Willy Woo, cryptocurrency analyst, divides altcoins into oscillators and degenerators. While the former has a market like Bitcoin, the latter loses value every year.
Cryptocurrency analyst Willy Woo notes that before investing in an altcoin, it is important to analyze the behavior of its market. The expert indicates that the last 4 years of a cryptocurrency are crucial to determine if its value will remain or decline.
In his Twitter account, Woo classified altcoins into degenerators and oscillators. According to his research, degenerative cryptocurrencies are those that lose value over time. The analyst suggests that these assets may initially seem very promising but eventually fail to overcome periods of bearish markets and lose their price rapidly.
On the other hand, oscillating cryptocurrencies are those whose value remains over time. These altcoins have markets with behaviors that are similar to Bitcoin trading movements. For instance, an oscillating cryptocurrency usually increases its price when Bitcoin rises and decreases when it falls.
For this reason, Woo notes that it is vital for investors to be able to distinguish degenerative from oscillating altcoins. If users want to multiply their profits by betting on the altcoins ecosystem, they must focus their attention on oscillating crypto assets.
Willy Woo stresses that an easy way to know whether or not a cryptocurrency is a degenerator by reviewing the graphics of its market in the last 4 years. The analyst suggests that the behavior of cryptocurrencies toward bearish and bullish Bitcoin markets must be considered to know whether that cryptocurrency can maintain its value.
Degenerative altcoins show graphs that express a downward line over time. This is due to the fact that the price of the cryptocurrency and its volume of transactions have been decreasing over the years. An example that Woo mentions is the cryptocurrency Namecoin, a promising project at the time of its launch, which today has lost all its value.
According to Woo, over 2,000 altcoins have graphics similar to those of Namecoin, proving that degenerative markets are the majority. Likewise, he noted that anchored stablecoins or cryptocurrencies can also be considered long-term degenerative altcoins. This is because they are supported by fiat currencies, such as the US dollar, which depend on economies subject to inflation or monetary devaluation.
The analyst perceives that oscillating altcoins are nothing but a handful. By keeping pace with the profits of Bitcoin or the dollar, their market charts resemble oscillating horizontal lines. If the user compares these graphs with those of Bitcoin, the oscillations of both markets also tend to coincide as they indicate the bullish or bearish periods.
Woo believes that Dogecoin, the currency jokingly created among ecosystem users, is an oscillator. Dogecoin is a market with good liquidity since almost all exchange houses accept it and it is compatible with most wallets. Since cryptocurrencies are monetary instruments, their value is based on how it affects the economic network rather than on how good their technology is.
For this reason, the expert concludes that users should not invest in a cryptocurrency just because it has better technological advances. Instead, it may be useful to review how its market and its users behave to predict whether or not its value will be maintained over time.
By Willmen Blanco