After a few weeks of trading on sub-cryptocurrencies I am experiencing a slow growth opposite to trading and investing in the larger 3 top currencies.
Top 3 cryptocurrencies
My top 3 cryptocurrencies are;
_BTC Bitcoin
_ETH Ethereum
_LTC Litecoin
Experimenting with smaller sub-cryptocurrencies
As I am getting into the world of trading on cryptocurrencies I notice that the biggest gains in terms of profitability are found in the top 3 cryptocurrencies. For example I also hold investments in smaller cryptocurrencies such as;
_STRAT Stratis
_XRP Ripple
_DGB DigiByte
From my experience the gain seems to be larger investing in the top 3 cryptocurrencies instead of the smaller ones. Although in absolute numbers I own more of the sub-cryptocurrencies as token, but they tend to fluctuate more up and down and not breaking out, e.g. ETH and LTC did over the last few weeks.
The investments in absolute numbers of tokens for BTC, ETH and LTC were relative low, but the gains are bigger compared to the sub-cryptocurrencies fluctuations. I also notice I need to pay much more attention to the market fluctuation for the sub-cryptocurrencies than for the top 3 cryptocurrencies.
Next moves in the market…
The recents weeks has been crazy on ICO, with Status, Civic, TenX, etc. With these ICOs they tend to take a large take on the BTC, ETH market. There has been many discussions on the feasibility of some of those ICOs. What I am personally looking for is the following;
_Can you describe the protocol in simple words?
_Is the protocol competing or disrupting the market?
_What are the core network effects of the protocol and can they become dominant in the market?
As I am looking from a distance at the current ICO and sub-cryptocurrency market, I have a hard time keeping up with the startups and understanding what they are about. Following my own rules I tend to shift towards investing in the top-3 cryptocurrencies.
What are your guidelines in investing/trading in cryptocurrencies?
Please share your thoughts on investing and trading in (sub) cryptocurrencies.
As always,
Thank you for reading!
Sander