A question I always see is, “what coins should I invest in?”
While I can’t tell you that (legal purposes), I can give you a few tips that will help you along.
Let’s dig in:
Low Risk Tolerance? Find Stable Altcoins on coingecko.com
If you’re a person that doesn’t like a lot of risk, then stick with coins that have quite a bit of money circulating through them and don’t have large explosive moves.
You can find these on coinmarketcap.com or coingecko.com.
Just go to coins and look for the top coins:
However, you’ll want to stay away from USDT and USDC coin as there isn’t much fluctuation in those.
Normally, your top 30-40 coins will be more stable.
High Risk Tolerance? Find Explosive New Token Listing
On exchanges like Kucoin or Bybit, they’re always listing new tokens. These coins tend to have explosive moves when they’re first listed so you could profit from those moves.
However, just know that if there isn’t as much money moving in that token (liquidity), it could be difficult to close it for profits and convert it back to a more stable coin.
In this scenario, I’d want something to have at least $500,000 in it for me to consider trading it with a bot.
Become Risk Averse With A Diversified Crypto Portfolio
The best way if you’re unsure is to just spread the risk around. Divide your funds up and use part for more stable coins and the other for more risky coins. Also have a plan before you go into trading the token. Know where you want to get in and where you want to get out.
This way, you don’t put all your eggs in one basket and have a better chance of making a profit overall.
P.S. – If you want a tool to help you calculate profits on tokens, you can use this one at this site: https://btc.feh.im/ It will help you right down to multiple zeros behind the decimal!
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
