Bitcoin has shown some strength in July, meanwhile some alts haven’t kept up. This means there are some potentially amazing alt deals.
Let’s put it this way, in a world where Bitcoin goes back to a penny, then there is never a good crypto deal again. If however historic patterns play out, then some of these coins are starting to look really good. Let me explain:
Let’s say each alt will go back up to its USD all time high and Satoshi all time high (its price in Bitcoin).
If that happens we are talking 2x gains in Satoshis for Litecoin and 5x in USD. We are talking 10x+ for Verge. We are talking 2x/3x for Ether. 2x for BCH. Etc.
Simply put, although the potential downside is filled with tears and pain (its always that, welcome to crypto), if we are anywhere near the bottom of the alt market there are some potentially killer deals sitting on the table right now.
Bitcoin itself is probably a decent buy even if things just go alright. Get in at sub $7k, get out at $8k. That is $1k a coin even if we don’t see the moon again any time soon.
However, let’s be a bit more bullish and imagine a world in which we reach the all time highs at some point.
Now you are talking about 3x on Bitcoin and 4x plus on most alts in USD. Now imagine a world in which we blow past the all time highs like we have done so many times before. We are talking about 10x plus on some of these coins.
Where can you find a basket of so many potential 10x assets? You kind of can’t…. anywhere, in essentially the history of capital markets outside of a few specific times and places (like 1995 silicon valley).
Things could get way worse before the get better… but like, if they get better any time soon this is likely to be looked back on as a decent spot to build positions. Meanwhile, if this current BTC rally holds this could in retrospect be the bottom of the 2018 alt market.
Very few were telling you to take a serious look at alts in October – November 2017. No, you didn’t hear about it until December 2017 – January 2018 after all the 1,000%+ gains.
You heard about buying Litecoin after it went from $80 – $400 the first time. Well, here we are and Litecoin is $80 (.012 sats) and Verge is $.02 (0.00000370 sats).
When I see those prices I say, OK so I can see LTC hitting $40 / .006 and I can see Verge hitting sub $.01 and even 0.00000030 sats AND I get that at one point both were much lower (obviously, there is risk of downside).
However, if the better parts of crypto history repeat, then these have room to hit $400 / .025 and $.25 / 0.0002000 respectively (if not higher)… even if Bitcoin takes off without them for the first part of the next run.
All the negatives aside, if the best cases play out, those are some insane potential gains.
Are alts at the highest they will ever be? I really, really, really doubt it.
Are they at the lowest they will ever be in sats… very likely not.
But we are talking about trying to time the bottom of the alt market, that is near impossible. So we have to be willing to take risk and get it wrong while building a position for the future (if we want to be long in alts).
There were many opportunities to get it wrong in the fall of 2017 when it came to alts, and at times being in Bitcoin or dollars was by far the best move… yet, by the time January 2018 hit all those “bad” investments from 2017 suddenly turned into money bags. We are no longer at the top of the alt market, alt season hasn’t been here for a while, for me that makes me bullish on collecting alts.
Bottomline: Look at those Verge charts above (for example). When it went up to a quarter, if you were like “damn dude, I wish I bought Verge cheap” then you need to take a serious look at the current chart. 2018 is like a fractal of the second half of 2017 and its right at the same point it was last time it went 1,000%+. Will Verge do this again? How would I know?! For all I know it could go to zero. Clearly crypto is insanely risky and you have to be ready to lose it all. That said, if you want to be in alts, and if you think history could repeat, or if you bought XVG at a quarter and want to lower your price, clearly this is the part of the cycle where you start looking for deals. Don’t worry if you missed 2017 prices, bought at the peak of 2017 summer or 2018 alt season in January. Whatever the case, you have wiggle room to get some potentially good prices in the here and now. Either prices are going to get way better or not, but for sure from this perspective they are far from the worst they have been.
RISK: If you take the plunge and go long in alts, get ready for some pain. It comes with the territory. Everyone who makes it from the bear market to the next alt season will have felt pain. No way around it unless you perfectly time the bottom. If you aren’t ready for that, take a step back and think about your life choices 😉