/biz/ - Business & Finance

[Anonymous No.8886740]

is it wise to just invest in expensive coins like ETH and XMR if you’re only investing a few bucks?

let’s say you have 2500 dollars to invest. You could put that in ETH and XMR but only have several coins. The alternative would be cheaper alt coins which seems more alluring because you’d have thousands of coins that could reach the potential of ETH and XMR.

However, everything seems to move together up and down and the percentage they move is all very similar.

So there’s no actual difference in 2 eth increasing 20% in value to 2000 LINK increasing 20% in value. It’s still the same return, no?

And by that logic wouldn’t established coins with value be a much safer investment?

Basically what i’m saying is why not just keep your money in coins that are already established?

[Anonymous No.8886766]

>>8886740
Because you want to multiply your money by integers larger than 1.

[Anonymous No.8886768]

>>8886740
Because alts like link have tiny marketcaps compared to eth and xmr, so alot more potential of room to move

[Anonymous No.8886794]

>>8886740
>expensive coins

[Anonymous No.8886934]

Some guy from the friendly non pump and dump ethical +10'000 member bitpam /biz/ CryptoCurrency trading/mining/coding discord server said it depends on the coin. xrp eth btc long term hodls.

discord.me/bitpam

[Anonymous No.8886967]

>>8886740
wait, this was the chick that was in clueless? wew laddy

[Anonymous No.8887301]

Right, it doesn't matter of your $2500 goes up 20% on eth or 20% on link. $2500*1.2= 3000 regardless where you get the .2...so there's no such thing as a "cheap" coin, especially when you can get things like eth in units of 8 decimal places.

People tend to go for "cheap" coins because it sounds easier to double some 5 cent shitcoin than it does to double something that costs $500. Usually, based on market cap, that's actually true.

I go for the "cheap" shitcoin because people have unit bias. Like you say, it feels better to own 25,000 ZIL than 0.15 BTC.

Since your goal is always to accrue more BTC, you pick something you think will gain the most against BTC. Random "cheap" coins like XVG, ADA, whatever get huge pumps now and then because people have the illusion of safety buying something that's "just 15 cents" even though they're risking the same amount of money.

If you want to buy and walk away for a few months at a time, stick to big names like ETH and BTC. If you want to trade, start looking at those shitcoin flips.

[Anonymous No.8888143]

>>8887301
Listen to this guy he's actually giving good advice on /biz/ and that's rare nowadays. You should have been able to conclude that a 20% increase in ETH or LINK is the same, but it is undeniable that a low price has a measurable psychological effect and don't ever forget that it is the money of the masses that will drive the price and the masses are irrational especially with promising technology. Also it is better to buy a coin with both a low market cap and low price because statistically it is more likely to make you money. Also statistics show that the prices for traditional financial instruments are often set at whole numbers and half integers more often than they should be (there is no evidence to support this for digital assets yet)