Ah, bear markets. The time when the people who urged you to take risks at the market’s peak tell you to play it safe at the market’s bottom.
Some think Ethereum, BNB, XRP, and other big cryptos are safe.
Says who?
Ethereum’s creators, developers, and community think it’s so bad, they’re replacing it with a new version.
With all the rumors and shadiness surrounding Binance and its smart chain, BNB seems a little dodgier than you might have thought last year.
XRP does the same thing every other cryptocurrency does-it’s the “banker’s coin” that banks still don’t use.
They may all do amazing things in the future, but that doesn’t make them safe.
History says . . .
When you mix the words “safe” with “altcoins,” you’re already playing with fire. “Safe altcoin” is an oxymoron. With altcoins, you’re gambling with every single one of them.
A worthwhile gamble, for sure. Something to embrace with eyes wide open-perhaps with some input from my list of Top 100 Altcoins-Which Will Survive Through the Bull Market.
My list tells you what I think of each altcoin, along with a survivability score of their chances to stay on that list. Only 11 altcoins got a top score of 5/5.
That may seem harsh but once you look at history, you can see the big altcoins have a tough go:
- Only 6 altcoins from 2013’s top 100 stayed in the top 100 through January 2018, the peak of the previous crypto bull market.
- From December 2017 to December 2021, 26 altcoins stayed in the top 100-but 21 slid down the list and only 14 ever made it back to 2017 levels.
- Even ETH is down against bitcoin since peaking in June 2017.
Same risk, more reward
Until you can tell me which altcoins will succeed or fail, go with the small ones, not the big ones. They offer more upside for the same amount of risk (100% loss).
In my Crypto is Easy newsletter, I talk about altcoins and sometimes publish reports on “hidden gems-small, legit projects that can give you outsized gains.
They’re no safer than any of the other altcoins, but they share a builders’ mentality, strong fundamentals, and sometimes great staking (passive income) opportunities. With my reports, you’ll know the project’s history, goals, and team, as well as an honest and unbiased price potential, a list of things that could go wrong, and information about buying and staking the token.
Mark, you’re saying I shouldn’t hold big cryptos?
No. There’s no substitute for network effects, liquidity, development, utility, and other features you only get with the big altcoins.
I’m saying that altcoins aren’t safer just because they’re big.
You can’t expect to get better results from small altcoins simply because they’re small, but when you do get results, you get better results than the big ones.
Only bitcoin is safe. It’s the only crypto that’s part of the financial plan I mention in my portfolio strategy.
Every altcoin is speculative, even Ethereum. Small altcoins give you the most upside when you win.
Plan accordingly.
This post is also available as an NFT on Mirror.
Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Superpeer.