Take a look at this list.
#1 Bitcoin #2 Ripple #3 Ethereum #4 Bitcoin Cash #5 Cardano #6 Litecoin #7 Iota #8 Nem #9 Dash #10 Stellar
If you haven’t already guessed, these are the top 10 coins in order by market capitalization from 2017. In that year, these were considered the “blue chips” of the cryptocurrency space. Today, this list is almost entirely a graveyard of bad investments.
Bitcoin and Ethereum are up in value.
The rest of these coins have yielded negative returns since being featured on this list. Ripple and Cardano have managed to hold their top 10 positions (losing a few ranks), but the 6 others have fallen down to the 20s - 80s in terms of market capitalization.
Excluding Bitcoin and Ethereum (the only two coins up in price), the average percentage price decrease amongst the 8 losing coins is about -78%. When you factor in the top 20 coins (rather than 10) from 2017, the numbers are even worse. Almost every major coin not named Bitcoin or Ethereum has taken a bath. In blood.
What once was, no longer is.
Only 3 of the top 20 coins (Bitcoin, Ethereum and Tron) from 2017 have remained flat or increased in value. 9 out of 20 saw a -90% drop in value and 7 out of 20 coins fell 50 ranks or more in terms of market capitalization. You could literally have blindfolded an armless spider monkey and had him spit a dart at the entire list of coins in existence in 2017 and found a loser. Bitcoin and Ethereum were the only ‘get out of jail free cards’ for crypto investors.
As the saying goes, “past performance is no guarantee of future results.”
To be fair, I could have written this intro back in late 2021 during the altcoin explosion and concluded that HODLING is the key to winning, but anyone following that advice and holding anything other than Bitcoin, Ethereum, or Tron (nobody) would still have likely lost badly. 2017 is only 5 years ago, so it is a more accurate view on the change in the market.
Simply HOLDing is not enough when we know that most projects will eventually fail.
Even Ripple, which was once the second largest coin by market capitalization, has dropped to number 8. The odds that it returns to its former glory at number 2 are slim to none - and slim just walked out the door.
Assuming the world hasn’t blown up by 2027, 2022’s most popular coins will likely also be a graveyard of failed projects. Picking winners isn’t easy. Remember that the next time you swear to never sell an altcoin. Most won’t make it.
As an aside, I have held bags of plenty of beaten down altcoins. I am far from perfect. This is why I maintain a strategy of 70% long term holds, which is almost entirely Bitcoin and Ethereum with the small remains of past successful trades there as well. I try to keep 15% or less in speculative investments with 15% in cash. That way my suffering is capped.
Either way, this is a lesson for me as well as all of you.
*Shoutout to Twitter user @SenCrypInvest for the chart, providing the data for this intro. You can see the tweet HERE