Altcoin Investing Question

[jerry0]

If you are investing in altcoins, the first thing you would need is obviously bitcoin since you cannot buy altcoins with usd etc.  If that is the case, aren't you essentially selling your bitcoin at what ever price you are buying altcoins?


I am planning to daytrade a few of these altcoins.  But then the thought came up to me was... well... i need to get the btc first.  And im not talking about the btc that i already have.   Because if i did, that would be taking out the btc you own and trading it for altcoins.  I mean im going to buy bitcoin with USD... then use that bitcoin to buy altcoins.


The thing is since people say bitcoin is the best investment since its the most consistent, aren't you losing out money if you buy altcoins with the bitcoin?  The thing is i would never invest any money from my bank account right now into bitcoin because the price is way too high.  In order for it to double my money, it would need to hit a huge number etc.  My thoughts are with altcoins... well if a coin is 1 dollar, its easier to hit 2 dollars as oppose to bitcoin doubling.  Or say investing in a coin that is 25 cents... and it doubling to 50 cents would seem much easier etc.  But back to my original question, if you are investing in altcoins, are you betting against bitcoin?  Because the thing is im sure almost all of you who who are daytrading or holding altcoins almost always are holding some btc at least right?  Because i had noticed when btc kept going down, it seemed like altcoin prices go down.  But when btc goes up, altcoin prices go up and correlate.  However, it seems thats not how it works now?  Thus btc goes down, alts go up?  And btc goes up, alts go down?  Did the correlation change or is there no correlation anymore?  Because back then i thought altcoin price directly correlated with btc price.


Also when people invest in altcoins, do most people trade their btc that they already own for altcoins?  Or do they usually buy btc with cash and then invest in altcoins?  Because if you are taking out btc that you own to buy altcoins, well if altcoins go down, well it would been better to keep your btc as oppose to converting it to altcoin.  But if you are just buying btc for sole purpose of investing in altcoin, then you really are not investing against bitcoin but basically using bitcoin as a way to buy altcoins right?


Would like if someone can give opinion on this.  My plan is to daytrade altcoins such as buy the lows and then sell at highs.  But its basically more sell higher than i buy it even if i get it at a high price etc.  But i would make sure to lessen selling a coin less than i bought it at as i read that is what people say is the most important thing when investing in btc or altcoins etc.

[Despacito]

You put too much stuff dude. It's easy. For one question, whether people buy bitcoin with cash and invest this btc in altcoins, I can say that I personally follow this way. I first get my bitcoins with fiat Money and then Exchange bitcoin for the altcoins which I'll trade.

The other option is also possible, here you already have bitcoin and you get your altcoin with bitcoins you already have.

Finding a correlation between bitcoin and altcoin price trend is not that accurate really. Totally changes.

[Str1x]

Investing in altcoins is the only way to multiply your bitcoins.

For example if you have 1 bitcoin, you can leave it and just wait till the USDBTC value goes up to gain based on that value.

If you are really good in trading, you invest that 1 bitcoin in multiple altcoins and multiply that 1 bitcoin in 2 bitcoins. This way you gain on the bitcoin multiplier and the USDBTC value.

[Dullmartini]

First off, you don’t necessarily need to buy bitcoin to get altcoins. You can buy tether on the official website and then purchase alts that have a tether pair. There are not many but the basic ones are there (eg ltc, xmr, eth, neo). You can also use eth to buy alts without going through bitcoin. But same issue is that not every coin has an eth pair.

Second, you’re right that you’re essentially betting againt btc if you sell it for an alt. What you’re saying is that the alt will gain more than btc. And that happens ALL the time. Some coins gain way more than btc, that’s why so many people sell their btc. When you look at btc profits, it’s really not that much in terms of %. We’re talking x2 since August roughly. Some alts have gone x5 since then despite a higher btc price. Remember you’re comparing the value of alt vs btc, not alts vs us (unless you only deal with tether).

However, personally I always hold at least 30% crypto portfolio in btc as a hedge against dropping altcoins.

[Erichallig]

bitcoin price up , alt coin price down. that is the rule of the thumb. of  course investing on bitcoin would be more beneficial in the long run and safer than altcoins.  but if you want a risky trading ,you can invest on alt with caution.  by the way you can Check this website. They have a list of currently top 30 forecasted cryptos and the projected returns%.  they offer cryptocurrency and equity forecasts https://roboadvisorcoin.com/crypto-predictions In addition to the forecasts, they provide a daily news https://roboadvisorcoin.com/crypto-news  that offers a focus on the most promising cryptocurrencies and successful forecasts of the last days/weeks

[bamboylee]

What is the difference with bitcoin that you already own and the bitcoin you will buy with cash? Nothing. It is the same bitcoin, from the same blockchain, having the same price. So whether you buy a new one, or use the old bitcoin that you have, it will still purchase the same amount of altcoins.

You just have to know whether your alt is going up in the future or not. If yes, then buy them and sell them when they made you some profit.

I think you are over thinking the wrong point. Instead of contemplating whether to use newly purchased bitcoin or not, you should polish your trading skills, learn how to read graphs, know where to find the right info and join the right group for insight on the right alts to trade.