Could there BE any more coins???

Chandler from Friends looking confused and overwhelmed

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!

A cartoon bitcoin riding a car up an incline

Here are two market cap investment strategies you can follow:

  1. 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

  1. 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

Quiz

Litecoin has a circulating supply of 66 million and its current price is $166. What's the market cap?

10,956,000

10,956,000,000

10,956

1,530,000

How Long Has The Coin Existed?

An man with an elderly face saying,

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?

OR

Would you rather invest in a coin that has a solid reputation and has investment trends?

A character from The Office looking surprised

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!

An easter basket with a number of eggs. Each egg has a different coin logo on it.

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!

A cartoon bitcoin riding a rollercoaster up and down

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

Quiz

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?

30% Bitcoin, 35% Cardano, 35% Theta

75% Theta, 20% Bitcoin, 5% Cardano

60% Cardano, 20% Bitcoin, 20% Theta

50% Bitcoin, 25% Cardano, 25% Theta

Take Action

A sign that reads

There's always a risk in investing!

But first, it's time to do your own research!

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This Byte has been authored by

LL

Leslie Larson

Instructional Designer