in

Dear newbies, are you looking for a promising coin under $1, or even under $0.1? Don’t!

**EDIT: read the post before you shill your sub-$1-coins, please, why does nobody do this today?**

I always see these posts a lot, but for some reason more in the past few days:

*”what are the best coins under $X?”*

And sure, it looks like that makes sense – Bitcoin (BTC) is super expensive already, while a coin like BitTorrent (BTT) is available for less than one cent! If you buy some now and they become as expensive as Bitcoin you will be rich! Bitcoin also used to be cheap! Right?

Lol, nah, wrong, obviously. The thing is: coin price doesn’t matter. At all. Because it is strongly affected by how many coins are in circulation. There are currently about 18,700,000 BTC in circulation, there will never be more than 21,000,000. But there are 660,000,000,000 BTT at the moment and there will be 990,000,000,000 at some point. The important figure is the market cap, which is

**Market Cap = Circulating Supply X Coin Price**

So, for example, for BTC it would be 49,500 X 18,700,000, about 920 billion USD. So if we imagine BitTorrent becoming just as big as Bitcoin, how much would a single coin be worth? $1.38. So can’t a single BTT be worth thousands of dollars, like BTC is? No, absolutely not. If 1 BTT would be worth 49,500, as 1 BTC currently is, its market cap once all the coins are in circulation would be almost 50,000,000,000,000,000. 50 quadrillion, or 50,000 trillion. The total amount of wealth in the world is about 300 trillion.

**tl;dr:** Coin price is NOT a good indicator how much a coin can still grow. Check the market cap and compare it to other coins to see how much a coin would need to grow to be as big as another coin. [The Coin Perspective](https://thecoinperspective.com) is a great website to make these comparisons. Also remember that you can buy fractions of a coin, like 0.001 BTC and don’t have to buy a whole one.



View Reddit by _martinshkreli_View Source

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

50 Comments

  1. 100%, too many people buy coins like SHIB due to how many you get, and because BTC and ETH are “too expensive”. Hope more people read this post, especially newbies

  2. I’m surprised at the lack of reading comprehension in the comments here. To add emphasis to OPs point:

    ***THE INDIVIDUAL PRICE OF A COIN DOES NOT REFLECT ITS POTENTIAL UPSIDE.***

    1 ADA = $2.20;
    1 DOGE = $0.51

    Just because 1 DOGE is a quarter of the price of 1 ADA, does that mean DOGE has that much room more to grow? No – they have similar market caps of ~$70bn – all things being equal the market values each project about the same.

    1 AAVE = $560, but it’s Mcap is only $7bn – in this market it has more room to grow than either ADA or DOGE.

    Of course this is extremely simplified and doesn’t take into account inflationary tokenomics, use-cases etc, but doing so would make individual coin price even more irrelevant.

    If you must take a back-of-the-napkin view, focus on market cap and leave coin price behind (except for marking personal buy/sell milestones once you understand each coins tokenomics).

  3. Look for

    -Good tech, high security

    -Low market cap(1-10bn or less)

    -Wide exchange listings(supports more possible buyers)

    -Catchy ticker symbol that sounds trendy

    -Low inflation rate, or maximum supply

    -Years in development

    -Recent drops in price to catch the dip

    This isn’t a difinitive list, but its definitely good key factors to look for. Never buy a crypto when its at an all time high, there is a chance it keeps going up, but theres more of a chance that the price will drop sooner than you think.

    Theres other things to look for, like price history, whats trending on social media, etc.

  4. I will hide my spicy opinion in the comments: while not a very good metric, coin price is not completely irrelevant. For very low market cap shitcoins, it seems likely that lower price coins will attract more unexperienced people looking for moonshots than higher price coins. So while it doesn’t matter objectively (and won’t matter for big coins which are mostly held by experienced traders and institutions), it might have a psychological effect for small coins that are mostly bought by people that think small price = cheap.

  5. Honestly, I understand what your saying, but sometimes I just say funk it, let’s see where this goes for fun and throw $20 at a super low crypto. I’ve invested in long established crypto to but the newer ones can be fun to watch …I have nothing better to do.

  6. To be fair you have to say that if BTC reaches just 100k the numbers change again. For this example BTT could hit above 2$. Still far away from thousands but if we compare a coin to the BTC marketcap we also have to keep in mind that BTCs marketcap can change.

  7. You can still make bank off shitcoins?
    If you invest €1000 in any coin and it goes up 10% it doesn’t matter if you own 1 or 100000 coins it’s still 10%
    Chances are shit coins can 10x easier than BTC, that’s why people do it,

  8. Market cap is bunk as well. If you think you could sell all 18,000,000 BTC at the same price, you’re delusional. Realistically that price only applies to <5% of the supply, if more gets sold the price plummets as there is no support

  9. I have lost count of people telling me they are considering or bought a crypto because it was cheap. Even people that I think of as quite smart.

    There’s a huge misconception about how important price is. Without wider context, price is completely meaningless.

  10. Market cap also doesn’t matter because it’s a young space. Market cap means something in the stock market because we understand reasonably well the total market size. Crypto is growing so rapidly that market cap cannot be considered a stable metric. It works for stocks because it serves to compare the value of one company against the value of the entire market. Even then we may not believe the figure to be true (looking at you gme). If you don’t know the value of the entire market then market cap is an arbitrary number, just like coin price. It can help you compare coins or understand popularity but it doesn’t tell you anything about the value of a coin.

  11. The one time this isn’t necessarily true, is brand new coins when early adopting.

    New people shouldn’t be getting into those really, but for people who have been in the space for a while, it can be quite lucrative when you find projects that aren’t scams.

    Every big coin started out as a brand new coin at some point.

  12. I hodl BTT, but never did I think it d be BTC $$. Got in around .002 and if it hits. 25 cents , my gamble paid off. If not, oh well. 100% agree that newbies think every coin is going to be worth 50k… I made a few bucks on DOGE but ran for the hills and threw my gains back into ETH , VET & ADA when it hit .72.

  13. E.g.

    LTO market cap is only $124m at $0.43.

    DOGE market cap is $64B at $0.50.

    One is a viable project with loads of room to grow, one is an overpriced shitcoin joke.

  14. People in the stock market are looking for penny stocks even after years of its existence. I’m not optimistic that people will ever stop caring about the price itself.

  15. I think in a bear market it is fine to buy hella cheap coins like bittorrent for quick profits during the next bull run. Bittorrent was like .0003 and then hit a cent. Obviously right now during a bull run it is not a good idea to buy no name coins like that lol. That is how you lose money. In general every crypto is a risk. There are good projects such as peercoin that never gained traction and it is almost as old as bitcoin. And no one who bought back in 2013 thought dogecoin would go anywhere and some have become accidental millionaires. For a coin it doesn’t need to be JUST a great project, but it also must have really good marketting and luck as well. Look at blockbuster vs netflix lol. Blockbuster was a name brand that no one ever saw its failure coming booooom defeated by netflix that was worth under 10 dollars for almost a decade.

  16. How many posts like these do we have to see everyday? I have seen like 7 posts explaining what market cap is and how it works in the past week or 2. Can the mods just pin basic FAQ so this moon farming stops?

  17. I agree with you but early acces to the meme coins can bring a return. When you start from zero, I think buying cheap coins and reinvesting the small profits into stable coins and long term commitments can really upscale the value of the coins you own. On the other hand, people are stupid and a meme crash will make them think twice before buying cheap crypto so they’ll invest better next time. I bought 15 euros worth of Shiba at 0.000014 price, I’m holding until another zero cut appears and reinvest the profits in Ada, matic or Eth.

  18. Ive bought a little of BTC. Its slow but very safe. Ive bought more of ETH, XRP, ADA, and more because they can have more growth than BTC percentage wise.

    When BTC goes from 55k to 60k, its only a very small percentage in gains but when XRP went from 0,86 to 2, thats more than 100% of your initial investment so if I put in 100 each, BTC only made me 10 (110) while XRP more than doubled my money.

    Ofcourse, if you own an entire bitcoin you made 5k thats nice buf if you had put 55k in a coin that grew in worth 100%, you would’ve had 110k. BTC is just very safe.

  19. Also remember that the current total market capitalization of all cryptos is *only* at about 2.3 trillion USD.

    This means that if the crypto trend continues even the top coins can still grow a lot because the money from other markets will probably spread out into this one over time. (decades)

    Comparison example: only the US stock market alone is market capitalized at 30 trillion, which makes up like 55% of the world’s stock market. (And the stock market is not the only market investment money could migrate into crypto from)

  20. Well yeah… However history has proven time and time again that there are these coins that can increase 20 000% in a couple of months.

    That’s what people are chasing. Whether you like it or not, fundamentals cast aside, Bitcoin can’t really increase by 20 000% in 4 months because the value is just too high.

    Smaller coins below a dollar can however. Because it’s all in the mind of the holder.

    It’s just impossible to try and measure this mess with conventional market logic.

  21. A newbie question, but how/where do you find out a coin’s market cap? I assume its not listed anywhere in whitepapers etc, and you’d find it independently elsewhere, or am I wrong?

    EDIT: Completely missed the tl:dr, the site provided will be useful and a good place to start.

  22. This is great advice not just for cryptos, but for stocks in general as well. Google stocks is over 2k per stock, while Apple is under 200, but looking at the marketcap, google has a smaller marketcap. Just looking at price, Apple looks like a bargain, but thats not exactly the case.

  23. Total newbie here! Thanks for trying to warn me!
    Still trying to understand what’s the best/better wallet to get. Seems like not all wallets support every crypto..
    Anyone have a flowchart to ‘educate’ newbies on the best ‘flow’ to purchasing any crypto?
    Eg, first select crypto, then select waller, then exchange etc (probably totally wrong order here!)

  24. The thing i think alot people make the mistake of is thinking owning full coins is better than fractions. The most important barometer is money invested. Alot of people psychologically feel better owning 20,000 of something rather than let’s says 0.2 BTC but that’s irrelevant in the grand scheme. As most will point out market cap is an indicator of growth potential but I think alot of these principles get overlooked.

    Bonus point I’d like to add is people think paying 500 dollars into a coin that’s worth 1000 per coin is more risky psychologically because the fall to zero in their minds. Psychology cannot be overlooked.

Loading…

0

What do you think?

Dogecoin Millionaire: Goldman Sachs Exec Quits After Making a Fortune From DOGE

Dogecoin Millionaire: Goldman Sachs Exec Quits After Making a Fortune From DOGE

Why Is Gold A Poor Hedge Against Inflation? – Cryptovibes.com – Daily Cryptocurrency and FX News

Why Is Gold A Poor Hedge Against Inflation? – Cryptovibes.com – Daily Cryptocurrency and FX News