This Is What Brand New Crypto Investors Are Saying? Do You Agree?
After talking to about 25 people who have invested in crypto in the last 20 days, they all say one thing. They don't want to buy Bitcoin because they want to own a whole token. They don't want to buy a .001 Bitcoin for $140 bucks.
They would rather buy Ripple, Stellar or ADA. They want to buy big supply coins that are very inexpensive. Things that were or are under a dollar.
(www.giphy.com)
To them it makes them feel good having 1,500 Lumens as opposed to a half of an Ether or .025 Bitcoin. It's understandable. I like looking at my Doge total, but I only have a $100 bucks in Doge, but it does look nice.
When I talk to a lot of new to crypto people they feel like they've already missed the boat on Bitcoin and Ether to an extent. They don't look at Dash because it is over a grand.
They ask me about the ones mentioned above and IOTA, NEM and VERGE. They want to get a lot of a coin, hold it and get rich. LOL, don't we all.
Here is what I tell them
1. Invest in a crypto because you believe the technology will fulfill a big need in the market. I use Amazon as an example. I say, "What coin will be like Amazon was when they started out? First they just sold book on the Internet when it was just starting out. Then they started to fill a bigger hole in the market. People wanted to buy more than just books on the Internet. Now Amazon sells damn near everything. You want to find that coin that is building a platform like Amazon. Something that can morph and grow into the future. It takes research, but there are some coins that will evolve from their first white paper and become crypto giants because the fill needs in the marketplace."
2. The second is basic math, but they need to be reminded. I tell them...
If you buy $100 in Bitcoin or .00076 when it is priced at $15,000 and it goes up to $150,000, your original investment of $100 is now $1,000.
If you buy $100 Lumens or 300 of them when it is priced at $.33 cents and it goes up to $3.33 then your original investment of $100 is now $1,000.
I remind them it doesn't matter how much it costs per coin, it matters how much do you think it can grow. If you feel Bitcoin could be at $50,000 next New Years and you think Ethereum will be at $10,000 then it would be wise to buy Ethereum because it will go up over 10x while Bitcoin is less than 3x.
3. The last is just a warning. Don't invest money you don't have, don't expect to get rich overnight and you have to do the research so you know how to keep your coins safe.
Right now there are so many new people coming in, and all of them want a piece of the pie. The ones I have talked to are buying the lower priced coins because they feel they've missed the boat.
I wonder if this is partly why we are seeing so many small-caps grow so quickly right now? I also wonder if that buying habit will hinder Bitcoin in some way. We've seen Bitcoin's slip. It is slow and costs a lot. People are not going to put up with that if there are faster and cheaper options. Back to the Amazon example, they won out because they had the fastest shipping at the lowest prices.
This is a very interesting time in crypto and we're still so freaking young. I'm excited to see how it all plays out, and for now... I'm buying up more small caps. I'm glad I got Ripple a couple of weeks ago. But I'm not a financial advisor, so do your research. I'm just talking about my observations.
What coins are the new people you are talking to interested in? Let me know in the comments. I'm very curious.
Thanks for reading.
I agree with big need in the market
Yeah, that one is important. Thanks for reading.
One huge mistake new investors make (I made it too) is looking at price instead of market cap. The greatest opportunity for growth generally comes from low market cap coins since it doesn't take much for them to double and triple. Zcash is a great example. Zcash is $467 a coin but only has a $1.55B market cap. If it were able to get to Litecoin's market cap, each coin would be worth over $3500. By contrast, Tron is trading around 3¢. If it got to LTC's market cap, it would be worth about 17¢. You'd actually get a better return with Zcash, just with a lot fewer tokens in hand.
The great thing about crypto is it gives a lot of inexperienced investors a chance to learn about markets without a $1500 or more minimum balance that you'd need to open a Scottrade account. And the way crypto has been going until lately, we all look like geniuses most of the time regardless of what we're invested in. Resteemed.
That is all true. There is no need for crypto brokers that charge $75 a trade. lol You made some great points. You got a new follower. Nice to meet you.
I agree with the alt-coin low priced coins scenario. People want 10X gains, not "just" 50% or so which is what they feel they might get with the larger valued coins.
But BTC and ETH also serve a very important purpose. For the most part, the alt-coins are traded in BTC and ETH so people have to buy them first before buying an alt-coin.
Also for most ICOs, one needs to buy in using BTC and/or ETH.
I see a big rise in all cryptos for 2018 as the cryptocurrency field has become more well known. Also hedge funds and other financial institutions are buying in with a lot of new money added. HODL and buy.
HODL and BUY!!!! That is the truth. I agree, having BTC and ETH are needed if you want to buy anything else and they are not going anywhere for a while. Good point. Thanks for reading.
Yeah, I agree in a way. Since you have to talk in such small decimals, it makes it hard to compare to other currencies. If you are going to use it as a type of "cash" then pricing things at 0.00324 BTC is not natural. They need to come up with some terminology for smaller amounts. Like maybe 0.0001 is = to 1 Bit Dollar. Maybe some sort of "Stock Split" where every bit coin becomes 100 bit coins.
Dude that is an interesting idea. Great thinking.
In my opinion, you dont need to invest in Bitcoin or Etherium to profit from their gains, as smaller cryptos are denominated in the larger ones, the smaller ones generally track the larger ones anyway.
For example if you put $x into Bitcoin on 1stJan 2015, you would have roughly 5000% return, not bad at all.
If you put the same $x into one of my favourite coins Gridcoin, you would have about 10,000% return, and Gridcoin is really able to boost its price another 10x quite easily.
Its trading volume that gives the best indication of ability of a coin to rise or fall, smaller traded volume coins have less resistance in both directions, because less $ or BTC is needed to move the price.
You are a wealth of knowledge! Great points. I do have a question. Why do you like Gridcoin so much?
I like #Gridcoin because of its positive impact on humanity, Gridcoin doesnt waste energy on pointless hashes, instead it does PoS to secure the chain, but also rewards scientific computations on the #BOINC distributed computing platform.
What does that mean? Well you earn GRC by helping Cure Childhood Cancers or do cutting edge research into other diseases or 3d map the Milky Way or do cutting edge particle physics at CERN and a bunch more stuff.
It wont slow your computer down, so you can blog on Steemit while earning GRC and making the world a better place. I think such cryptos will dis-arm those saying this space is for terrorists and criminals, so it has great long term survivability.
That sounds so awesome. I'm in! How do I start? I'm going to read your links. I appreciate it.
You can start with BOINC simply by downloading it from https://boinc.berkeley.edu/download_all.php and then signing up for projects you like.
Gridcoin is separate, if you do want to earn GRC as well its best to follow the guides at https://gridcoin.science/ and follow the Get GRC dropdown.
For solo mining you will need to buy around 2000GRC, if you dont like that idea follow the pool mining guide and you can start with 0GRC.
There is a huge presence here on steemit, lots of folks on Reddit, Telegram, Slack, IRC and pretty much everyone is nice and helpful.
Dude, you rock. Thank you so much. I'm going to start looking into it. I appreciate it. I'll let you know how it evolves.what moves I make. Thank you!
As always a useful post. I still have lots to learn but will get there eventually.
Thank you! We all have lots to learn. Luckily we're still in the very beginning of all of this and we're ahead of the curve. Thanks for reading and replying!
I used to think the same thing. You know what got me... The percent it goes up is the % you make on your money, period. Doesn't matter how much of a total coin you get.
That is so true. My Bitcoin has doubled like 5 times since I bought it. Lol It is the percentage. But I do like having 10,000 doge.lol Thanks for the great reply.
Very good point @qalkingkeys. They wanna hold full token becoz they just realise only the existing value of it against any fiat currency. Most of the new comers hardly understand Blockchain technology. Just bought it becoz saw the headline news of rise in price.
So true! The market will correct itself over time and the coins that have poor technology won't make it. Thanks for reading and the kind words. You have a new follower.
With my great pleasure :-)
Great article! I agree with you, that you should look at the growth, not just the price.
Couldn't agree more. Thanks for reading.
Rome is never built in a day but most people want to make wealth overnight
Just because bit coin is cheap they became worried😁😁😁
Yeah I agree. Greed is really driving the market right now.