Altcoins like Cardano and Avalanche provide alternative approaches to scalability, governance, and decentralization. Yet their success depends on adoption, community support, and real-world utility.
Exploring altcoins critically teaches how innovation and market perception interact. Each project offers lessons in risk management, ecosystem growth, and the dynamics of supply and demand.How do you assess an altcoin’s potential versus its inherent risk?
In my case, I would first evaluate the team members and their past successes. Then, I would start by analyzing the project idea, how many projects have the same idea, and then whether it's a viable idea in the current market and whether the team is at an advanced stage of implementation. I also evaluate the altcoin's supply. Only when I see and am convinced that it's a project with a truly competent team and a unique idea, in which case I would risk investing.
But currently, I prefer to stay away from these new altcoins because they offer nothing relevant. Most are just copying other projects, changing their names, and promoting pump-and-dump schemes. So, it's not worth investing in one and having months of headaches. The last time I invested in a new project, the developer disappeared with all the coins and I lost money.