helpful guide to investing in Cryptocurrencies. newsbtc bitcoin news Investors are always looking to put money into different assets to satisfy their diversification requirements. Equity investors are often seen maintaining a percentage of their portfolios in slightly unrelated asset classes such as gold and real estate. A small section of investors are also interested in buying artworks, antiques, and old coins, as they represent a completely different class, generally unaffected by today’s global turmoil. Now, the time has come to embrace another asset class called cryptocurrencies, which includes the likes of bitcoin, litecoin, dogecoin, and many others.
Investing in cryptocurrencies requires an unprecedented level of research and analysis, because a majority of these cryptocurrencies are still new to the digital ecosystem and present huge investment risks to less-researched investors. Data regarding the leading cryptocurrency bitcoin is readily available, making it a viable investing option , after necessary due diligence.
But, with no fundamental backing, technical analysis is the only tool with which some level of study can be conducted regarding the future price performance of the cryptocurrencies. And we have earlier put out a detailed report as to why trading bitcoin with technical analysis is tough . What can be said of other altcoins?
So, how do you really invest in cryptocurrencies? Do you simply put equal amounts in the top 10 leading cryptocurrencies and? Or do you first understand the technicalities of each coin first (as you would do in stocks by first understanding the business models), and then decide if it is a worthy investment? How do you protect yourself from scamcoins , which have emerged over the past few years?
Here is what I recommend:
> Understand the Coin – I believe there is a good incentive in understanding how the altcoin works. We are witnessing a hoard of companies […]
