If you are new to the cryptocurrency space, one of the first questions you ask is “which cryptocurrency should I invest in?”. With an overwhelming array of currencies growing week by week, it can be a risky business trying to pick out a single winner.
A couple of simple techniques from regular stock trading can be applied to help manage the risk of picking a loser:
Firstly, average in to the space by investing a small amount each month, instead of piling in all at once.
Second, spread the investment over a number of currencies to minimize the impact of a big downside move in one single currency.
To illustrate this, I took nine of the currencies with the largest market cap from June 2016 and simulated investing just one dollar per month in each currency. So - excluding fees - that means investing $9 per month for 13 months - for a total of $117.
The return from this is a whopping $1,738!
The nine currencies I modelled were: BTC, ETH, XRP, LTC, XEM, DASH, LSK, MAID and DOGE.
So, while the entire cryptocurrency sector has moved dramatically this year, these two simple techniques can hopefully help newcomers to the space invest in a way that avoids piling into a single currency.
Good luck out there!
thanks
Well I think the top 5 are a slightly more solid bet... I also think veritaseum (VERI) is going to be a huge winner
In cryptoland, a $1 a month is $100 a year.
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