Don’t be fooled by Unit Bias! Just because you are buying a larger number of “cheap coins” does not mean you’re getting a good deal.

Unit bias is the concept that buyers are more enticed to buy a whole unit of a given currency instead of a fractional quantity. Many newbies (myself included at one point) hold the irrational view that BTC or ETH are simply too expensive and hence look into “cheaper” coins that they can own more units of. This leads them into make much more riskier investments and buying and hodling a sketchy altcoin with no long-term prospects.

You should be more focused on percentage gains instead. Having 0.1 units of a coin that goes up 1000% is better than having 1000 units of a coin that goes up 1%. Although sub-$1 altcoins are enticing, it’s crucial to evaluate assets on their merits, including their tokenomics, developer team, originality, liquidity, and circulating supply. If you want to speculate, you should be looking at low marketcap coins that you believe in and that have strong fundamentals with high growth potential, not just a cheap price.

Strip unit bias out of the equation and those dirt cheap coins might start to look a lot dirtier than they do cheap. There’s nothing wrong with investing in altcoins, and it’s possible to outperform bitcoin and profit handsomely from doing so. Just don’t make the mistake of confusing price with value.