It is very easy to find altcoins that performed below expectations in the last 10 months of a bearish market. Same way you will hardly find altcoins that successfully swimmed against the storm, increasing in value.
Recently, a Redditor complained: “I bought the ‘dip’ a dozen times this year, went down after each time.” Another said: “I’ve lost 95 percent of 25k and have been buying all the way down.”
The “hodl” meme that made great impact in 2017 has now been abandoned, as this has been proven to be a disastrous strategy for anyone who has great investments in altcoins. The BTFD (Buy the F-Dip) meme is also hardly used, as traders have got to understand that the dip most of the time is usually a precursor to a series of even lower dips.
First Lesson: There’s a lot of difference between a loss of 90% and that of 95%
Wanchain (WAN), from its all-time high (ATH) dropped by 90% and from the Onchainfx’s helpful break-even multiple column, WAN to reach its initial ATH will need to do a 10x. In comparison, Icon (ICX) went down 95%. It would seem that ICX has been worse than WAN and would take it 20x multiple to attain its initial peak of $12.04. In comparison, Icon (ICX) went down 95%. It would seem that ICX has been worse than WAN and would take it 20x multiple to attain its initial peak of $12.04 per token.
Second Lesson: Market Cap of Forked Coins Should not be Trusted
Market cap is a very crude yardstick and when it comes to forks, it is particularly bad. The number of holders of BTC who could technically claim the forks, usually calculate the market caps of coins such as bitcoin diamond and bitcoin private. But to the fact, these minority forks do not interest most bitcoiners and for this sole reason, will not bother obtaining them, which will lead to a lower circulating supply as well as their market cap.
Third Lesson: There’s nothing called Price Floor
That an altcoin is down by a value higher that 90% doesn’t indicate that the road to (partial) recovery is close. A good number of traders lost so much this year, not because they bought at the top but simply because they bought at where they believed to be the bottom.
In case of top cryptocurrencies like Ethereum, bitcoin cash, bitcoin core most investors didn’t buy these assets at their all-time highs. For example, anyone who held bitcoin or bitcoin cash over a year ago would still be up on their investment by about 30%.
The crypto market isn’t as gloomy as crypto critics claim- asides traders that invested in risky ICO tokens and altcoins during peak mania. Recently, an investor made a confession: “I had a dream of making so much I could retire. I thought it was a once in a lifetime opportunity to make tons of cash and I was worried about missing out so I took a huge risk. Life has humbled me. I’m an idiot.”
