Aug 34 mins read

Madman's Advice: Invest in Smaller Coins for Profit

Bitcoin's market dominance is decreasing, making room for other coins to profit

Madman's Advice: Invest in Smaller Coins for Profit

In the past three months, Bitcoin's dominance in the overall crypto market has been continuously declining, dropping from 67% to 59%. A decrease in Bitcoin's market dominance often signifies the start of a bull market, where there are many opportunities to make money. Looking at the chart of Bitcoin's dominance over the past 8 years, we can see that its market share has been steadily declining since September 2019, which is typically a precursor to a further decrease. Therefore, Madman judges that the money-making effect of Bitcoin will be less than that of other coins in the future. It is recommended to enhance risk appetite and boldly invest in smaller coins, although one must be careful when choosing the target.

Bitcoin Dominance Chart

Regarding smaller coins, Madman reiterates that the current boom in Defi will likely persist for the next few months. There will be several stages to any market's rise, and Defi is currently in the tail end of the first stage. After consolidation, there will be a new wave of opportunities to make money. Madman offers some advice for choosing smaller coins:

  1. Play the new, not the old. New coins are usually easier to pull up, while old coins that have been trapped are difficult to get out of. In this market, new coins have no cost to issue, and there is little charity from anyone to help you get out of the trap.

  2. Trade foreign coins, not domestic ones. This is not a matter of blind worshiping of foreign things but because there are too many scammers in the domestic industry. Although foreign markets are generally better, they are not always the case.

  3. Choose smaller market cap coins that follow popular trends. For example, in the realm of prediction markets, we would rather invest in lower-ranked coins than LINK, which is the top 5 coin, as LINK's imagination has been exhausted. If you want to make 100 times, you must invest in the back-ranking coins or Ethereum to get a higher cost-effectiveness ratio.

  4. You must trade with logic. The current price surge of smaller coins is driven by reasoning, not like the random market surge of 2017. To have a chance in the market, you must be able to spot the logic before anyone else. Madman will help you with this later.

Cryptocurrency Market Cap Chart

Ethereum's transaction fees continue to hit new highs, and Madman has no words for these fees. Spending hundreds of dollars to transfer money is too expensive, and there is still a possibility of failure. Under such high costs, it is difficult for Ethereum to land any applications besides Defi because Defi is profitable enough to withstand such high transaction fees. NFTs have almost no room to exist in this environment. Perhaps when the Ethereum 2.0 era arrives, this situation will change.

Ethereum Transaction Fees Chart

The Time for Small Cryptocurrencies to Bloom

It's an exciting time for small cryptocurrencies to rise and shine. Bitcoin continues to show healthy trends, remaining stable in the high-level box range. Ethereum is recommended for long-term holding and is expected to accelerate its upward trend with its arrival. XRP has bounced back strongly, and there may be a second wave coming.


Even though EOS, LTC, BCH, ETC, and BSV are not highly anticipated, there may be other cryptocurrencies that could surpass them. DASH is not a leader in this race, but XMR is relatively stable and can be held in the medium to long term.


Additionally, new projects in Defi (Decentralized Finance) are worth investing in. However, old cryptocurrencies trying to ride the Defi wave should be sold before it's too late.


Please, note that the article only represents the author's personal opinions and should not be taken as investment advice.

Investment Advice