Can you get rich by buying “alt coins”? Or is this entire cryptocurrency thing a big scam. Should we be investing in crypto or is this just a big fad that’s more less just…over?

Well, if you’re a red-blooded human being that relies on money to get by in the modern world, then this probably the biggest question you have now… “Can alt coins make you rich?”.

Ok, maybe it’s not. But to me, it’s at the top of the list, and looking back at history, well….how could it not be?

Would you have invested in Bitcoin when it first came out knowing what you know today? Of course, but most people didn’t because it was too risky.

Well, enter “alt coins”. This is where you (imo) have a chance at hitting the “next Bitcoin”.

Of course, having a shot a huge gains means there is a lot of risk at play. You can’t have it both ways.

You didn’t buy Bitcoin in 2015 because you thought it was too risky. It definitely seemed that way didn’t it?

Well that’s kind of what I see with alt coins.

Now if you’re someone who isn’t all that familiar with cryptocurrency and don’t really understand alt coins all that well you may not discern exactly what we’re talking about here.

To break it down in short. During Bitcoins last couple of bull runs, alt coins take off, and because they have smaller market caps than Bitcoin there are more gains to be made, albeit after a bull run, they are more likely to drop off even further than Bitcoin, and also have less of a chance at sticking around.

Let’s look at some examples, that’s the easiest way to grasp exactly what we’re dealing with.

Here’s Litecoin, which is one of the “OGs” of the alt coins available today. This coin has been around since the early days.

Here’s the chart:

So just look at the ridiculous spikes that happened during the bull runs. Yes, there was a massive selloff after each bull run and now the price is way down from its all-time-high (ATH).

And to me, the question I’m asking myself is if and when we will see another crypto bull-run. If we do and history repeats itself, then we have a chance to get silly rich from buying alt coins.

That’s just the simple truth. And this is why I love looking back at charts like this, it isn’t some “might have” situation. It’s written in history that if you invested early and sold at the top, you’d have made a killing.

And this goes with a good percentage of them, not just Litecoin. During bull runs they all go crazy then fall off of a cliff, even the garbage ones, which to be honest is most of them.

So at the end of the day, I’m not talking about their use case, I’m strictly talking about the value in terms of United States Dollars (USD) and how we can virtually use them to make money.

Now that being said, let’s get a couple of things out of the way here. None of what I’m saying is financial advice, you need to do your own due diligence, especially with highly speculative assets like cryptocurrency.

But the next thing I want to mention is that if you play your cards right (and alt coins make a comeback), then this means a couple of things. One-you have to buy low, and two-you need to actually sell and take profits towards the top.

If you don’t take profits while things are going off, then even if you pick a long-term winner, you’re not making the type of insane gains you could make if you sell.

There could be some crazy situation where there isn’t a massive selloff after a bull run, but so far that isn’t reality. Again, we’re just looking at if history repeats itself here.

In that situation it means unfortunately other people are going to lose money (they are buying high).

Can Alt Coins Really Make You Rich?

Ok, more charts.

Let’s look at a couple more examples. This will give us a clearer picture of what we’re looking at. And let’s look at a few different types of crypto tokens-a layer 1, a meme coin, and an ERC-20 oracle token.

So we’re looking at SOL as a layer 1, DOGE as a meme coin (also technically a layer 1), and LINK is the oracle token.

SOL:

DOGE:

LINK:

Ok, so now after looking at a few of these we get a good idea what can happen. Bottom line is to buy low and take profits along the way, even if you think you have a long-term winner, it doesn’t make any sense to not take profits (not financial advice).

And one more example we need to talk about if we’re going to talk about the risks involved in alt coin investing, and that’s the collapse of Terra LUNA.

Ironically enough, I had even mentioned LUNA’s success in another article about this because it was a prime example of hitting big on an investment.

Long story short, LUNA crashed in May of this year after its stable coin TerraUSD (UST) lost it’s peg.

In other words, it was supposed to be a stable coin backed 1:1 with the USD. Well, it wasn’t so stable after all.

When it fell LUNA went straight down with it.

And after more than 100xing in a year, it virtually went to zero.

So in other words…if you invested 10k in LUNA before the bull run it would have made you a millionaire!!!

Then…after its collapse which basically took days…that million dollars would be worth like…10 bucks.

Completely insane.

I’m not even showing a chart for LUNA because it virtually went off the charts. Again, just complete lunacy and also trajic imo for the people that were “holding long term”.

Understand, these are speculative assets and anything can happen.

Will Another Crypto Bull Run Happen?

I mean this is the million-dollar question. Will there be another bull run where alt coins basically go completely nuts? If the answer is yes, then all of us theoretically should be putting every dollar we have into crypto.

Instead of buying some cool toy to play with, buy crypto instead…instead of buying that nice pair of pants, buy crypto instead…instead of living in a nice house…live in a box and buy crypto instead. LOL

Okay but seriously, while there is risk involved, there is also a ton of potential.

Now there are definitely questions about Bitcoin’s future in terms of mainstream adoption and its overall use case.

There are questions about future legislation within crypto overall that could change things on a massive scale, but the truth is, there has always been these questions and that’s why they are speculative assets that fall under a high risk/high reward category.

Even if you’re long-term bullish on crypto, I don’t think there is any way you could consider it anything less. At the end of the day though, you’re always playing odds.

In my last recent article, I spoke about whether Bitcoin had bottomed. I mean it could actually be more/less completely dead. There is always that possibility, but personally I think the 4-year cycle history has a good chance of repeating itself and if that’s the case, we could be close to a bottom (unless we see a 2008 like market crash).

So for me, this puts out the ideal buying range somewhere between 10-15k for Bitcoin but with no hurry as I have no expectations of anything too bullish anytime soon. 2024-2025 is what I’m personally playing my hand for.

I also think it’s key to understand the fact that a couple of extremes could happen, and that you could 100x or money, or you could lose it all. You’ll likely not do either of these but just saying…

That’s what you’re dealing with and why we need to calculate risk and allocate as a portion of your portfolio without it making or breaking you.

Obviously, this is up to the individual and what their risk levels are. What are your risk levels? Do you think it’s a good time to buy some alt coins? Is it too risky? Can they actually make you rich? Is crypto dead? Let me know in the comments below!