Opinion: Altcoins Are Best Played When Bitcoin Is in a Range

During a Bitcoin bull run, altcoins are not worth paying attention to. This was stated by Andrey Velikiy, the director of business development at paytomat.com, during the online conference ‘Bitcoin 2020: New Horizons’ on ForkLog’s YouTube channel.

Buying an altcoin makes sense only during the Bitcoin’s sideways movement, he says:

“If Bitcoin is moving in a corridor, then altcoins allow you to multiply the amount of Bitcoin,” the expert noted.

Velikiy defines the role of altcoins categorically: they are needed so that their holder does not become wealthy.

“Alternative coins give big and fast 10x gains. Bitcoin won’t surge tenfold in a day. Therefore altcoins are needed for quick profits or for quick losses – it’s a matter of luck.”

Before investing in any coin, the expert advises evaluating what is happening in its team. Bitcoin is maximally decentralised; it has a community, developers, holders and miners, each pursuing their own interests. And the less decentralisation, the more problems:

“One day I became interested in a seemingly promising coin. However, at one of the cryptocurrency conferences I met the founder of this project and he was high. I lost 99.99% of my investment in this coin,” Velikiy shared the story.

Before investing in an altcoin, a user should understand which exchange will list the coin and at what price, and what would happen in case of its dump.

“If the exchange collapses, that’s a big trump in Bitcoin’s favour; with altcoins you won’t be able to exit. Altcoins won’t recover and they can be driven to zero, Bitcoin, with a high probability, won’t face such a fate,” Velikiy says.

According to the expert, altcoins are needed because periodically they bring new technologies, devise consensus algorithms. Each of them carries its own vector for the industry’s development, which could potentially be used by the Bitcoin development team:

“That is what altcoins are for in cryptocurrency, so that Bitcoin does not sleep.”

Andrey Velikiy advises newcomers not to engage in margin trading and obvious scams and not to buy coins that are not in the top CoinMarketCap:

“Invest in altcoins in proportion to your overall portfolio. If you see in the altcoin’s team living, competent people who can tell you about their business model, that’s an unconditional plus.”

Earlier independent analyst Maxim Onegin stated that ходл всех форков биткоина will help counter the threat posed by a quantum computer.

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