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December 11, 2013, 04:03:40 AM |
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The number of coins doesn't really matter though you may want to pay attention to the frequency with which a given cryptocurrency is traded. You don't want to buy too much of a cryptocurrency which has historically had very low volume even if the price seems pretty good -- this is the only way of liquidating a large number of certain cryptocurrencies in a hurry, so it isn't really a deal. For BitBar, 100 bars hitting the market at one price is, effectively, a wall that probably won't be breached so you'd want to stay well below that with any purchases you make. For something like ColossusCoin, a wall would be many orders of magnitude larger.
Just be careful if you're investing in a lesser known altcoin and don't invest too much money until you get a feel for how difficult it is to sell. Focus on the number of litecoins or bitcoins (or fraction thereof) that your investment (and the investments of other traders) represents. Some cryptocurrencies like ColossusCoin may require you to wait for some time if you want to sell at the going rate because there is such a large number of sell orders which will take precedence over yours -- by the time those have sold, the market may have moved and it may no longer be possible to get that same rate (well, that probably wouldn't have been the case today but that is beside the point).
All the Best!
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