Avalanche, hype or buy

The topic name says it all, i am with about 7% of my portfolio in crypto. Not a lot of knowledge.
Right now i have BTC and ETH. I have some friends going all in on Avalanche but i would to know all of your opinion about it.

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It’s the fastest growing blockchain. A lot is being built up on it see a good future for avax

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It’s really hard to say with these smart contract platforms which one will win in the end. The network effect is really important for these kinds of projects, and better performance doesn’t always win.

Personally, I do think Avalanche looks better than Solana, Cardano, and Polkadot from a pragmatic standpoint, because it leverages some of the technologies of Ethereum, allowing a lower barrier of entry for new developers.

In the end though, the danger is when Ethereum implements the performance improvements on their roadmap, making a lot of these layer 1 alternatives less attractive.

In short, I like the project from a tech standpoint, but I would not go all-in myself.

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Really depends on your goals and strategies. I prefer BTC and ETH for most of my crypto holdings, and I hold a few altcoins on which I hope to pull those moon-and-beyond gains. These kind of gains imo are not (within weeks or months) to be expected from top 20 coins like AVAX. It already did +3227% YTD on the USD pairing (+929% on BTC pairing which is more important than USD pairing imo). This doesn’t say all ofc, but in my opinion it reduces moon chances significantly.

If you do want to research any coin it might be good to ask yourself some important questions, to which some answers can already be found above. I check at least the following before deciding to ape in an altcoin, although this might be a bit exaggerated for the bigger coins:

  • What is the coin’s usecase?
  • Who is the team? How is their knowledge?
  • How well is the roadmap / whitepaper written? How important and realistic are the goals?
  • Who are the competitors? Why is this coin better than it’s competitors?
  • How much engagement is there on social media?
  • Who owns the coins? What is the ratio owned by the team itself?

If I like the answers I’ll most likely dive in deeper and maybe invest. Really knowing what you purchase makes it a lot easier to decide when to buy, sell or hold.

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