Could there BE any more coins???
Have you thought of investing in cryptocurrency, but aren't sure which ones to choose?
It's overwhelming to figure out where to start, but asking the right questions will help you choose the right coin for your investment needs!
What's The Market Cap?
Market cap is the total market value of a circulating cryptocurrency’s supply.
Market cap = Current coin price x circulating supply of coin
Why is market cap important? To look for potential growth!
Here are two market cap investment strategies you can follow:
Higher Market Cap
Safer and less risky
Generally means it's already made itself a worthy coin
Ex: Bitcoin (BTC) market cap is the biggest and the safest/here to stay
Lower Market Cap
Higher gains and more risk
More room to grow, also some risk, as it has more room to become a coin that goes to zero
Litecoin has a circulating supply of 66 million and its current price is $166. What's the market cap?
How Long Has The Coin Existed?
While we may not feel as old as we look, we need a coin that has age on its side!
Would you rather buy a coin that was just created and has no history?
Would you rather invest in a coin that has a solid reputation and has investment trends?
Sounds like a no-brainer!
Of course, it might pay off to buy cheap coins just created, but you could also use that investment to buy a coin that is still low, yet has more history.
How Would You Diversify Your Portfolio?
You know the old saying, "Don't put all your eggs in one basket."
Well this applies to crypto too!
Adding a few coins of lower risk to your portfolio with your top pick coin can help you manage risk and potentially make more money!
There are many portfolio strategies based on risk tolerance.
High risk tolerance — higher % of smaller coins than BTC
Low risk tolerance — higher % BTC and lower % of smaller coins
Eric has just invested in cryptocurrency and has decided to buy Bitcoin, Cardano, and Theta. What percentage of each makes his investment a low risk tolerance?
There's always a risk in investing!
But first, it's time to do your own research!