Retail Investor Psychology + Speculative Instinct + Cryptocurrency Market Structure.

Most retail investors prefer to buy altcoins, **the main reasons are as follows:

✅ 1. Psychological Aspect: Retail investors naturally pursue the "feeling of getting rich quickly"

Bitcoin Altcoins

Stable growth, low volatility Easily doubles in a short time

A 2-3% increase in one day is strong A 20%-200% increase in one day is possible

Hard to achieve "financial freedom" Gives the illusion of "quick wealth"

💬 To put it bluntly:

"Buy BTC, it takes a year to double;

Buy altcoins, it might double by tomorrow."

✅ 2. Price Illusion: Retail investors are more easily attracted by "low prices"

1 BTC = $100,000, many people are afraid to buy after seeing this

1 altcoin = $0.001, looks "cheaper" and easier to "buy a lot"

💥 But in reality, the amount spent is the same:

For example, $100 to buy BTC vs $100 to buy 100,000 worthless tokens, essentially the same, but the psychological feeling is different.

This is called: "Unit Bias + Quantity Illusion"

✅ 3. Community and Platform Recommendation Mechanisms Amplify the Trend

Major platforms launch new coins → High buzz, FOMO emotions erupt

KOL hype, media trending topics, launch events → Many "bull market memories" start from altcoins

Everyone in the group is discussing: "XXX pumped! XXX hasn't pumped yet!"

📌 Altcoins have "stories" and "buzz", making them easier to spread and hype.

✅ 4. The growth of Bitcoin is indeed getting smaller

BTC has risen from $1 to $60,000, already a 60,000 times increase;

Now that the market cap is too large, it requires $1 trillion to increase tenfold, which is unrealistic;

Altcoins have smaller market caps and concentrated chips, making 5x and 10x easy (at least in the early stages)

This leads retail investors to think that "Bitcoin can't grow as much as altcoins", even though altcoins are riskier.

✅ 5. Most people are gamblers, not investors

Most retail investors do not understand technical analysis or fundamentals, their purchases depend on "hearsay, buzz, and feelings".

Altcoins are highly stimulating, like a lottery, naturally more attractive:

"Even if I lose 8 times, as long as I hit once for 10 times, I can turn it around!"

This is a typical "risk-return preference illusion".