Investing in bitcoins and altcoins

Participants will receive ready algorithms of actions that allow them to earn good money. Experienced traders offer analysis of successful cases, help to choose exchange for manual and automated trading, give advice on forming cryptoportfolio investment, risk diversification.

For newcomers to the crypto industry, the question of investing usually immediately boils down to bitcoin. Indeed, it is the most well-known blockchain project and the largest cryptocurrency by market capitalization.

However, there are thousands of other cryptocurrencies (altcoins). Some altcoins have their own blockchain, some use an existing network (for example, Binance Smart Chain or Ethereum). Each project has an idea behind it, and each has its own potential risks and rewards.

Whether to invest only in BTC or in several crypto-assets is up to you. Some prefer to stick to BTC, some prefer to diversify their savings with altcoins.

On the one hand, asset diversification removes the risks of investing in only one project. If you have several assets in your portfolio and one of them becomes unprofitable, you won’t lose all your money. On the other hand, investing in altcoins can be risky, and there are plenty of scam projects among them. That is why it is very important to do your own research before making any risky decisions.

Trading or investing?
When choosing which assets to buy, you need to consider whether you are trading or investing. It’s easy to confuse these activities, but there is a difference.

Investing means choosing assets that you are confident in and plan to hold for a long time. This strategy requires less time and usually involves less risk.

In turn, trading is aimed at short-term or medium-term profits through regular buying and selling. To become a good trader you need more time and experience. Traders need to develop more sophisticated strategies, spend more time analyzing markets and trading platforms, and manage more risk. It is also necessary to take into account the money spent on trading and transaction fees.

Remember: cryptocurrency markets are sometimes more volatile than traditional markets. And even though traders need volatility to make profits, high volatility still carries significant risk.

The easiest and safest option for beginners is definitely investing. Investors usually operate for years, so short-term price changes are not as important. The decision to invest is based more on the fundamental characteristics of the coin (how reliable the project is and how likely it is to be successful in the long run).

Some prefer to invest and not worry about short-term fluctuations. Some trade to maximize profits. Some do both at the same time. It all depends on your strategy, profile and risk appetite.

The decision is yours, but you should never invest or trade more than you can afford to lose.