There is a very solid argument to be made that investors should just stick with BTC as their main investment vehicle, and don’t bother too much with the alts at all. The reasons behind this strategy are actually very strong and I want to detail them below. Some are facts, some are observations, and some are based on history, but they are all solid reason if you decide to go this route. I’m NOT saying to not trade alts or invest in alts, I have to make this disclaimer as people in the crypto world have become so tribal and think that if you promote BTC, you are against alts, and vice versa. This is simply for those considering the switch from actively trading alts to just a hold strategy for Bitcoin.

Most of the new money is going to go into Bitcoin – Most of the these people you hear about signing up at Coinbase when they announce over 100K new users in a single day are only there to buy Bitcoin. I would say 80% of new money coming into crypto is going right into BTC and it’s going to stay there as most of these people have no interest in trading or learning about other coins. Why is that? Let’s take a look at when they got into a crypto. These people are the ones that waited until BTC was $10K, they aren’t the ones looking to get in on cheap alt coins. This is the bandwagon coming in now.

Institutional money is going mostly into BTC – Most of the institutional money is going to go into BTC because it’s one of the only coins that can handle that sort of influx of money and not throw the coins market into chaos. These alt coins with small to medium market caps simply can’t absorb the kind of money these big institution want to invest without causing the price to go out of control.

When Bitcoin is on a bull run, the alt coins usually lag anyway – BTC has the power to suck the air out of most of the other alt coins. So when BTC is rising fast, it’s very hard to beat it consistently with alt coins, especially over time.

Your alt investments need to outperform Bitcoin – Most people are buying into the market with BTC and cashing out with BTC before either holding that or converting BTC to fiat. So your alts need to outperform BTC. Your alts are in Satoshis, not fiat, so it is harder than it looks to consistently beat out Bitcoin over time, at least based on past history. If you don’t believe me, go back and look at most of the alts for last few months. Compare the alts with the Bitcoin value and most didn’t do as well as you think they did.







Traditional markets prove that holding gives bigger returns over time than trading – Generally, in traditional markets which have a 100 years of history to go by, most people make more over time by just holding an index fund of major stocks than trading. So history is on your side here. It’s a tortoise and the hair type of situation.

Finally, I just want to say these are arguments for why you may want to switch to more of a hold strategy and less of an active trading strategy. This is not to tell you what to do, but use these points when deciding for yourself which suits your style and risk profile the best. Investing isn’t a one size fits all type of thing, so find what works for you.