The altcoin sector is bleeding … why the worst could still be in front of us … how to navigate this dangerous market … what our crypto experts see coming on the other side of the meltdown
Perhaps the most common refrain from crypto investors during a bear market goes something like…
This pain is normal. Stay the course and focus the future. You can’t have the life-changing returns without terrifying drawdowns.
Now, this advice can prove to be wisdom, potentially helping nervous investors hang in there and make lifechanging returns…
But it can also lead to a devastating loss of your hard-earned dollars.
Since bitcoin, the grandaddy cryptocurrency, launched 12 years ago, thousands of altcoins have gone to zero. According to Coinopsy, from bitcoin’s debut through May 24th of last year, 2,047 cryptocurrencies failed. And that number is certain to be larger given the destruction in the altcoin sector over the past 12 months.
Perhaps investors were able to pull some of their money out before the doors closed for these failed altcoin ventures. If not, those investment dollars went up in smoke, and “stay the course and focus on the future” is the worst possible advice that investors could have followed.
***Unfortunately, an altcoin doesn’t have to go to zero to derail financial goals
Obviously, achieving your financial goals requires a return on your money.
But a return on your money carries an unspoken implication – at a minimum, you’ll get a return of your money.
But that’s not a guarantee in the altcoin world.
According to the crypto analyst Nihar Shah, 84% of new crypto coins are “underwater” one year after launch when measured in bitcoin. In other words, for every eight out of 10 new altcoins hitting the market, their value ends up below their debut price within 12 months.
Eager investors who bought in near the debut price aren’t simply getting a poor return, they’re losing their investment nest egg. It goes without…
