If you wish to acquire cryptocurrencies, Bitcoin remains the top choice for any portfolio– although it should never be the only asset. As with any investment category, the best way to invest in cryptocurrency is to spread your risk across the top digital coins. In any well-balanced crypto-portfolio, you should have a combination of these popular coins:
A good portfolio-building strategy is to hold a combination of top ten coins in terms of market value. Do your own research on those coins, and then determine if you agree with their vision.
Recently there has been a growing prioritization over user privacy, so coins like Dash, Monero, and Zcash has experienced rapidly growing adoption rates.
Some coins such as Ethereum and Ethereum Classic focus on enabling smart contracts, while others support scaling payments, such as Litecoin and Dash. In addition, coins like Ripple, Nem or Bitshares are less open, more centralized, and seem to violate the initial purpose of Bitcoin and cryptocurrencies, but are nevertheless attractive coins in the eyes of many investors.
Cryptocurrency markets are unpredictable yet irresistibly attractive as you can either win a great deal of money or lose an equivalent amount in a short period of time. New coins are fabricated virtually every single day while other existing coins disappear without a trace.
If you are planning to invest in altcoins, here are some tell-tale signs that help you distinguish the good from the bad. Good coins have a transparent technical vision, an active development team, and a vibrant, passionate community. Bad coins are opaque, promote blurry technical advantages, don’t discuss how to reach them, and have communities which are mostly concerned with investment returns. Maybe the worst offenders are those that utilize multi-level marketing systems or promise to be the next Bitcoin–be wary of these scammers!
Conclusion: Simply Diversify
As with any type of financial investment, the best way to invest in cryptocurrency is to diversify your investments and never put too many eggs in many basket. The technology behind these coins have the potential to disrupt many industries, so do your own research, get a feel for which projects have the most promise, then invest for the long term as you see fit. Be prepared to hold on to coins for the long haul, and through market ups and downs. Cryptocurrency investing may be profitable but it will certainly test your emotions and guts, so good luck to you!