Today I'm trying to figure out how the altcoins behave when the bigs (ETH and BTC) have a sudden rise or dip.
This morning the quick rise on ETH seems to have hurted almost all altcoins. Though, BTC dropped a little as well, and I know that when BTC drops, a sort of "domino effect" makes altcoins go down too, because of a loss of faith in the whole crypto world.
I admit I considered, given the last 2 weeks performances, selling my altcoins to buy some more ETH, but at the end I'm holding on because I invested in some project I strongly believe in for the long term, and I decided to shut down the trader devilish voice inside of me.
Maybe many people had my same thought and weaker hands?
I'd like some more technical opinions from people who understand the market more than I do.
I'm watching this as well. I think people move to lower cost high volatility coins in between the major pumps Ethereum does. If Ethereuem moves x percent they quickly move out of the tertiary AltCoins and into Ethereum. Once Ethereum stabilizes they diversify their portfolio.
This is a strong strategy for the very reason we all believe the entire market is undervalued. For instance if Siacoin is much more likely to see a 200% rise in the course of a week than Ethereum will so it would be a good strategy to keep a few thousand coins there.
What are your thoughts? Any AltCoins you are really fond of?
I agree, look at the overall market cap. Everything is down today, but money isn't leaving cryptocurrency. I would only really worry if the market cap began to fall drastically. The altcoins will come back up when ETH stabilizes.
Pretty much, one of my coins was down %50 and I was out of town with no trading access. It is now almost back to the level it was at. Wish I could have bought some more when it dropped to that floor.
This.
Altcoins go up and down, but if you zoom the charts out you can notice that they follow the global crypto market cap trend.
The only thing that bothers me is how ETH is performing well comparing to them, making me regret diversifying in such a bullish moment.
True, easy to look back and know what we should have done....rest assured, probably a pullback coming(entry point) before it goes higher again.
This is exactly what I was thinking. Lots of day traders are in the game, especially in altcoins.
I'm not trading because I feel it's pretty hard to state whether there'll be a pump or a dump tomorrow or in the next days. Crypto market is still very young and irrational to be understood, and given the relatively low market cap most altcoins hold, few hands can heavily manipulate the whole scenario.
I'm currently strongly investing in all alternative platforms to Ethereum (Stratis, Lisk are an example), as I believe that when ETH will go mainstream, attention will start to pour on them too, and money will follow.
A minor part of my money stays on GNT, SC and ICN too, projects which I strongly believe in the long term will grow and get the attention they deserve.
I'm thinking about getting into a couple of other ones too, I like to diversify as much as I can!
Stratis I think has huge potential. They have huge B2B possibilities because they are built on .NET. The developers keep mentioning that Microsoft is watching and talking with them. I think if Microsoft finally bites the bullet and completely supports STRAT has a huge growth potential. I get the application of the tech and that is why I invest.
Lisk I am watching because they have a lot of people talking about them. I am still lost on their real world application.
I looks like DASH might become the next secondary AltCoin once Ethereum finally hits the mainstream point and loses some volatility, but who knows. I was reading something about how the smart contracts could end up pushing Ethereum up in price drastically because of a lack of supply once everything is tied up in the ERC20 tokens.
Great article!
Lets talk! good inquiries. Peace