While Bitcoin is the talk of the town, it wasn’t even close to being the best performing cryptocoin of 2017. Bitcoin increased almost 1400% in 2017. That means if you bought $100 of Bitcoin on Jan 1, 2017, that would be worth $1,400 today. But $100 of Ripple on Jan 1, 2017 would now be worth $47,900 today.
How did other coins fare in 2017? Well, I’m glad you asked. Looking at CoinMarketCap.com which not only has current prices of coins, but also historical prices, I looked up the top 10 largest coins based on their market capitalization on Jan 1, 2017 and checked their price increase over the span of 1 year.
As you can see, if you had put money into any of 2017’s original top ten largest coins, you would’ve seen your investment rise significantly. The average increase in 2017 was 8,935%. Even $100 of the “worst” performing MaidSafeCoin (MAID) would have been $1,100 today. (Interestingly, Bitcoin itself grew only the 9th most). In comparison, if you had invested $100 into Boeing, which was 2017’s best performing stock of the Dow Jones, you would’ve had a paltry $189 today.
Did every altcoin kick butt in 2017? Well, you would have to go to 20th largest coin (based on Jan 1, 2017 market caps) to find a loser. The honor goes to E-dinar Coin (EDR). A $100 investment of EDR would have left you with $2 today, which is pretty much as bad as you can get. A few quick google searches about EDR reveals that it might have been a scam anyways.
Got it. So are you saying I should just invest in the current top ten largest coins and I should expect big bucks? Well, one year of data is small sample size. Let’s see what happened to the top ten largest coins in 2016.
Still a decent amount of success, with an average increase of 121.54% in 2016. But nowhere near 2017’s average of 8,935%. Also, worthy to note that there were two losers in the top ten of 2016 in Peercoin and Nxt.
Alright, I’m on a roll now, let’s look at the top ten of 2015. Now it starts to look a little painful.
The average return for the top ten of 2015 was -34%. So even though Bitcoin had an impressive 53% return, most of the other top coins tanked (I’m looking hard at you, PayCoin!).
A few other interesting observations:
- Stellar was a top ten coin in 2015 and 2016, disappeared for most of 2017, but is now a top coin again in 2018.
- I didn’t realize Ripple had been around for so long as the second largest coin. It dropped a few spots in 2017 but has recently at the end of 2017 returned as the second largest coin.
So back to what to invest in for 2018. I strongly believe in diversification. If there was a mutual fund of the top largest coins, I would probably just buy that fund instead of trying to pick individual coins. Most of my cryptocoin is already in Bitcoin, Ethereum and Litecoin. If you don’t have time to research and delve into the details of which coins to invest in, you could certainly just buy the top 10 coins of 2018 and hold them for a year.
Despite the volatility of cryptocoins, I still believe that there is potential for large increases. Maybe not as much as 2017, but still increase nonetheless.
What do you think of these trends over the past several years?
(Obligatory disclaimer: I am no financial advisor nor investment professional. Only invest what you are willing to lose.)