Before diving in, you need to be aware of the fact that your cryptocurrency portfolio structure will largely depend on the type of investment that you are after. Are you in it for a short-term gain? Or are you placing long-term bets on the industry?
Investing in cryptocurrency in the short-term is extremely risky due to the wild price fluctuations and you if that’s what you want to do then you should focus more on TA (Technical Analysis), rather than the fundamentals of the coins you’re investing in.
On the other hand, if you are playing the long-term then you need to pay close attention to the fundamental value of the cryptocurrencies you are investing in and you need to make sure that you have a well-diversified portfolio.
Prior to 2015, there weren’t really any legitimate cryptocurrency investment alternatives to Bitcoin. However, that has radically changed as the cryptocurrency space continued gaining momentum. Today there are thousands of so-called “altcoins”, which are alternatives to cryptocurrency.
These coins can be quickly found on platforms like CoinMarketCap, which displays the largest cryptocurrencies by market capitalization and also lets investors check cryptocurrency prices.
With that in mind, let’s now explore what types of cryptocurrencies there are, which ones are the best to invest in, and how to properly diversify a crypto portfolio.
Depending on how much time you can devote to controlling your assets. If you have enough time to trade short-term positions, this will allow you to make a profit by monitoring the market and the behavior of coins from your portfolio. With a lack of time for constant monitoring of the market, a long-term position is needed, and only very serious coins for investment.
