Where Should I Start? There are Over 800 Altcoins Out There?

Currently, there is an overwhelming number of altcoins to invest it. Over 800 coins is not a joke and with growing interest in cryptocurrencies, many newcomers are struggling as to how to chose the “right” coin to invest in.

There are basic rules that can be applied by a “young” investor in order to filter out coins and create a stable portfolio.

  1. The Market Cap

The Market Cap cannot be ignored and might be used as a trust indicator. The higher the market cap, the more people investing in that coin and therefore considered more trustworthy by investors. For example Bitcoin, Ethereum, Litecoin.

  1. The Technology

It is always good to do your homework and research the technology behind the project, understand the overall idea which has the future potential of a mass adoption. Some projects already have a beta version of their products and it is always a good idea to have a good look at it and test it by yourself. For example Steem with its SteemIt.com

  1. Due Diligence

While investing in a coin, the investor has to make sure that the team behind the project is competent and trustworthy. Doing some due diligence on team members, website and documentation provided could help to form a general impression of that team professionalism.

  1. Social Media

In order to stay up to date with the latest news and updates, it is important to use social media sources and joining the community discussions where you can ask your questions and generally communicate with fellow investors. Join cryptocurrencies Telegram and Youtube channels, Facebook groups, forums and blogs. Information is the power.

  1. Technical Analysis

Besides the fundamental analysis described in “the Technology” section, investors should have basic knowledge of the technical analysis. Technical Analysis is a price action analysis where you can visualise market movement and find patterns. This could be very useful to find higher probability opportunity, get a good timing and cheaper price to buy your coin.

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