Hello guys. Im pretty new to cryptocurrency. So I have read for about 1 month news and articles about altcoins and bitcoin, mining vs buying crypto, trading and investing, checking each day price of top 10 coins. I do understand that I can not make billions since I should started few years ago. But I really like the idea of crypto and I would like to support / help it by buying / investing some money into altcoins. I dont have enough money to buy bitcoin. Here come questions :
1) Im interested in benefit / result in long term. So I want to make my portfolio low risk. I have read here on forum different opinions like “litecoin is total ***” and that “all altcoins dont have future” and “bubble of altcoins will be destroyed”. As Im pretty newbie on which factors should I first look at? Capitalisation? Creator of coin? Technologie or protocol?
2) Would you suggest to divide my start capital in 10 parts?
3) Is it OK to buy part of bitcoin and not whole coin?
4) Is it good time to buy now coins since almost every coin is dropping in price? Should I wait now or buy after SegWit?
5) Can you please link other forums or websites with helpful info for exploring and learning?
6) And some reliable websites for buying crypto from Europe and online wallets?
7) If I also want to try mining should I start then with coins like litecoin and ripple?
Which alternative is good to programm Coinigy (trading programm) ?
Thanks for reading and good luck all.
Hi kipikipi,
1) For a steady and profitable long term investment with lower risk, diversification is your best bet. The price of individual coins can go up and down but the market cap of cryptocurrency is generally going up, so buying a basket of stable coins like Bitcoin, Ethereum, Litecoin, and so forth can average out the daily fluctuations and potential risks of individual coins, while providing a positive return.
2) Why are you dividing them into 10 parts? A simple strategy would be
Dollar cost averaging where you investing the same but small amount everyday no matter the price goes up or down to again, average out the the daily fluctuations. This is simple and useful if you only want to invest in one coin.
3) Sure. Bitcoin is divisible up to 8 decimal places, but most exchanges has a minimum trade amount, say 0.0005 Bitcoin
4) It depends on your investment horizon. If you plan to hold for at least few years than the price now is low of course. If you want to do swing trades in the short term than a lot of analyses have to be taken into consideration and it also requires skills.
5)
Coindesk is a solid website for both guides and news. Meanwhile, you can also check out our
website or
blog to learn more about index investing.
6) Not sure about this and correct me if I am wrong, but for Europe I believe Bitstamp is the largest and most reliable exchange to trade. I will not recommend using an online wallet, though. A better choice would be desktop wallets or hardware wallets. In one of our
blog post we also explained the difference between hot wallets and cold wallets.
7) Sorry I am not familiar with mining, but not all coins are minable, like Ripple and XEM. You'll need to check that.
8 ) What do you mean? I would rather trade on the exchange, than exporting the trading account to a third party though.
Please free feel to ask me if you still have more questions