Hello everyone, I am Shen Ge. After years of navigating the cryptocurrency world, I have seen too many people joyfully doubling their investments with altcoins in the short term, and I have seen even more people exit quietly after hitting a pitfall and losing everything. Today, I will discuss the core differences between mainstream coins and altcoins from a practical perspective, as well as my underlying views on these two types of cryptocurrencies, helping everyone find a more stable direction in trends.#ETH创历史新高 #主流币与山寨币展望
1. Mainstream coins: The 'stabilizing force' in the cryptocurrency world, but don't expect to get rich overnight.
In my eyes, mainstream coins are like the 'blue-chip stocks' of the cryptocurrency world, serving as the ballast for the entire market. What are mainstream coins? They are not simply the top 20 by market cap; true mainstream coins must pass the tests of time, consensus, and real-world application. For example, Bitcoin (BTC) has risen from a few cents to over $60,000 in ten years, relying not on speculation, but on the consensus of being 'digital gold' and the global demand for safe-haven assets; Ethereum (ETH) can maintain its second position because it supports the entire ecosystem of DeFi, NFTs, Layer 2, etc., effectively solving the problem of 'how blockchain can be applied in real life.'
The core advantages of mainstream coins can be summarized in three points:
1. Strong anti-drawdown characteristics, suitable for foundational investments: In last year's bear market, Bitcoin dropped from $60,000 to $15,000, but the decline was far less than that of over 90% of altcoins. This is the power of market cap and consensus. For ordinary investors, using mainstream coins as a base can at least avoid the nightmare of 'waking up to find your assets have gone to zero.'
2. No liquidity issues, free to enter and exit: mainstream coins can be easily traded on any major exchange, even if you hold millions in market value, you can quickly close your position. This is something altcoins can never match—how many people have small coins and find out when they urgently need money that 'their sell order has been hanging for a day with no buyers'?
3. Clear trends are easier to grasp: the price movements of mainstream coins are highly correlated with the overall market, and technical signals are more reliable. For instance, Bitcoin's halving cycle and Ethereum's upgrade points are predictable trend anchors, making it much less likely for beginners to fall into traps by following the rhythm.
But I must remind you: mainstream coins ≠ guaranteed profit; their volatility is still significant (for example, it is common for them to drop 10% in a single day), and their short-term explosive potential is far less than that of altcoins. If you are looking for 'doubling your investment in a week,' mainstream coins may make you feel 'not exciting enough.'
2. Altcoins: High risk, high reward 'gambling table'; 90% of people are losing money.
Before discussing altcoins, let me pour some cold water on everyone: 90% of the altcoins on the market are essentially 'air coins' or 'money-grabbing tools.' I have seen too many projects where the white papers are copied, team backgrounds are vague, and after going live, they rely on 'group promotions' and 'false good news' for speculation. Once retail investors take over, they directly dump and run, leaving chaos behind.
But it cannot be denied that there are indeed opportunities hidden in altcoins. Those who can make money from altcoins often possess three characteristics:
1. Understand the project, avoid 'storytelling' coins: truly promising altcoins must have clear real-world applications. For example, Solana a few years ago solved Ethereum's congestion issues with its 'high-performance public chain,' and those who invested early reaped the benefits; while those shouting about 'metaverse' and 'Web3' but haven't even launched a testnet, one loss after another.
2. Control your position, only use 'spare money' to invest: the position in altcoins should never exceed 20% of total funds, and stop-loss limits must be set. I have seen someone put their house money into altcoins, reluctant to sell when it rises, afraid to cut losses when it drops, ultimately losing all their principal and going into debt. That's the dumbest move.
3. Move quickly, don't be greedy for 'tail-end markets': altcoin trends come quickly and leave even faster. For example, if a hot coin triples in value, and you chase in wanting to earn the last bit, you may very likely end up buying at the peak. Remember: making money with altcoins relies on 'swing trading,' not 'waiting for faith.'
Shen Ge's principle is: non-professional investors should stay away from altcoins as much as possible. If you really can't resist participating, ask yourself three questions: Does the team behind this coin dare to show their faces? Are there real users using it? Can you bear a 50% drop? If any of these questions get a 'no,' just pass.
3. Shen Ge's ultimate advice: use mainstream coins to build the framework and treat altcoins as 'seasoning.'
Investing is not gambling; the core of long-term profit is 'surviving.' In my view, the asset allocation for ordinary investors should be '70% mainstream coins + 20% potential altcoins + 10% cash':
- Choose 3-5 mainstream coins, such as Bitcoin, Ethereum, or BNB—these are 'veterans' validated by the market, and they serve as a 'safety net' for your assets.
- Choose only 1-2 altcoins, and they must be projects you have thoroughly researched and that have made real progress. Treat them as 'the icing on the cake,' not as a 'lifeline.'
- Always keep cash; when the bear market hits the bottom, the opportunity to buy mainstream coins is 100 times more reliable than altcoins.
In conclusion, the trends in the cryptocurrency world are always changing, but the logic that 'consensus determines value, and real-world application determines survival' remains unchanged. Mainstream coins navigate through bull and bear markets based on consensus, while altcoins have a chance to rebound only through real-world applications. For most people, holding onto the certainty of mainstream coins is a more sustainable way to survive in this market than gambling with altcoins.
Stay tuned for my trend analysis; next time we will discuss 'which mainstream coins are worth investing in at the beginning of a bull market.' Investing carries risks, and decisions should be made cautiously. See you next time!