Many investors are losing bitcoin by investing in other altcoins like binance coin,chain link etc.Small investors are actually giving their bitcoin to project owners in return of tokens and project owners are using those bitcoin to make more bitcoin and reason they are doing this because BTC dominance is 67.00% in crypto market and anyone can easily cash bitcoin.
Do you know that investors are actually putting their bitcoin investment in risk by holding such tokens in hope that their investment will double.
For example- You can buy 8000 tokens in 1 USD when price of bitcoin price is 8000 USD but if bitcoin will rise to 16000 USD then you can buy 16000 tokens in same price. Now all token price does not move according to BTC price,it will drop 20-30% without any sign of drop, but when you will compare with bitcoin you will find that you are in loss.
Many token value rise only in terms of dollar but when you compare with Satoshi then you will find that 1 USD is equal to 11,000 satoshi when price of BTC is 8000 USD and 5,500 when price is 16000 USD.
So your 1 BTC investment will become 0.5 BTC if you have invested in other token even if it’s value in USD is same.
So you have to decide whether you will hold bitcoin or buy more bitcoin or you will use that bitcoin to other tokens because supply of bitcoin is slowly reducing and it’s demand will increase more and price will touch new level very soon.
Above chart showing the top 200 coins performance against Bitcoin
Key points to note before Buying other Coins.
- Circulating supply and Total supply.
- Demand of that token and Future of that project.
- Liquidity of that Token.
- Market Dominance.
Please note that Token supply is controlled by project investors and they can sell tokens anytime without your information, so even if you invest in any token or coins then keep that investment for short period.