When all else is equal, small altcoins will give you better returns for the risk you take — even if their bigger competitor seems unstoppable.
It’s all about the bang for your buck, not necessarily some fundamental advantage. Find the fastest horse.
For example, $1 billion into Ethereum will barely budge the price while $1 billion into NXT will send it to the moon (100x at least).
Does that mean you should buy a tiny shitcoin and pray for FOMO?
Some top altcoins have momentum, development, strong networks, and a lot of room to run.
Most small altcoins have none of that.
As long as a project is strong, active, building, growing its community, and its token solves a compelling problem in a way that brings value to the network, you can bet its price will go up — and every dollar into a small project will get you way bigger returns than you’d get with its larger competitor.
During altseason, you might look at the high price of one quality altcoin, then look at the low price of another quality altcoin that does the same thing, and decide the lower price is “cheaper” than the higher price.
It’s not so much about comparing price, which is the result of lots of factors, but market cap, which measures the total worth of the altcoin’s network.
When all else is equal, the smaller market cap is better even if the price is higher. You can buy a fraction of a token.
Yes, you can get into the specifics of circulating supply, emission schedule, treasury protocols, and lots of nuances. I keep these in mind when I evaluate altcoins to recommend to subscribers of my Altcoin Insights research service.