If you’re thinking of trading or investing, you should never trade or invest more than you can afford or are willing to lose, that’s my no1 tip!
Although Bitcoin is currently the crypto market cap leader, that doesn’t mean it offers investors a higher roi, nor does it mean it will always be top. At present Ethereum is climbing at a rapid rate and closing in on the no1 spot, however, there’s nothing stopping any other alt coin from claiming the top spot in the future. Who's the the top spot may be taken by an alt that doesn't yet exist!
If you’re to the world of crypto currencies and looking to get hold of bitcoin, a good place to start would be www.localbitcoins.com. Once you have purchased bitcoin, the choice to hold or invest is your own.
If you research other alts and choose to exhange your bitcoin, visit www.shapeshift.io where you will be able to exchange your btc for alts, alternatively, register at an exchange like www.poloniex.com or www.bittrex.com. If signing up to one of the exchanges, I always recommend activating 2 factor authentication (2FA) security setting, for additional account protection.
I always do my own research before investing in any cryptocurrency, avoiding any hype or current trends.
If I follow trend on a coin that's up 50% today and it drops 50% tomorrow, I would be at a loss!
My preferred method is to choose an alt that’s in the red on exchanges, hoping I caught it at the bottom before it rises and hold.
Spreading the risk by investing a small amount into multiple cryptos is something I also like to do, as I don’t like to put all my eggs in one basket. I’ve lost money in the past by putting all my eggs in one basket, I learnt the hard way! Spreading the risk helps balance my figures, as when the price of some alts go down, others go up! The more alts I have, the greater the chance of me holding onethat gives me a 1000% roi, anything is possible in the world of crypto!
Looking at the figure below, you can see the growth these alts have had in the last 12 months, giving their holders a great roi.
Bitcoin has risen a huge 470%, although Dash towers over btc with a staggering 2800% growth in the last 12 months. I understand that Bitcoin is having scaling issues and it’s price affected, however, scaling issue aside, I still don’t believe Bitcoin would have outperformed Eth or Dash.
Prices of alts 12 months ago, June 12th 2016* Price @ June 11th 2017* ROI (12 Mnths)^
Bitcoin - $627 Btc - $2951 470%
Litecoin - $5 Ltc - $32 640%
Ethereum - $14 Eth - $348 2485%
Dash - $7 Dash - $196 2800%
*Prices taken from coinmarketcap.com
^ Approx %
The figures above show Bitcoin as the least performing and giving their holders the lowest roi, therefore, I class the alts as winners! Once Bitcoin’s scaling issue is resolved and the beast released, which alts, if any, will yield a greater roi for their holders than Btc? That’s the golden question!
Research, research and more research is key!
Disclaimer: I am not a financial advisor, therefore I am not advising anyone to purchase any lbry or other alts. I suggest you do your own research and come to your own conclusions. You accept full responsibility and liability for any purchases you make.