power brought by new technologies is extremely strong. Ethereum has directly taken the second place due to this. It also shows from the side that the technology changes very quickly. If there is no technological breakthrough, the leading projects now may be on the verge of death in a few years, because they need to leave room for new technology coins and new stories. EOS is just an evolved version of ETH, and it is obviously taking advantage of the bull market to cut leeks.

Of course, it is not easy to catch a fast car like ETH or IOTA, and there is a greater element of gambling. It is like looking for a needle in a haystack to catch the next round of killer projects. Even if you catch it, it is difficult to hold it. If you think you have caught the killer project of the next round of blockchain industry, then take a look at the answer of 11 years old on Zhihu, buy it, put it in your wallet, and then forget about it.

at last:

Altcoins are always high-risk investments. For those who are looking for stability but don't want to miss out on the benefits of blockchain, Bitcoin is the best option. Investment is risky, so be cautious when entering the market.

This article comes from "Block Wave".