Everyone gets acquainted with the world of cryptocurrencies through bitcoin. After bitcoin, a large number of alternative currencies like Stellar, Dogecoin, STEEM, Ripple, NEO appeared. Investors are wondering what cryptocurrencies to invest in.
As ICOs proliferate and investors become more active, the appeal of altcoins grows rapidly.
Not everyone will afford to invest in bitcoins due to their high cost. Many people believe bitcoin is too volatile. Its price goes up and down. From this point of view, preference is given to altcoin investment, which can be of great value and bring profit.
In this case, the strategies recommended in this article will prove useful. It is worth noting that mining investment and is different from investing in bitcoins. To understand the difference between investing in bitcoins and altcoins, you should read a chart showing their behavior.
Cryptoinvests prefer Invest in altcoin while it is in the ICO stage.
This ensures the best start and purchase coins at the lowest price. At this stage, coins can only move upwards. You only need to choose the right token, because it can also go down to zero.
Once on the market, the altcoin investment can make a sharp jump. This is a great signal to sell - you can easily get a profit of 100% to 300%.
If there is no sharp jump in the exchange rate - try to get 50% to 100% profit before selling. This strategy works well if you hedge your bets and buy several ICOs.
Don't invest all your money in one ICO. Choose at least several from top cryptocurrency to invest.
You can also avoid ICO mania and find a coin from best cryptocurrency to invest that just hit the market.
In this case, there is a chance to buy the token cheaper than during the ICO.
There are several reasons for the drop in the price of these coins. The previous owners - pre-sale buyers and those who received free coins for promoting the initial offering, dump them on the market at a lower cost.
However, such dumping can distort a company's market capitalization.
The wait-and-see tactic of choosing an altcoin is also effective.
Before investing, it's a good idea to wait and observe the new ICO and its results. You will witness its first rise and correction, as well as be able to analyze its behavior charts and calculate technical indicators.
This strategy is more complicated, but at the same time less risky. Watch the candlestick chart, observe the capitalization levels of other similar cryptocurrencies for comparison.
Whether or not to follow these methods is a personal matter for everyone. It is important to remember that quick profits are not always a good thing. Such trades are usually doomed to failure.