Cryptocurrencies you should have in your portfolio.
If you are just getting into cryptocurrencies, these are the top cryptocurrencies you should have in your portfolio. You want reliable and trustworthy cryptocurrencies to have in your holdings.
You may be tempted to buy the cheap cryptocurrencies and expect to see a big return. When you do this, you are leaning more on the speculation side rather than the investing side of the market.
Personally, I am a long-term investor and buy and hold my investments. An easy way to buy a cryptocurrency is using the dollar cost average method.
This means you buy cryptocurrencies on a routine basis such as weekly or monthly.
Some cheap cryptocurrencies can see big gains.
If you plan to be in the market for a few years, you should first start off with Bitcoin. You can consider Bitcoin as the gold of the cryptocurrency market.
Bitcoin was the first cryptocurrency ever created by Satoshi Nakamoto in 2009.
Shortly after the creation, Satoshi disappeared. No one knows who he or they are. Many people have speculated on who Satoshi is. No one has officially been verified as Satoshi Nakamoto.
Bitcoin should be at least 50% of your portfolio. There are a total of 21 million Bitcoin that will ever be created.
Worldwide there are only 19.6 million millionaires. Not every millionaire will be able to own one Bitcoin since several Bitcoin Whales and companies already own several.
Bitcoin Whales are cryptocurrency investors who personally own several thousand Bitcoins. Recently, many companies such as MicroStrategy, Tesla, and PayPal, have started to buy Bitcoin for their holdings. The number of available Bitcoin is slowly decreasing.
Bitcoin and other cryptocurrencies are based on the scarcity of the number of cryptocurrencies that are available. Unlike the dollar which can be printed as long as the printing machines are working, there is no end to their creation. With Bitcoin, there is a limit on how many can be created.
Every cryptocurrency that is not named Bitcoin is called an alternative currency or altcoin. There are thousands of cryptocurrencies that are on the market and available for you to own.
Personally, I don’t believe in owning many of them. Some of these cryptocurrencies could fail and they have.
The more you invest in this market, you have to be careful not to have too much money invested in some of the altcoins. You never know when a cryptocurrency exchange removes or delists the token from its platform.
Some of the altcoins will do well, but even some popular cryptocurrencies have been delisted on various exchanges. One, for example, is XRP which is currently in a legal battle with the United States government.
A few people believe XRP will win but many exchanges removed the cryptocurrency from its platform.
Ethereum is the second-largest cryptocurrency by market cap. This cryptocurrency was launched in 2015. Ethereum is an open-source blockchain-based decentralized software platform used for its cryptocurrency.
Many cryptocurrencies are hosted on Ethereum’s blockchain. Over 40 of the top 100 cryptocurrencies were launched on the Ethereum network.
Several companies are using Ethereum and its blockchain technology to improve their business. Forbes estimates that $2.9 billion will be spent on blockchain technology. Over 100 companies are exploring ways to integrate blockchain into their systems. Several companies include Amazon, JP Morgan, and Microsoft.
Ethereum should make up at least 30% of your portfolio.
I won’t go into specific detail on other cryptocurrencies.
Due to the nature of the cryptocurrency market, it is good to have a diversity of cryptocurrencies since they will all move at different times. Many of these are still very affordable with the possibility to go higher.
I have not covered all the altcoins but ones that I believe have a lot of promise to increase in price in the near future. My information is my best guess and not to tell you to buy these and hope they will make you millions. This is just a possibility these cryptocurrencies will increase.
You may have noticed I didn’t mention Dogecoin. This cryptocurrency is a meme coin and highly speculative.
If you want to put some money into Dogecoin, then go ahead. The danger of investing in this cryptocurrency is the price could quickly drop.
With the majority of my cryptocurrencies, I invest in them. With Dogecoin, I trade the cryptocurrency. Basically, I buy and sell this cryptocurrency frequently to take in my profits.
As for the future of Dogecoin, no one really knows. When Elon Musk tweets about Dogecoin, the price tends to rise.
Do you have a cryptocurrency that interests you?