As I’m new to the game of cryptocurrencies I always thought it would be nice to have 1 million of something. Over the last few days I’m reading a lot of articles, blogs and YT about cryptocurrencies. From my background as designer I might think different than financial experts, therefore please take my points of reference with a grain of salt. DISCLAIMER!! This is not investment advise or I’m being paid to say something about the currencies mentioned in this post. Don’t invest in what you can’t loose.
I’m planning to invest/trade over a longer period of time into cryptocurrencies. My findings so far;
Research, research, research
I mean like really go deep into the cryptocurrency you want to invest/trade into. The steps that I take before I invest in anything;
As many of you I also use https://coinmarketcap.com/ this website is golden as it comes to finding current trades, trends, market caps, opportunities etc.
I am seeing other people recommend https://poloniex.com and https://www.coinigy.com/ in the end it doesn’t matter which tool you use. As long as you are using trusted resources to base your trading options on.
Finding an opportunity to gain quickly
I’m not into the cryptocurrency for the quick win, but a big believer of the underlaying usage of the blockchain technology. And especially I am interested in the practical aspects of a community, such as the example with #ArtByte. A community and coin to support artists, see also my earlier post https://steemit.com/altcoins/@sanb/my-altcoin-predictions-june-2017
For the sake of testing and creating opportunities I have been watching YT about how to spot an opportunity. I have found YT movies by @suppoman and @jerrybanfield interesting content to watch, if I can only bare their pressing yelling tone of voice. Anyway they both seem be big on Steem and promoting the platform, that always a good thing!
Smallest price factor
From my basic understanding, the more you have of a currency, to gain you will have when it stock surges. In that retrospective I wanted to try out a cryptocurrency with 1M units. Go to https://coinmarketcap.com/all/views/all/ then hit PRICE. I started looking for a cryptocurrency that would have a $0,0000x four (4) digits behind the comma. Then I looked at the market cap and how long they have been running their community. Taking circulating supply into account, I ended up with these cryptocurrencies;
_Mooncoin (MOON)
_HTMLCOIN (HTML5)
_Infinitecoin (IFC)
_Mintcoin (MINT)
Now doing the homework
Okay lets focus on these four cryptocurrencies to do more in dept research.
What do they do and offer?
Next thing I do is to visit their websites to learn more about the community. Things that I look for are;
_What do they stand for? Reading the Whitepaper if there is one. Trying to understand the community, core development team and how long have they been working in the community?
_Searching/reading and learning at the https://bitcointalk.org/ forums about the community and finding from other users.
_Looking at their roadmap, if there is any available
_Has there been a previous surge in stock, and what was the reason they have fallen back?
_What is the 24H volume?
By now I think to have a more clear idea of the cryptocurrency and their potential. Is this stock undervalued or overpriced?
Exchanges
Since I am new to the cryptocurrencies, wow, I was blown away by the amount of exchanges. As I am digging deeper and deeper, the more I become aware of the different qualities/reliabilities of the exchanges. If you made up your mind on which currency you want to invest/trade into. Go back to https://coinmarketcap.com and find your currency. Then hit MARKETS. Here you will find a list of exchanges that offer trades in the selected currency.
My advise is to choose exchanges that have a decent trading volume. From my understanding, in general the smaller exchanges seem to be lees reliable.
My guidelines before pulling the trigger
From my research I have set up a few rules before investing/tranding in any currency.
_Research, research, research
_Invest against the mainstream, see the opportunity, buy low, sell high, etc.
_Set targets, how much are you willing to loose? and at what price do you sell?
_Don’t over invest, don’t go crazy on buying more and more. Yes the cryptocurrency looks like a casino, but don’t act like you are in a casino!!
_Store safe, by preference use hardware storage, backup keys, tight security, etc.
Next?
Follow your selected cryptocurrency in e.g. a spreadsheet and know when and where you want to buy and sell.
My Results so far? Come back in 3 weeks!
As again, for me I’m testing out how investing/trading in small cryptocurrencies will work. Please come back in ~3 weeks as I will update you with my findings.
Share your favorite opportunity
I want to learn more, please share your thoughts, ideas and opportunities.
As always, thank you for reading!
Sander
Best of luck
Cheers mate! Same to you, keep it up ;-)
This is awesome, my last post was asking for advice about investing in altcoins. Just bought .03 BTC this morning to move over into an exchange. Do you think that's an alright amount to start off with?
Thank you for asking. Please only invest in what you can loose. Beware of things ahead, many of the altcoins follow the BTC trend. Read more about what will might happen on August 1st (BTC Independence day). I tend to look at what the potential of a community in relation the the value of coin is. Finding the sweet spot is the hardest thing to do.
Thank you for the tip. Pretty interesting stuff, if I understand correctly is going to create another chain with some upgrades and take some power away from all the miners? I'll be reading about this all night.
Yeah, I'm am no expert but reading a lot of stuff on BIP 148 USAF and BIP 149. Also the BTC fees are starting to become a real issue. Another good example of quick gain is BitShares. Started to gain lots attraction in a few days and blew up. You might want to start safe and small and get to know the exchanges, rates, getting used to times-zones (big benefit imo). Let me know what you are up to, keep it up!