What is wrong in this strategy?

[joey.signorini]

I am completely new to cryptocurrencies. But I think that it is likely that one will sky-rocket in the next years. So, I'm thinking of investing in about 20 different cryptocurrencies, with say 10$ in each, and just wait for months or years. In the worst case, I loose 200$. If a single one increases by 100, I make a benefit of (at least) 800$.

Question 1: is this reasoning valid or am I missing something? Is it possible to buy currencies with only 10$?

Question 2: As I understand, I first have to buy bitcoins, then trade them for other crypto-currencies. Is there a single platform where I can trade anything or do I need to trade on multiple platforms in order to cover the range of altcoins I want (like VRM, XRB, GAME, GNT, etc.)?

Question 3: does it make sense to store them in a paper wallet (I mean, given that I plan on buying about 20 different cryptocurrencies).

Thank you

[patt0]

I think that buying 20 crypto coins is probably to much. Not all coins are suitable for long ter holding in my opinion, and you will most likely lose a lot with that method. There is a hype around crypto right now, and you keep seeing coins pumping, but not all of them will last long. Also as bitcoin gets more reliable, a lot of other coins will probably die, because they wont be able to compete with BTC. I would suggest you to choose 5 crypto coins that are strong at the moment, and have some potencial. Bitcoin and ethereum need to be in those top5 in my opinion and should probably have a bigger investment than the others.

[player514]

I am completely new to cryptocurrencies. But I think that it is likely that one will sky-rocket in the next years. So, I'm thinking of investing in about 20 different cryptocurrencies, with say 10$ in each, and just wait for months or years. In the worst case, I loose 200$. If a single one increases by 100, I make a benefit of (at least) 800$.

Question 1: is this reasoning valid or am I missing something? Is it possible to buy currencies with only 10$?

Question 2: As I understand, I first have to buy bitcoins, then trade them for other crypto-currencies. Is there a single platform where I can trade anything or do I need to trade on multiple platforms in order to cover the range of altcoins I want (like VRM, XRB, GAME, GNT, etc.)?

Question 3: does it make sense to store them in a paper wallet (I mean, given that I plan on buying about 20 different cryptocurrencies).

Thank you

Welcome to these forums. Hopefully the members here will be able to help you out throughout your intro to crypto.

1) Your reasoning is valid, but it's pretty optimistic. You can definitely buy currencies with only 10$ because you don't need to buy crypto in multiples of whole numbers. You can buy fractions of almost all cryptocurrencies, unlike stocks.

2) Generally, you won't be able to find all of your altcoins available on just one exchange. You're probably going to need to hop around multiple exchanges. Make sure to follow the rules on all of these different exchanges.

3) You probably should move the alts off of the exchanges if you're planning on long term holding. Exchanges have been acting a little fishy recently, so be wary of that.

Hopefully these answer your questions. Maybe others can go deeper in detail.

[harizen]

I am completely new to cryptocurrencies. But I think that it is likely that one will sky-rocket in the next years. So, I'm thinking of investing in about 20 different cryptocurrencies, with say 10$ in each, and just wait for months or years. In the worst case, I loose 200$. If a single one increases by 100, I make a benefit of (at least) 800$.

Question 1: is this reasoning valid or am I missing something? Is it possible to buy currencies with only 10$?

Question 2: As I understand, I first have to buy bitcoins, then trade them for other crypto-currencies. Is there a single platform where I can trade anything or do I need to trade on multiple platforms in order to cover the range of altcoins I want (like VRM, XRB, GAME, GNT, etc.)?

Question 3: does it make sense to store them in a paper wallet (I mean, given that I plan on buying about 20 different cryptocurrencies).

Thank you

1. Yes it's possible but take note that in $10, you won't have much that quantity coin that is needed to feel the profit unless it will pumped really hard. Honestly it's for you to test it out and see the result.

2. The coins you have mentioned are currently listed on Bittrex. For your other preferred coins, do some research.

3. If that is an ERC20 token, I will just used MEW instead. If the coin has standalone wallet available at their official site then I will used it too. But in my case, I do regular trades so it's a little bit hassle to me if I will stored it in an offline wallet.

Along the way, Im sure you will gained more knowledge and ideas that will changed your preferences and will make modifications on your current plan. Just move forward on what you think is right and see what will be the result. There is nothing wrong in finding a winning strategy as long as it was properly backed up.

[joey.signorini]

(That is not to prevent others from answering but:) Thank you all for these nice and quick answers!

[ajmapalo22]

Q1: Yes it is possible to buy coins with $10 but you say you are planning to invest in 20 different coins I would suggest better take only at least 5 - 10 coins of your choice so you can maximize your earnings
Q2: of course yes better do some research
Q3: you can use online wallets or put them on the exchanges you prefer so it would be easy for you to check them from time to time especially if you are planning to sell them when price pump reasonably

[pooya87]

Question 1: is this reasoning valid or am I missing something? Is it possible to buy currencies with only 10$?

no it is not valid.
and what you are missing is that you are gambling and calling it an investment. go to a provably dice site, invest $200 and make 20x $10 bets on 2x reward. the result will be the same.

Question 2: As I understand, I first have to buy bitcoins, then trade them for other crypto-currencies. Is there a single platform where I can trade anything or do I need to trade on multiple platforms in order to cover the range of altcoins I want (like VRM, XRB, GAME, GNT, etc.)?

generally yes. you need bitcoin but you can do it with other altcoins too. for example you can buy these coins you named with Doge or LTC too and you can buy Doge and LTC with fiat. but those markets will always be smaller and less liquid compared to bitcoin markets.

Question 3: does it make sense to store them in a paper wallet (I mean, given that I plan on buying about 20 different cryptocurrencies).

yes!
you should keep coins in cold storage. and paper wallet is one option. you can also check out hardware wallets if you are willing to buy one.

[sitnikov]

If you invest in 20 coins, you will have hard time tracking all of them. A lot of time will be lost in checking the prices.

[dado7]

If you invest in 20 coins, you will have hard time tracking all of them. A lot of time will be lost in checking the prices.

He can use Blockfolio for that.

I don't think investing in 20 is necessarily too much. In any case, in this case I would build a portfolio in such a way that I would invest in at least 5 of the top 15 coins (I suggest Ethereum, Neo, Stellar, Tron and Iota, maybe Bitcoin..... then of those that are currently not there but have a great potential Waves and Neblio). I would invest the rest in less know coins. That way you keep a steady profit from top coins (which are unlikely to break, at least in one year time) and possible high profit from less known as they have a possibility to rise more (imagine something as scarce as Bitcoin, currently worth around 0,0001 USD). However you must do a very good research, check out which ones have a good technology, developers and community. My to picks at the moment would be: eBitcoin, Blue, Rebellion, Exrn, Sugarexchange, Viberate, maybe eReal.

I also think that currently is the right time to invest since there was a correction in the market very recently and we can expect it to start rising again after a short period of consolidation. Generally - avoid investing at all time highs.

[Kakmakr]

Most people seem to think that you should diversify <not putting your eggs in one basket> but you can lose more by doing this. Let's say you invest in 10 different Alt coins and 6 of them collapse <odds are high that it might happen> then you would be losing more or break even with the remaining 4 Alt coins.

It all depends on the luck you might have to chose the "performing" Alts in that basket. Like someone else said, it is a gamble. ^hmmmm^

[Destroyeroff98]

A lot of Altcoins are just garbage. They can go to zero in value literally in a couple of hours. For a long time I do not advise you to invest in small crypto-currencies.

[itsmeram]

A lot of Altcoins are just garbage. They can go to zero in value literally in a couple of hours. For a long time I do not advise you to invest in small crypto-currencies.

Yeah well, maybe you do not have enough experience in here. I have been trading, and holding for more than years in here, and let me tell you that investing in altcoins with a small cap, is the most profitable thing that you can do.. You need to make a little research before posting your crap.

[Pursuer]

I think that it is likely that one will sky-rocket in the next years.

many of the altcoins will get pumped throughout next year. and because of these pumps they will skyrocket. but that still doesn't mean you should invest in them, specially not now and then hope they get pumped.

and if you look at their histories you can see they only get pumped in a short time. the small ones during one day (24 hours) and the bigger ones will take a little longer but the same pattern still is true.

[Ebenezar64]

I am completely new to cryptocurrencies. But I think that it is likely that one will sky-rocket in the next years. So, I'm thinking of investing in about 20 different cryptocurrencies, with say 10$ in each, and just wait for months or years. In the worst case, I loose 200$. If a single one increases by 100, I make a benefit of (at least) 800$.

Question 1: is this reasoning valid or am I missing something? Is it possible to buy currencies with only 10$?

Question 2: As I understand, I first have to buy bitcoins, then trade them for other crypto-currencies. Is there a single platform where I can trade anything or do I need to trade on multiple platforms in order to cover the range of altcoins I want (like VRM, XRB, GAME, GNT, etc.)?

Question 3: does it make sense to store them in a paper wallet (I mean, given that I plan on buying about 20 different cryptocurrencies).

Thank you

Youtuber Coin Mastery brings up a good point on this. It depends what your goal is. With 10 dollars in a coin you won't ever make it "rich". You might make a little money but nothing life changing. If all you want to invest is 200 then I would find ONE coin/project I like and go all in, something that has a future and can make 50x or more. That is my thinking. But if you want to "practice" trading crypto, maybe make a few dollars, then your strategy is fine and I wish you luck