Ok, now you've made the big step and purchased some cryptocurrencies. Congratulations, you have beaten over 98% of the population into the space. You have made a great advance toward preparing for the future financial landscape that others will have to rush through like jumping through a glass pane.
So, do we just continue to acquire more crypto coins on a regular basis, or do we try to speculate on some of the smaller coins that will be a larger part of the cryptocurrency space in the upcoming years. That is a difficult decision. If you choose to speculate and you do it wisely, there is certainly a chance that you find the next ethereum or perhaps even the next bitcoin. If you are fortunate to pull that off, gains in excess of ten to a hundred times your initial investment or perhaps even more are certainly possible. Perhaps you decide to invest a small portion of your cryptocurrency in some of these smaller marketshare coins.
Well, if you decide to do this, the first thing you need to do is to familiarize yourself as much as possible with these other smaller market capitalization "altcoins." There are over 700 of them and many of them will survive and thrive in the years to come, making those who discovered them early very, very proud of themselves and richly rewarding their pocketbook. I would recommend that you start with coinmarketcap ( https://coinmarketcap.com/)which has links to all of the coins and much wonderful information about each including links to the altcoin's official website where you can investigate further.
Once you decide that you would like to try to invest in some of these other altcoins, you then need to open an account at one of the exchange services. Not all exchanges trade all coins so you may need to open accounts at a couple of them to have a nice selection. A few of them are Poloniex, Bittrex, and Bluetrade. They operate much like an online stock exchange. Poloniex even has margin trading and a very interesting option where you can function as the bank and loan margin traders your bitcoins and earn a steady stream of interest at a pretty high rate actually.
Some things to consider when deciding to trade your cryptocurrencies. First, there are transaction fees to move your currencies from place to place such as from your wallet or coinbase to the exchange and back. These fees are usually fairly nominal in relation to the amount you are moving, but need to be considered. Second, there are fees associated with the trade, usually in the range of 0.15 - 0.25%. Again, not a huge hit, but something to be considered. Finally, you have to be careful and watch and adjust your price in the transaction window to make sure that you get a good price because the exchange want a transaction so they will just fill in a price that generates a commission quickly and not necessarily get you the best price.
Most of the exchanges offer charting which gives you information about directional price trends of the cryptocurrencies just like a stock exchange, so familiarizing yourself with these charts is a very helpful tool. Within those charts there are helpful metrics like the RSI, MACD, stochastics, and trailing averages. You should try to learn to read these tools. They do give some added information to the trader.
Good luck you all of you and happy trading. As I stated initially in part 1 of the series titled "Getting Started" (link below), if you don't want to trade you could just buy cryptocurrencies in your coinbase account and watch the value grow faster than anything you have ever invested in. Trading is not for everyone.
There will be a final part to the series soon. Please follow so that you don't miss out and get the comprehensive guide. Please resteem so that others can have a chance to see this guide as well.
Part 1 "Getting Started" https://steemit.com/cryptocurrency/@dantethegreat/a-guide-to-investing-in-cryptocurrencies-part-1
It's hard not to get attached to the coins, but if you can take emotion out of it, you are better off.
There should never be emotion in any type of investing, only research, and concentration. "Never fall in love with an asset, they are just vehicles for you to make money until you find a shinier vehicle," I always say.
There are so many alt coins and it is so hard to not look/research about them all. I just want to buy every single coin because they all seem so interesting
I agree with you. They are all trying to find their own niche. I love to research them all and invest a small amount in many of them that I like and track the rest to see if any break out.
That's what I'm doing right now but there are just so many different interesting coins. I want to keep it down to just 3/4 alts too so narrowing it down is difficult
Hey, congratulations. You are a champion tonight!
Haha thanks! Was a great game and great way to end the season
Nice one.....somehow i dont believe in reading charts for crypto......i prefer the buy the rumour and sell the news approach no matter what the chart says.
I think that you are right that charts are less significant in the crypto space than in the stock market. But to me, it's just more information to process. In my opinion, the more information that you have, the better decision you make. Also, I believe that istitutions are coming , if they aren't here already. They use algorithms in their trading that the charts are helpful with.
I agree. When was the last time the news got anything right. Lol
"Fake News" is more accurate. I wish I had coined that one!
Yes it seems like everything is fake these days. And yes whoever came up with that is rich I am sure.
Wasn't it President Trump, and yes, if so, he is RICH.
All political folks are rich and corrected as a snake! It's so sad but a true statement.
Lol
:)
Iconomi will be out soon which will allow you to invest in baskets of currencies. Checkout my review here: https://steemit.com/cryptocurrency/@wolfofcrypto/iconomi-the-sleeping-giant
That is very interesting. I may make my own fund there. I've had a lot of friends over the years ask me to manage their money for them. I've often thought about opening a mutual fund. Thanks for letting me know about it.
That is very interesting. I have had many friends ask me to manage their money for them even though I am a full time physician. I have always had an interest and a knack for it. I have often thought of opening my own mutual fund. I may open one there. I guess I would have to do some research on it because the storage of people's assets at a centralized location is sort of what this is NOT about.
They had to go centralized to launch this quick otherwise they would be twidling their thumbs like melonport waiting for ethereum to mature.
That is understandable.