How To Invest In Altcoins: A Quick And Updated Guide For Beginners
Are you planning on investing in Altcoins? If yes, then we are here to help you out. After reading this article, you will get the idea of about the best altcoins to invest in 2020 and how to invest in altcoins. So the first question is, what is Altcoin? Altcoin, alternative coins are the cryptocurrencies other than Bitcoin.
As you already know that Bitcoin is the first cryptocurrency which came into existence. But now there are plenty of cryptocurrencies other than Bitcoin in the market that can be used to earn profits through trading or Hodling. Let’s know more about Altcoins and how to invest in altcoins in this guide.
What are the Best Altcoins to Invest in 2020?
Investing in Altcoins or Bitcoin is not a game of kids. You would have to learn as well as practice various ways and tactics to be successful in your investment. One wrong move and you could lose all your investment once for all. You can start with researching a little about various altcoins, the motive behind its creation, the underlying technologies, its functionality and everything else.
Altcoins are the cryptocurrencies other than Bitcoin, and there are currently more than a thousand altcoins in the market. This brings up the question which Altcoin can provide you with good profits. To understand this, you must read the article entirely.
Now that you are already aware of what are altcoins, you need to know the clear difference between large-cap altcoins, mid-cap altcoins and small-cap altcoins. To understand this, you need to know what market capitalization refers to in cryptocurrency. The market cap of the cryptocurrency is one of the various ways to measure the value of a security.
Bitcoin has the highest market capitalization, which is why it is considered as the leading cryptocurrency. After Bitcoin, Ethereum has the second-highest market cap and is regarded as the most valuable Altcoin. So, if you are going to invest in cryptocurrencies, the smart thing would be to invest your money in the top 50 altcoins. You can check the market cap of various altcoins on coinmarketcap.com and find out the top Altcoin to invest in 2020 by its market capitalization. The larger the market cap of the Altcoin, the less would be the risk involved. However, altcoins with mid-cap have more potential for growth. In our opinion, altcoins such as Ethereum, Ripple, EOS, Chainlink, BAT, OmiseGo, Ontology are worth considering.
Three Steps of How to Invest in Altcoins
Once you decide what Altcoins to invest in 2020, you can start with the remaining procedure that is purchasing, keeping and the practices to earn profits. If you’ve ever invested in Bitcoin, this you would know already.
Step 1: You need to have an account in an exchange in order to purchase, Bitcoins and any other cryptocurrency. Other than crypto exchanges you can buy altcoins from brokers or direct sellers. There are websites like LocalBitcoins that connects you directly with the sellers online. Given below are some of the exchange that you can trust for purchasing, selling or trading cryptocurrencies.
Top Altcoins exchanges you can trust.
Step 2: So, now you have an account in crypto exchange, and you are ready to purchase your Altcoin. Just stop there. There is still more work to do before you go on and make your purchase. Have you decided what you will do with those altcoins or how would you make with then? If not yet, then when. Research about the various ways to earn profit from cryptocurrency. Some of which you already know like day trading and hodling. Whether you are planning to trade on altcoins or considering them as long term investment, you need to clear your hands at chart reading, technical analysis and other such practices so that you could make profits at the time the prices go high and before the drops.
Step 3: At last, you must have a crypto wallet to store all your cryptocurrencies, including Bitcoins or Altcoins.
It is not safe to keep your cryptocurrencies in your exchange account because of the security breaches in exchanges. To keep your altcoins safe, you must have total control over them, just so no one can get access to it. The best way to prevent your altcoins from hackers and phishing attacks is by keeping them offline or in cold storages. You can purchase hardware wallets such as Ledger Nano S, Ledger Nano X, Trezor and KeepKey easily from the market.
Conclusion:The thought of Investing in Altcoins can shower your mind with plenty of other questions like how to make money with altcoins, how to buy altcoins, and what are the best Altcoin to invest in 2020. Well, if you are seriously considering to invest in altcoins, you must spend your time researching first. In this article, we’ve provided you with the procedure of how to invest in altcoins in a nutshell. If you are willing to know more on the altcoins, read our detailed guides on various topics such as what’s the difference between Bitcoin and altcoins, what factors you should consider while looking out for the best cryptocurrency and many more. Also, there are various pump and dump schemes ongoing in the crypto market which you need to be aware of. Don’t fall a victim to such schemes by making a split-second decision and stay away from shady projects.
Articles You May Also Read
- Bitcoin vs Altcoins: Which will generate a higher ROI on your investment
- Beginners Guide to Best Altcoins to Invest for Indians in 2020
- Is It Possible To Buy Altcoins In India With Google Pay, Paytm and Amazon Pay
About The Author
JaveriaJaveria is into the crypto world ever since she heard about it and is pursuing her interest through cryptoknowmics. She is a sensational poet, technical writer and content strategist. Not to mention that she can go crazy when it comes to vampires and Wonder woman.
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