- Thousands of cryptos are still tethered to Bitcoin’s price action
- A handful of cryptos have managed to decouple from Bitcoin’s price action and carve a path for themselves
- Cryptos that decouple have far more utility and real-world users than cryptos that are coupled to Bitcoin’s price movements
There are more cryptocurrencies out there than there are fiat currencies, and this brings into question the legitimacy and efficacy of all these cryptos. Many people argue that their favorite crypto is the best crypto out there and that all others are trash, but we’ve got news for you – there’s a good chance you’re wrong.
So, we’re going to show you one surefire way to tell whether your favorite crypto has real utility and is a shining star or if it’s just a piece of crypto junk destined to fade away into nothing.
Get ready to get triggered!
Seriously, if you can’t handle it, you know how to close the tab…
Take a Look at the 7 Day Graph
If you want to know if you’re throwing your money into a bottomless pit in a bid to make a return on investment, then you’re going to want to try this trick. First up, you’re going to open up the Bitcoin 7-day chart – or just head to coinmarketcap and check out the overview of all cryptos by market cap, there’s a nice graph there.
Then, take the 7-day chart of your chosen cryptocurrency and lay it over the top of the Bitcoin chart – you might not even have to in order to spot this. If the two charts look exactly the same, then your crypto stash is tied to Bitcoin’s value and wouldn’t have a leg to stand on if Bitcoin vanished into the night.
It’s Called the Decoupling
Projects that mimic Bitcoin’s price action are said to be coupled up to Bitcoin, and that’s far from a good thing. It means that the project doesn’t really have a utility, or its users haven’t yet discovered the utility of the crypto. All hodlers do is speculate and trade with the crypto based on how Bitcoin is doing. If Bitcoin goes up, more people buy your crypto. If Bitcoin goes down, so too does your crypto. Being coupled up isn’t anything to be proud of.
Projects that have a real use case and purpose are the ones that have decoupled. These trade on their own and forge their own trading patterns. This means that if Bitcoin goes up, these cryptos could do anything, whether it’s rising, falling or trading flat. Bitcoin’s price has no impact whatsoever on these cryptos, and these are the ones you want to line your portfolio with if you’re looking to make it in crypto.
Which Are the Good Ones?
If you flick through the top 20 cryptos by market cap, they virtually all follow the same price pattern as Bitcoin has. Whether it’s ADA, TRS, XLM, EOS, BSV or even XRP, they are all sat in the shadow of Bitcoin with sheeple trading based on Bitcoin’s price movements.
On the other hand, you’ve got proper cryptocurrencies and tokens that stand out, completely changing the game and trading on their own. DigiByte, Reddcoin, ABBC Coin, Terra and Electroneum have all decoupled and are trading based on their own utility. In fact, DigiByte is up more than 1,100% and Reddcoin is up more than 586% since March – something virtually no other cryptocurrency can boast.
So, now you know how to spot whether your crypto is a shitcoin or a shining star!