As Bitcoin is way too expensive now, most small time investors may not be looking at Bitcoin. There are some things a new altcoin trader should know which will be highlighted in this article. Why altcoins and not Bitcoin? The potential for gains is massive! With big potential profits come huge risks. A lot of ICOs are scams and only a number of altcoins will succeed. Based on my personal experience in investing in some altcoins, here are some things a newbie altcoin trader should know.
Always do your own research on the background of the altcoin You will see everyone recommending coins that they bought on the internet.
Always do your own research. Here are some things that you should look at before investing in an altcoin: Who is the team developing the tokens? Are they trustworthy and do they have previous experience with other coins? Are the developers actively developing the coin? Can you chat with them regularly? What is the technology behind the coin? Is it blockchain or Tangle or etc.? What features are they bringing in with the coin?
Is it better than the other coins technologically? Are they faster in transaction speed and comes with zero fees? How many coins have been pre-mined and how many are the developers holding? Is it limited or potentially unlimited?
How many of the coins are already in circulation? Is the team marketing the token aggressively? Do they have a lot of bugs? How much are they worth now and how much was it worth before? There are plenty of factors to be taken into account.
They have all increased much more over time and my crypto portfolio is slowly expanding. I prefer to just keep it knowing its potential and one day it grows tenfold or more. A lot of investors have this FOMO fear of missing out and they do panic selling when the price is low or buying when the price is super high.
The best tactic in making gains on altcoins is to basically buy low and sell high. Holding on to your coins may actually be the toughest thing considering the market temptations. Buy low, sell high This is basically the easiest tip yet many people failed to incorporate this.
Whenever you look at a token, always check the price history. Was it a partnership with Microsoft? Or did they introduce something new to cryptocurrencies in general? Buy the dip they say. When people spread FUD fear, uncertainty and doubt in the news, prices of all tokens will naturally drop due to insecurity. When it does, I see it as a huge discount or sale rather than as an ominous thing. If the coin has potential, it can drop in price but I know it will rise up in the future.
Always do your own research rather than just listen to news online. Do your own research! This is because exchanges can be hacked at any time or the owner can go rogue.