Why Altcoins Are More Ideal For Trading, Not Investing?

The crypto market cycle in 2025 proves that the game for Altcoins is purely for trading, less than ideal as an investment asset that can be held for the long term. So why did that happen?

#1 More Altcoins, Fixed Liquidity.

The main factor that makes it difficult to hold Altcoins is liquidity, which is not as much as before, so it is very important to rotate because smart money that bids on certain sectors will rotate their profits to move other sectors.

#2 Too Many Bad Actors.

The ease of creating new coins has caused more and more bad actors to take advantage of this momentum to create coins that are simply scams.

#3 Bot and Algo Domination.

The situation where there is only a little alpha in this market, causes competition to become more competitive and various algos and trading bots are born which are ready to be your competitors and can take advantage of every movement of existing Altcoins. Bots and algos are short-term trading in nature, not held like the usual fundamental trading and investing methods.

#4 Bitcoin Becomes a Safe Bet.

In a cycle where institutions and countries all race to buy Bitcoin, Altcoins become less attractive to investors so they eventually give up and buy Bitcoin for profit, making the Altcoins market even less attractive and forgotten.