How to Invest in Altcoins
The cryptocurrency and Altcoin market is growing at a phenomenal pace. So much so, that most people can’t keep up with the developments and the potential earning capacity. In a previous article of ours, Crypto Investing we explain a simple, easy way to invest in crypto’s and altcoins. If you’re still unsure of what an alt coin is, its basically every other cryptocurrency excluding Bitcoin.
The potential to earn a decent amount of money by investing in alt coins has never been greater. With Bitcoin facing some resistance in light of futures trading, escalating transaction costs and slower transaction speeds, its volatility hasn’t quite been what it used to be. So you’ll probably ask yourself “Are altcoins better than Bitcoin?”. Of course we don’t believe Bitcoin is doomed – its just that its pace of growth will possibly become more stable with the result that altcoins will likely be the alternative for those looking to capitalise on the booming crypto market. Lets admit 2017 was an awesome ride for Bitcoin, and it will continue to offer returns, but 2018 may just be the year for altcoins to dominate the volatility spectrum.
So how do you make money from altcoins? Our opinion is to open an account with a reputable cryptocoin exchange (we recommend Binance), deposit some funds, pick a couple altcoins, purchase them and lastly, sit back and let the market take care of the rest.
We’ve tried an experiment and so far we’re happy with the returns. A day before the writing of this article we opened an account with Binance after having read a few Binance reviews and deposited $1365.00 worth of Bitcoin. As soon as the amount reflected we did some homework and picked 10 of the top performing altcoins then evenly spread our funds across them. The reason we did this is to maximise our potential to earn but to minimise our risk. A general rule of thumb in investing is to diversify…not just within a specific asset class but also over a variety of assets. So we diversified by choosing a few altcoins that are still below a dollar, some that are within the $1 to $100 range and then a few of the major altcoins that have a larger market capital share and may also be above $100.
It has been just about 48 hours and, at the time of writing our “portfolio” is sitting at $1537.97.…thats roughly an 12.5% gain in two days. To put this into perspective Bitcoin has roughly taken 7 days at the time of writing to increase 0.19%.
Check out this video on an altcoin investment strategy:
Investing in altcoins for beginners can be a daunting task… the average joe does not know how to determine the best altcoin to buy. As always we would never recommend that you try these investment strategies with funds that you cannot afford to lose but at the same time you’d be silly if you didn’t get involve in some way.
How to find a decent cryptocoin exchange and register:
We opened an account with Binance. Its not one of the biggest cryptocurrency exchanges yet but our experience on Binance has been convenient and the processes are relatively quick and easy. Binance is a chinese cryptocurrency exchange that is relatively new to the market.
In order to use make use of the exchange, you’ll first have to create an account. It’s pretty quick and easy to set up since they don’t require you to provide any verification details. This is so long as you are happy with a 2BTC daily withdrawal limit. If you would like to be able to withdraw more than 2 BTC then you will have to undergo a verification process which then takes you to a withdrawal limit of 100BTC per day.
Once you open your account, you have to fund it. They have a number of funding options available but the most common are to fund your account with Bitcoin and Ethereum. We funded our account with Bitcoin and our funds were verified and available in our trading account within fifteen minutes of creating our account. Once your account has been funded, you can start trading immediately. There are a whole host of currency pairs to trade from since they support most digital currencies. They also have a few ICO listings accompanied by the relevant tokens. You trade by selecting limit or market orders. Our orders were filled almost immediately or at least within 2 – 3 minutes of placing the order.
One of the main benefits of trading with Binance is their wide variety of cryptocurrency pairs and their extremely low transaction fees. Unfortunately they don’t allow fiat currency deposits.
Their user experience is also great as they have two two different screen settings: Basic and Advanced – the advanced screen allows for a more technical analysis of the cryptocurrency pair. They also have an information bar at the top of the screen that provides necessary updates with regard to system upgrades, new ICO listings, New Cryptocurrency Listings and more. The exchange can also accommodate a number of different languages.
Binance is quite proactive when it comes to customer support, while providing customer query ticket numbers they respond quickly via email.
Are cryptocurrency exchanges safe?
Binance is relatively new to the cryptocurrency market but they seem to have won the trust of their users. As with all exchanges, there is always a security risk. For the time being there is two-factor authentication which puts greater confidence in the user. Overall we would rate them a 9 out of 10 for user experience and will definitely continue using them.
(Disclaimer: Trading and Investing can result in excessive losses. We do not provide investment advice as these are the views and opinions of its authors. The reader takes full responsibility for investment decisions they make and in no way or means can the cryptocurrency trader be held responsible for such decisions. Trade and Invest at your own risk)
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