The crypto market is expanding. Every cycle brings millions of users which keeps expanding this ecosystem. That is why I always emphasize never investing all of your money in the crypto market.
This is a market that is expanding every year but the cash flow is not sufficient to handle this rapid growth of users. You may have noticed that many new crypto coins are being introduced on different exchanges and every day new coins are launched.
If I talk only about Binance around 10–15 new coins are launched every single month. You can check this on Binance Launchpool and you will realize how many new coins keep coming.
So the question is that when new coins continue to launch and attract huge volumes do you think blue chip or strong older coins can still perform well or deliver good returns during this bull run?
I don’t think so because this increase in volume in new coins is one of the main reasons why capital is being pulled out of strong older coins.
Therefore in every cycle you will notice many new users joining the crypto market. You will see many new coins with unique or unusual names that sometimes seem like a joke.
These coins often attract good trading volume and users show strong interest in them. Meanwhile slower moving coins or older project coins may never pump again leaving investors stuck in their positions.
For this reason it is better to invest in strong new coin projects and after taking a good profit, exit immediately. It is important to diversify your portfolio by investing not only in crypto but also in stocks or other markets that have strong growth potential.
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IMAGE TAKEN FROM PEAKDAI
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