I'm not an expert at TA or market behavior, I don't know too much about how blockchain works. Still, I understand trends and human behavior pretty well and considering my short time in this space I know a lot of coins, what makes them special or redundant and some of the news surrounding them. So I think I'm pretty capable of making good decisions as far as what crypto I bet on. I thought I'd share my strategy, just in case anyone was curious. Though at the moment, it's hard to lose with crypto, I think it's a pretty good strategy.
I am in no way a financial adviser. Hot cofefe is also hot.
"Only invest what you can afford"....or if you can't afford anything, don't invest.
Up until 2 months ago 100% of my crypto was EARNED here at steemit. I did put about $400 USD in recently, just because the market was so low, but that's it. This means I am not freaking out when the price goes don't I never panic sell, and in the end I'll be happy no matter what.
Step 1: Dipping my toes in : BTC
I started off, like most people, with bitcoin. It's important to have some BTC, most people will tell you because it's the safest bet. At this point, I personally feel like diversifying among the top 20 is a safer bet then putting everything into BTC, but there is a chance BTC will hit a million, and you want to have some just in case it 100x's again. It is the coin with the most recognition and the most likely to permeate into all aspects of society. It's also the top of the charts so if it probably isn't the easiest way to win big overall because some other coins have more room to grow. There is a small chance that some other coin could beat BTC some day too, though it's hard to imagine right now.
Step 2: Safe coins / Shopping coins (LTC ETH etc.)
After that I made sure to pick up some coins that were considered safe at the time. ETH and LTC and Dash seemed like the obvious choices. I saved up those to the point where BTC was 50% and these made up the rest. Since then Dash and ETH have still not recovered as well as most of the altcoins have. LTC occasionally shoots up like crazy and then falls back down. LTC has essentially become my "shopping coin", like a real currency, for buying alt-coins on exchanges so i make sure to have some to use when the price shoots up or when something I want is extremely low.
Currently I don't hold ETH or Dash, I've exchanged them for EOS and Neo which I think are just as safe, at least in the short term and have more potential for growth as long as ETH has scaling problems. I think Stellar and Cardano make other good diversifying safe coins, maybe Monero too, being the largest privacy coin.
Step 3: Diversify Part 1 (mid- caps)
This is where I really branched out. I bought $20-$100 in about 20 different coins. Some really paid off, and not always the best. I started with random coins that I knew something about, coins that I heard intelligent people say good things about and which seemed legit: Icon, Substratum, Nano, Wabi, Ethos, Nuls, Walton, and BAT are some I started with. Some hype-coins (arguably) non-scam coins like Verge and Tron are also fun to play with. Just buy low and sell high, and hodl if you think you like a coin (Substratum I really believe in so I won't be selling it). I usaully take some profits and buy another coin if the profits are above 25% comparative to BTC. I also try to know enough about each coin that I buy.
Step 4: Consolidating main holdings (for me: EOS, Neo)
I spent a few months focused entirely on Neo and EOS, trying to get as much as I could before the market really takes off. I was stupid and gambled a lot of my EOS away, but I may still have a chance to get it back at a good price.
Step 5: Time to gamble!
I am gearing up for step 5 which is where I will take a shot at those sick gainzz! Step 5 is where I already have a healthy portfolio that is poised to do very well in the future and I feel comfortable playing around a bit. Once I shop for a bit more litecoin and bitcoin to even out my portfolio a bit after all the diversification, and hoarding Neo, I'm going to play! I'm thinking of putting $100 into a bunch of tiny coins. The only requirement is that they don't look like scams or have a reputation for being a scam.
I will specifically look for coins that have a reputation like Origin Trail or High Performance blockchain but will still choose a few which are dirt dirt dirt cheap, like Oddesy which I would have done well with if I had invested more than $5 or Aigang which is just so tiny but looks like a legit coin despite having 0 hype. If even one youtuber starts talking about these coins it could raise the price. A pump and dump could still leave you with 10x gain or more even after it dumps the first time. Look at Dentacoin. I'll do most of my trading at Kucoin because it's nice to get things before they hit Binance. I may also join Ether Delta.
Step 6: Seeking Equalibrium
I play with these numbers a bit but this is the overall rough equilibrium I am trying to maintain.
25% Steem
15% Neo
15% EOS
10% BTC
5% LTC
10% mid-caps
20% small-caps
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