Wow, altcoins have been getting beat down recently. Why? you ask. Good question. Well there are a few reasons why. I first want to talk about why I believe altcoins are taking a beating, then I will talk about what you can do to capitalize on the situation.
One of the richest investors in the world, Warren Buffett, said to “Be fearful when others are greedy and greedy when others are fearful”. Even though he speaks out against bitcoin, his words ring true in this situation. A lot of people are flocking to bitcoin right now as it is rising at an amazing pace. Investors think that they can ride the train up while it is moving fast, and that is true. However, I would venture to say it is possible to make a lot more by investing in Altcoins right now.
I want to explain the current bitcoin landscape because altcoins are directly tied to bitcoin. Here is a quick explanation of why I think altcoins are tanking. First off, the obvious reason is that we have just recently had a couple of the most significant forks bitcoin has ever experienced. When bitcoin forks, a new coin is created giving those that hold bitcoin free tokens. First it was Bitcoin Cash, then Bitcoin Gold and now Segwit2x. A lot of people with large amounts of cash in cryptocurrency moved a large portion to bitcoin in order to get all these free coins. There are 3 main ways to capitalize on the bitcoin hardforks:
- 1. Move all your cash from altcoins into bitcoin in order to receive the maximum free new forked tokens…. Jump for joy!
- 2. Move a lot of cash from altcoins into bitcoin, wait for the price to rise and then move it all out right before the fork before bitcoin makes a correction… Dance in the Street!
- 3. While a ton of people are consolidating most of their coins and cash into bitcoin some are viewing this as a golden opportunity to buy up undervalued altcoins…. Ding, ding, ding… we have a winner. This is what I have chosen to do. Why? Because I can buy up tons of undervalued altcoins that will easily outperform bitcoin in the short term. Then, after the fork and money starts to flow back into altcoins, I will wait for altcoins to explode up to a certain amount then move a good portion into bitcoin when it has dropped post fork… Bam, do the moonwalk!
Buying bitcoin at this moment is following the crowd to the all-time high. When bitcoin corrects, some will lose what they have gained in bitcoin for the short term and will have missed out on the altcoin low prices just to get a few free coins that will surely drop in price.
Having said all that, let’s dive into a couple of amazing undervalued altcoins. From a general perspective, coins that are Protocols, Platforms and Privacy Coins are great long-term bets. Why? Well, in a former life I developed websites (for 17 years) and the internet was built on top of protocols and platforms. Privacy coins will always be in demand as there are many that like the fact they can have lots of money and others not necessarily know. While this could be used for illicit purposes it also is a desire for many that just want privacy.
Two amazing coins
0x (ZRX) – 0x is just getting started. 0x is a Protocol that other apps are built on top of. Just as in the early days for the dot com boom, protocols will be the foundation of the blockchain app future. Early coins that are backed by a protocol will be around for the long-term and will definitely see lots of growth when new, exciting apps announce they are building on top of the protocol. For example, here are a few projects currently building on top of 0x:
0x is a great coin for swing trading and will eventually see a parabolic rise as more and more apps are built on top of it.
Groestlcoin (GRS) – this coin has had some tremendous growth lately and for good reason. It was the first to activate SEGWIT (Segregated Witness) in 2017 basically increasing the block size limit by removing the script and signature from the transaction block send in a transaction. This will help scalability which was a major issue for bitcoin. Another key feature of this coin is that it allows users to mine the coin (get free coins by running a script on your computer) with less computer power. Users can run mining software on their normal desktop or laptop and get free coins. In comparison, bitcoin is almost if not impossible to mine from a regular computer profitably. Long story short, this will bring a lot of users into this coin just to mine it which will stabilize the coin and make it a more desired coin. Many will want to keep this coin around to mine it and make a profit from that. Groestlcoin currently has a marketcap of approximately $39,997,745 which puts this in the top 100 coins. There are many crap coins in the top 50 – 100 coins so this coin can easily beat some of those out and grow. While I think this coin is a little overbought at the moment I still believe it has a bright future.
We that’s all for now. Please check back often for more altcoin insights from CryptoDayTrader.
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