I've been asked this almost every day since I started my new journey in crypto...What are the best coins to invest in?
The standard answer is (and always should be).....bitcoin!
It's the standard, it's the grand daddy, it's the big cheese :)
And the more I learned about alt coins and the entire crypto currency business, I saw the huge value in the long term holding of bitcoin. I'm not smart enough to get into the BCH vs BTC debate. Nor am I educated enough to talk to you about forks and how great they can be...
So for me, it's a simple strategy ...Always!
A big chunk of my portfolio will always be bitcoin. It's simple. it makes sense to me and it's the 'brand' that's out there when people think of crypto currency.
However, this is an exciting new frontier. And with that excitement I dove right into the alt coins and tried to learn as much as I could from day one.
And my research into these coins goes like this...
1. Is There Hype and Talk About The Coin - What's on everyone's radar? How did their ICO go? Is there excitement about the tech behind the coin? Again being a relative newbie to this industry I look to others for advice. And if something makes sense to me, I'll dig into it deeper. Some coins make absolute sense to me, others don't...And with the guidance of some experts in the industry, I've made a healthy profit!
2. I Actually Read The White Paper - Scary I know! There is a lot of technical jargon and stuff that flies over my head, but reading the white paper of an alt coin allows me to get 2 major insights into the coin...First is the team behind the coin but also the general game plan / idea behind the coin. This is huge and has a big impact on whether or not I decide to dive into a coin.
3. Research The Coin on CoinMarketCap - I had a guy tell me the other day that Ripple will shoot to over $200 per coin. And that's a fantastic idea until you do a little research on sites like CoinMarketCap. With a max circulation 99,993,093,880 XRP, if each coin was worth $200...Well do the math...If you can! That's a number that's bigger than we can fathom. And I wouldn't know this information unless I did my research into the volume, circulating supply and which exchanges is the coin traded on....And sites like CoinMarketCap give me this info :)
Are these fool proof plans? Nope. Is this financial advice? Absolutely not. It's just my experience as a relative newbie investor in crypto...And so far, it's been a fantastic experience. On green days and even on red days :)
Great article. I use many research techniques but you nailed 3 key starting points: Keep an ear out for market chatter, read the documentation and analyze the charts, volume and other data on CoinMarketCap. I look forward to future articles.
Appreciate that very much. And thanks for the comments!
Thanks for the tips Jon, they are much appreciated. Being very new to this crazy world of Crypto I need all the tips I can get.
For sure Joe, thanks for the comments. Glad you found the post useful.