3 reasons why you should not avoid billion dollar cryptocurrencies
With all the hype around ICOs, constant influencer promoting, lambo tweets and 100x gain hunting — the ICO game is attractive.
I would even go as far as say it’s addictive. Some investors are just itching to get into the next ICO, so much so, it’s to some degree satisfying to send that ETH to that ether address as you experiencing ‘getting into’ a project.
I get the logic though, and to some degree follow it myself… buy for £1 and sell for £10 and if you can get that thing worth £1 for £0.75, then even better. Getting in at ICO, feels like getting in at seed and the best place to maximise your gains.
Although this can be true…it’s not always the case.
Many times high quality ICOs have dumped on exchanges and can often trade below ICO price in the short term.
You see, the danger of an ICO addiction is that it can blind you to believe it’s the only and best way to make insane gains. And as much as I enjoyed some real winners from ICOs — it’s not the only way to make a great ROI in crypto.
There is another part of the market that not many influencers speak about and is often overlooked, simply because the perceived gains may not look that attractive (albeit perceived).
That other part is the top 20 cryptocurrencies or cryptocurrencies with billion-dollar caps.
Now in my opinion, I think it’s a mistake to avoid these altogether, especially as more money will eventually enter the market and I’m going to tell you why.
Here’s 3 reasons why you should not avoid billion-dollar cap cryptocurrencies:
#1 — Market Acceptance
When looking at cryptocurrencies, it’s easy to think that it’s too expensive or that you can make more money buying a project at £50mln marketcap. This is true, however price should not be the only factor when considering a cryptocurrency. Price is important, but price doesn’t only represent potential ROI, it also communicates perceived value. The market values this project for some reason, to the tune of this high value, which means it’s worth looking at and could indicate It has the potential to stick around for the years to come.
#2 — Billion-dollar caps can still 20x
A false belief is that at a billion-dollar marketcap, people have already made their money. This is true. They have. They have made a lot of money on this project and you’re getting in late. But it doesn’t matter how much they make…it matters how much you make.
When I got into crypto, Ethereum was around £40 and bitcoin was around £1000, ethereum peaked at around £800 in the following 12 months and bitcoin around £16,000… that’s a 15–20x from the top 2 coins! Out-performing many ICOs in the same timeframe. You can make a very decent ROI on billion-dollar market caps, even the top 2.
#3 — Liquidity for big players
Crypto veterans are richer. And one of the most important things to consider when investing in the cryptocurrency market, especially as our portfolios grow, is liquidity. It’s very, very important. The strategies these veteran crypto heads used before won’t work now, given the high volumes they’re are dealing with.
There’s no point turning £5k into £100k or $50k to $10mln if you can’t get that money out and lock in profits because of low volume. As new money enters the market, especially from the bigger players, they are going to make sure there is enough liquidity to lock in profits, millions and millions of sterling/dollar volume. This will be the deciding factor of what many invest in, so in my opinion, a lot of money will continue to go into billion-dollar cap coins because of the liquidity, which will of course impact the price and ROI.
In a following post I will share some of the billion-dollar cap cryptocurrencies that I think are worth watching and would love to hear your opinion, follow me to be notified of this and future posts.
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Discover the right way (and the wrong way) to analysis hard caps and why a high hard cap is not always a bad thing, plus more, in my free guide: ‘7 Step Analysis To Quickly Spot High-Quality ICOs & Cryptocurrencies’. Get My Free Guide Here.
Disclaimer: Any information in my blog posts are for educational purposes only and are not to be taken as financial advice. The views expressed are my opinion only. Please remember investing in cryptocurrencies is very risky and you can lose all your money. Please consult your own licensed financial advisor and operate within the laws of your country of residence. I may or may not have positions in the cryptocurrencies mentioned in my blog posts
