How to invest in cryptocurrency: Altcoins, tips, strategies and recommendations.

TL;DR: Cryptocurrencies are becoming more and more popular and many people are interested in knowing how to start investing in them and get rich with crypto. The key are the altcoins, alternative currencies to Bitcoin which you can make money from if you know how to invest in them. We also present you INXT, an altcoin gem with potential. If you are interested in what aspects to take into account to succeed in it, read this post!

In recent years cryptocurrencies have gained a lot of popularity, which is normal considering the benefits they bring, including the ability to manage your money and investments without any intermediary. Everyone wants to make money with cryptocurrencies, but how to do it?

Before entering the cryptocurrency market, you will have to do some research and take into account different things. It is also important to consider the risk, even so thanks to the following tips you will be able to be like the crypto investors that have had a lot of profits.

There is not only Bitcoin, what are altcoins?

Altcoins are alternative cryptocurrencies to Bitcoin. They are cryptocurrencies that use a technology called blockchain that allows secure peer-to-peer transactions.There is a ledger or blockchain, in which transactions are permanently and publicly recorded, so exchanges cannot be altered later by anyone. Although some have different rules to attract other users, in general, altcoins work much like the original Bitcoin.

Although only the top 20 are considered the most tradable and make up the majority of the market, as of today, there are more than 5,000 altcoins worldwide. Some of them are Ethereum, Ripple, Tether, INXT or Litecoin.

It is important to consider these different aspects before choosing the altcoin you are going to invest in:

The project behind it.

Many altcoins have a project behind them, for example a company, a startup or a service, among others. It is important to consider this as what differentiates crypto from other currencies in the traditional financial system is that there is no bank or financial entity backing it. The network is the most important thing and it’s what supports crypto.

Even so, given that there are some cryptocurrencies with projects behind them, what less than choosing a cryptocurrency that has a good one as a backing, especially because it is a guarantee in case that it fails and it also gives confidence to the users who own it.

Besides, the fact that it is a project that works ensures that as the company gains more users, more and more people will get to know the crypto and therefore its growth potential will increase.

The community behind

Behind many altcoins there are large communities of users who own them and form groups in social networks to keep up to date with what is happening with their crypto, comment and give opinions on different topics, etc. in networks such as Telegram which is a popular place for crypto traders, and on Twitter, where through hashtags they comment and make trendings about cryptos.

This is very important because in many cases, reading comments and opinions of users gives clues about whether the coin is good or not (who better than someone who has been holding a coin for a long time to know its evolution, its characteristics and whether it is worth it).

Moreover, in many cases, big communities have been able to influence the price of the coin, which is worth considering.

Have a diversified portfolio

As I have been saying, the key to profit with crypto is altcoins, but not just one. As you consolidate an investment, it is important to keep it safe. For this, one of the smartest things you can do is to diversify your portfolio.

Of course, putting money into Bitcoin is the main goal for many new investors but there are altcoins that are catching up fast. Keep in mind that there are coins of different types, so it is good to differentiate them and have an investment in each sector. For example, Bitcoin is a transactional token, while Ethereum is more of a performance coin.

One possibility is to spread the coins across industries in different sectors and with more stability and growth, so make sure you do your research on them before investing.

Also, you can diversify by time and location to decrease risk. When the currency trend is downward, it is time to buy new coins, so it is important to observe trends. Regarding location, if you want to enter a continent, such as Asia, you should mix projects that are gaining traction in Europe, or vice versa. This makes you balance the diversified portfolio in another way, despite external changes.

Low market capitalization

In the cryptocurrency market, market capitalization is calculated by multiplying the total number of coins that have been mined by the price of a single coin at a certain time. It is basically the total value of coins that have been mined.

A high or low market capitalization indicates how a coin is affected by volatility, and it is useful for guessing the value of a coin, among other things.

Low-cap coins are more profitable, although there are also cases where viral news can affect its price and big “whales” can gain a large share of the market. This is not surprising, given that cryptocurrency markets are among the most volatile in the world.

So why invest in them?

Many low market cap altcoins are outperforming BTC and other major currencies. Well, they have the potential to really explode in value and give you great returns, much more than large-cap cryptocurrencies can generate.

So, low market cap altcoins are a better long-term investment.

Know the basic strategies

Making a trading plan is essential for any investor, but it is even more so for those who trade cryptocurrencies because the market is very volatile. Before making any strategy or operation you must take into account the volatility of the currency because although it makes the market attractive it can also make negotiations difficult.

Your trading plan should include risk management tools, as well as a description of the objectives, the cryptocurrencies you will trade and the method used to open and close positions.

There are many strategies that you can perform (apart from Hodling, which is the simplest, where you just wait for time to pass for the price of an altcoin to rise and make a profit); but there are so many that I may dedicate a separate post to it.

Have secure wallets where to keep keys

With cryptocurrencies, your coins are stored in a cryptocurrency wallet to be able to send and receive them. It is important to save your passwords to be able to access it, and to know the types of wallets there are.

My recommendations are StormGain, Coinbase Wallet and Coinmotion, because they are simple to use and secure.

Watch out for crypto scams!

Market volatility is not the only risk to be aware of when investing in cryptocurrencies. There are several scams on the Internet and you should be vigilant not to fall for them. If you fall for a scam, you could lose your investment and put yourself in danger.

Altcoins provide many things that Bitcoin does not, such as solutions to deficiencies, low transaction fees, they provide competition, they are accessible to normal people, their price fluctuates less and they are very likely to have a good evolution.

An altcoin that meets all these characteristics is INXT, which is also a low market cap gem. You can combine it with other altcoins to form your diversified portfolio, it has a thriving project and a great community on the net.