Post
Topic
Board Altcoin Discussion
Re: Low cap altcoins best for rising price?
by
wajik-tempe
on 16/10/2023, 07:15:21 UTC
I don't have much faith in low-cap altcoins, I don't think any of them will grow 100x or 200x in a bull market and most dump.  Coins that have more liquidity have better prospects in the future.  I think low-cap coins will be chosen by those who have good capital to invest.  In most cases, low-cap coins are invested in the hope of higher returns, but many people don't know that it also comes with risks.
I think alternative cryptocurrencies are already riskier for investment.  Many people here might think that because many of the major coins are low-caps that it might also give good profits in futures, but I think that's actually a misconception.  The success of a project completely depends on the background and potential of the project. However, it is true that occasionally some of these alternative coins perform exceptionally well, but this amount is very small. In this case, the investor or the trader has to carry out various analysis of trading. However, there will be suggestions that such coins should never be long term investments and also investment should be in little amount. Because the chances of encountering losses are high in these, over-investment can expose the trader to heavy losses.
It is critical to understand the risks involved. These small-cap coins frequently lack the liquidity, stability, and track record of bigger prominent cryptocurrencies. Values may skyrocket when the market is up, but they can also plummet swiftly when the market is down or when market circumstances are adverse. Price swings are frequent in the short term, but it might take years for a project to reach its full potential. A modest amount of your portfolio allocated to small-cap cryptocurrencies has the potential for great returns, but it's vital not to commit too much and to maintain a balanced investment strategy.