Too many coins on the market make investors confused in making investment decisions, especially new ones. One of the biggest questions often asked is whether to invest in:
Old Coin: It has been released for a long time, there is little pressure to sell because most of the tokens have been unlocked, but the "story" is old, the product is not suitable for current market trends.
New Coin: Newly released, providing products that the market is in demand, but also under high selling pressure.
There is no investment formula for new coins with high inflation and old coins with low inflation. Both types of assets have the same ability to grow or decrease in price. Instead, investors need to consider three important factors:
Does the project still have momentum to develop?
If coin prices increase, who benefits the most?
Bitcoin price movement trend.
For newly launched projects, it is necessary to see whether their products are suitable for market tastes at that time, whether the project team is good, whether there is a long-term development plan... In addition, it is necessary to Compared with other projects in the industry, which project is receiving the most attention from the community?
Investors also need to research factors such as circulating supply, inflation rate, and wallet addresses with large holdings to know if coin prices increase sharply and who will benefit the most.
In addition, another important factor to consider when choosing the time to invest (both for new or old coins) is the trend of Bitcoin and the crypto market. In particular, you should avoid buying when the market is too hot because if Bitcoin increases sharply, the price of altcoins usually just goes sideways. Altcoin prices only increase when Bitcoin goes sideways and will plummet by 15% to 20% if Bitcoin collapses by just 5%.
Summary: Choosing newly launched projects with low supply and products suitable for the market will be somewhat less risky. This is similar to project groups that have been released for a long time but have new products that catch up with the trend.
Both old and new projects have the same ability to grow and decline. Investors need to consider many other factors instead of just paying attention to their launch time.