Last Updated on September 19, 2022 by Olivia Anderson
Are you finding it difficult to buy a single Bitcoin (BTC)?
Stop right there!
Cryptocurrency can be an exciting investment even if you cannot afford Bitcoin.
As a crypto investor, you should know that there are thousands of cryptocurrencies available in the market in which you can invest.
Cryptocurrencies beyond BTC are called altcoins or alternative coins.
But do you know how to safely invest in altcoins?
New investors often suffer losses in cryptocurrency because they start investing in it without understanding it comprehensively.
Let us find out what altcoins are about and how you can make handsome profits with them.
What is an Altcoin?
Bitcoin has become the world’s largest cryptocurrency by market capitalization and many across the globe are unaware of other cryptocurrencies.
Altcoins can be described as cryptocurrencies other than Bitcoin.
Some of the popular altcoins include Ethereum, Binance Coin, Cardano, Solana, Tether, and more.
Altcoins exist on blockchain technology that is protected by cryptography.
The transactions of altcoins are recorded on a public distributed ledger to ensure enhanced transparency.
But when you are investing in altcoins, you should be careful about their type and technical capacity.
The best way to pick an altcoin is to find out its technical ability and then invest in it.
There are different types of altcoins such as stablecoins, meme coins, governance coins, etc.
Carl Runefelt, alias, The Moon, is a global crypto leader who is pushing for the mass adoption of cryptocurrency.
He says, “We have seen altcoins rally very, very strongly in the last few months. I think we will continue to see that. I think the likely scenario is that we will continue to see altcoins rise before Bitcoin peaks.”
Tips to Safely Buy Altcoins
There might be many questions popping up in your mind related to altcoins.
Cryptocurrency is considered volatile which means that its value can fluctuate at any time.
You might be asking, “Is it safe to invest in altcoins?”
Altcoins can be a useful investment if you devise a sound investment strategy.
Here are some of the best strategies you can follow when buying altcoins.
Crypto experts always recommend investors be careful when they are investing in cryptocurrency.
The dollar-cost average strategy will help you avoid making mistakes that can hurt your investment.
Carl says, “The most important strategy is that you should use the dollar-cost average strategy. Do not put in everything in one single day. When you buy today, there is a huge risk that this coin can go down, and you are left with no money to buy any coin in a dip.”
Under the dollar-cost average strategy, you would be investing at intervals in cryptocurrency.
When you see an altcoin hitting the maximum value, you can sell it and buy other coins.
This would help you avoid unwanted losses when the crypto market is bearish.
Watch the Volatility
Another important strategy that you should follow when investing in altcoins is closely analyzing the crypto volatility.
Cryptocurrency is a decentralized currency which means that it operates free from any regulations.
Neither a bank nor any government can interfere in crypto transactions.
This makes cryptocurrency a volatile currency.
To avoid crypto volatility, you should do market research by reading the current trade charts of the cryptocurrency in which you want to invest in.
Diversify Your Investment
Market sentiments play a significant role in crypto investments.
Mostly, crypto investors create hype around a particular cryptocurrency to attract more investors.
But you should avoid investing all your money in a single altcoin as this can result in a loss when its value fluctuates.
Carl on his YouTube channel, The Moon, emphasizes, “Sell coins when they hit the top value and purchase another coin, take your profits, and buy other coins as cryptocurrencies are highly volatile. This applies to everything, whether it is Bitcoin or any other coin.”
You should diversify your crypto investment.
Whenever you are looking to invest in cryptocurrency, you should buy multiple altcoins to make good profits.
Crypto diversification is followed by successful investors, you can also do the same to become one.
Cryptocurrency has come a long way since its introduction in 2009.
Today, there are hundreds of altcoins available to buy that provide an excellent opportunity for those to enter cryptocurrency who cannot afford a single Bitcoin.
You can follow the above-mentioned tips to make a sound investment in cryptocurrency and make a lot of money in future.