Is investing in Altcoins still a good idea in 2020?

This is a very common question I keep reading on everywhere. The short answer is, it depends.

When you say altcoins, there are hundreds of thousands of altcoins. Ethereum is an altcoin too while Peercoin is also one. Where is Peercoin now? In the shitcoin hell.

As you realized not all alts are equals. Some alts are simply better than the others. So the question you are about to ask now is…

Which altcoins?

I guessed it right, right? I know I did.

Back to the question. My first rule while picking good alts is to pick mostly from the Top 50 biggest marketcap coins you see at Coinmarketcap. I know, there are also good alts with lower marketcaps as there are also major scams in the Top 50 but this one rule is for the absolute beginners.

My second rule is simply reading the project’s white paper. If it sounds dumb to you, then it is probably a scam. If you think what they are promising is way too good to be true, then skip it or think that investment as a gamble because it will be exactly like playing a high risk game in a casino.

My last rule is a bit specific. The chain’s inflation rate. If it is high, then unless the demand is very high, your coin will lose its value way faster than it should have and it also won’t go higher fast enough when the demand returns.

For Example:

ETH has unlimited supply and the inflation rate of ETH is also high but it has something that others don’t: ETH has high demand. If ETH had limited supply and way lower inflation rate, it would have been a lot higher in price now.

Doge on the other hand… way too many of them are around and way too many of them get mined everyday. That’s why you don’t see it making higher highs but only making some speculative spikes every now and then. (and then again it goes lower.)

Get it now?

Final words…

My prediction is, alts will make a good come back. Not all of them but a few of them. If you can place your bets right, there is no reason for you to miss this chance. As the professional say:

“Do Your Own Research!”

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