In the last two months there has been an influx of new investors as we saw bitcoin catch more media attention. The altcoin investing community grew from 7,000 members in November 2017 to over 15,000 members through December 2017 as this was the result of new investors wanting to know more about cryptocurrency.
The most common question that would arise from the newbies would be: How do I start and where should I put my money in? Since Altcoin Investing now has a platform to share news and articles, I believe this article is way past its due date.
Here are two strategies of how I would invest my first $1,000.00 into cryptocurrency as a newcomer:
1) Start by signing up to an exchange platform that allows you to buy cryptocurrency with a credit/debit card. Here are three of the most popular ones:
*NOTE: You will have to send your bitcoin from one of those exchanges to an exchange that trades altcoins such as Bittrex/Binance/BitFinex.
2) Once I am signed up and fully verified, I would put my $1,000 into bitcoin in order to be able to buy altcoins. 30% of the $1,000 will stay in bitcoin (30% = $300).
3) I would spread the remaining 70% ($700) into altcoins which have established projects for holding long term:
a. $200 — ChainLink(LINK)
b. $200 — ICON (ICX)
c. $200 — ENIGMA (ENG)
d. $100 — AELF (ELF)
The prices of all these four coins are currently all under ($100) with each of them having a solid project. I would be looking to hold these coins for over three months.
This is a riskier approach by putting all my eggs in one basket. This means putting the whole $1,000 in one coin then taking out my initial investment and putting it into something else once I have made some profits. Here is a breakdown of this strategy:
1) Put my money in a coin that has a solid project and is less than $50. One of the above mentioned coins in strategy one could work.
2) Let the $1,000 sit in that coin until I double my investment, in this case it would be until my $1,000 investment is now worth $2,000.
3) Cash out half of my initial investment of $1,000/ the profits I made and invest it into another coin that is less than $50.
*Note that I do not cash out my whole portfolio but only HALF.
4) Keep repeating this step over an extended period of time.
This strategy could take longer and is riskier than strategy one. Patience will be key and extensive research on the right coin would be essential.
Both strategies have worked for me personally and I continue to utilize them. Your $1,000 could become $10,000 over a period of six months or more if done right.