Best altcoins to invest in for beginners

When it comes to investing in cryptocurrencies, there are many options available. With so many altcoins on the market, it can be difficult to know which ones are worth investing in and which ones to avoid. In this article, we will give you some tips on choosing the best altcoins to invest in and what to look out for when analyzing them.

Altcoins are all cryptocurrencies that aren’t Bitcoin. The majority of altcoins are therefore still in their experimental stage, and have a high risk of failure. Therefore, it is important to do your research and due diligence when choosing which altcoins to invest in. There are also many scams and pump-and-dump schemes in the cryptocurrency world, so it is important to be aware of these before investing in any altcoin.

The top two strategies for beginners are to look at the top 100 altcoins, as these are amongst the altcoins with the best-predicted future, and to avoid lesser-known crypto platforms. By following these two strategies, as well as thoroughly researching your altcoins, you have tried to prevent investing in poor or illegitimate altcoins.

Before building your portfolio

While this article focuses mostly on building your portfolio once you have decided to do so, there are important steps to take before getting to the nitty gritty. For example, it is important to get acquainted with the market and know what might influence and produce the frequent volatile changes in the market. This can be done by speaking with other crypto traders and investors, listening to crypto podcasts, or reading an informative book on the matter.

Secondly, it is important to set your personal goals for your crypto investing. First, is your goal to engage in crypto trading or in long-term investing? Second, how much money are you willing to spend and possibly lose? In other words, how high should your risk layers be? Due to the high volume and variety of altcoins, these decisions can influence what type of altcoins you want to focus on and what trading strategies you should use.

Altcoin analysis strategies

There are several ways to investigate whether the altcoin you want to invest in seems like a safe and profitable option. A first step is investigating the altcoins platform, traders, and producers. This is especially true for lesser-known altcoins, as scams are a legitimate threat.

Next up is looking at the market cap of a specific coin. The market cap is the total value of all the coins in circulation and is a good indicator of a coin’s liquidity. A coin with a large market cap is usually more stable and less volatile than a coin with a smaller market cap. Furthermore, the altcoins price history can give you an idea of how the coin has performed in the past and whether it is a good investment.

Once you’ve looked at all these things and have decided on a few altcoins to invest in, it is a good idea to divide them into their various risk layers. This way, you know which ones are more sensitive to market changes compared to Stablecoins or long-term investments. No matter how high or low risk the altcoin you choose is, it is important to remember that the market is always volatile, and that the values will fluctuate.