2017 to 2021 – What most retail investors don’t understand about the ALT coin market

The alt coin market. It’s a fast paced world with multiple levels. From the future blue chip cryptos to the lowest depths of the shit coin market. There are opportunities to be had at every turn.

We all know the cycle. First BTC moves, then ETH, then high caps, then mid caps, then low caps and in the mix of this there will be brand new coins in and out of price discovery.

Back in 2017 we seen an influx of new projects and a new influx of new wide eyed investors soaking up all the information they could. But then the CME came and many hopes and dreams were crushed.

This was market manipulation in its purest form and IMHO was designed to crash the price of Bitcoin at the time. The thing is, the Bitcoin crash at the time was also in line with the regular crypto cycle as per the TA. However, in the rubble of destruction laid many ALT coin investors who went from being 6 and 7 figure earners, back down to 4 and 5 figure earners. Many even left the market, never to return. I know some of these people and they have sworn  to this day they are done with it. The devastation and emotional trauma for some of these people were too much to take.

Many others stayed in the market, licking their wounds as they capitulated and got into other projects or sat in USDT for the majority of the bear market, waiting.

In this time, many of these people developed a bad taste in their mouths for the projects they were into in 2017. Again the trauma of loosing 90% of their wealth was likely too much. You can see the sentiment rampant in the cryptocurrency chats, 4chan, reddit, twitter and other spaces where crypto investors and traders hang out. Many of these particular people believe 2017 projects will never return to previous ATH’s. Whats more is many of these people believe that 2017 projects wont even move at all. Like the people who claim that “bitcoin is dead” any time it corrects…

But heres the thing.

These people are flat out wrong.

They are thinking with their emotions and ignoring ALL of the fundamentals. And the fundamentals say that many of these projects will not only make it back to their previous ATH, they will surpass it.

Here are just a few of many reasons why:

1 – Some of these projects stayed building all through the bear market, developing their chains, accumulating devs and lunching useful projects on their chains.

2 – The projects that did what is previously mentioned also stayed solvent. Budgeting their money and weathered the storm of the bear market.

3 – The projects that did all this are all newer 3rd generation tech but is also PROVEN tech. As they have been running, processing transactions for well over a year now.

4 – The tech mentioned is faster and cheaper to use then ETH and ETH has yet to scale.

5 – GAS fees on ETH are way too expensive. Some have claimed to pay into the 100’s of dollars USD to move money on the Ethereum network to make a single trade.

6 – There are multiple third generation chains that offer different things. It’s not a 0 sum game, many of them will get market share because they do different things in different ways.

7 – These third generation chains are both newer than the slower, older more expensive tech but also older and more proven than the newer tech that has not established themselves yet. This one is important.

Why is #7 so important?

Because this bull cycle is the cycle of institutions getting into cryptocurrency, as we anticipated years ago. The thing you need to understand is that different corporate and institutional entities need different levels of risk. Because we all know the more risk, the more reward and the less risk, the less reward but more reliable. This is a universal law of the reality we live in.

Institutions who deal in risk will likely tend to dabble in less risk entering an emerging market. In other words, for these corporations who already do risky things day to day, may tend to stay in the less risky crypto assets. Think Bitcoin and Ethereum.

Other institutions who are not as risky within the realm of their own day to day dealings may tend to dabble in the middle ground because they can afford to take on more risk with the chance of more reward from said risk. Think high to mid caps.

And for some other institutions, they may gravitate toward the more risky assets in crypto. Seeing as their day to day dealings are never in any emerging markets or anything risky at all. They may want to add risk to get the maximum amount of gain. Think mid to low caps and even ICO’s, pre-sales and private sales.

But the thing is that these institutions ALL want to get into crypto because not getting into crypto at this point IS a risk as a whole.

It’s really that simple.

Conclusion: Smart money and/or big money is not going to care that you got rekt in 2018 when the bear market hit. Depending on their level of risk, they will gladly take the possible 1000’s of % gains in great projects from 2017 that are still downed by 80% since the previous ATH and watch them reclaim ATH and surpass it. Many of these projects are primed, and literally sitting on launch pads just waiting to explode.

Im not saying all of them will moon, but the ones that will are not hard to spot. Again, they are still here, working and building. Some of them are still what can be considered blue chip, sitting right there in front of your face.

I suggest you do not ignore them.

Categorised in: Cryptocurrency Markets, Fundamental Analysis

This post was written by BlockAdvisor