After you completed the chapter What are Altcoins? you know what Altcoins are and why they exist. Now you are ready for taking the next step: buy yourself some Altcoins!
Every crypto investor should keep altcoins in his portfolio. Diversification (i.e. spreading your investment over several assets) is highly recommended and also goes hand in hand with risk minimization.
At the end of this chapter you will know how to
- register on the exchange Binance
- deposit & withdraw funds to buy Altcoins
- buy your first Altcoin on Binance
- use different order types for your advantage
Should I invest in Altcoins?
As already mentioned, buying Altcoins has many advantages and is also useful when it comes to a balanced portfolio. However, not all Altcoins are the same. Each one is different in functionality, application, technology or other aspects.
Many of the more than 2500 Altcoins existing today have more or less disappeared from the scene. This can be due to a severe price drop and no more new purchases, or the project is simply no longer supported and maintained.
Due to constantly changing technologies, the number of new Altcoins is steadily increasing and with it their competition. Just like investing in Bitcoin, Altcoins also involve high risk.
However, with high risk comes high reward. In the past, it was nothing unusual for some Altcoins to make over hundred percent profits overnight.
When should I buy Altcoins?
If you want to buy Altcoins, now is the right time to do so. The markets are rising and adoption is low. Analysts expect the market price to rise sharply in the coming years. It would not be unusual for the price to exceed the all-time high of $20,000 per Bitcoin this year.
Some analysts even expect a price target of over $100,000 per bitcoin by the end of 2021. Of course, almost the entire Cryptocurrency market will profit from this. Due to the high correlation of most of the Altcoins with Bitcoin, these could also record a high increase.
Which Altcoins should I buy?
Before you decide to buy Altcoins, a lot of preparation is necessary. A detailed research is inevitable. After that a reasonable investment can be made.
On the internet there are countless forums, news sites and information about almost all existing Altcoins. It is very important not to trust only one source. Verify your results on several websites!
As behind every start-up, there is an application or product behind every Altcoin. And behind every product there is a team of developers. Before you invest your money in an Altcoin, you should make sure to be highly convinced of the underlying product and team.
It is very important not just to buy an altcoin because it is cheap. The potential of an altcoin can never be determined by its price. As an explanation: The increase of a token from $0.001 to $0.0002 will bring you as much profit as the increase of a token from $100 to $200. To be more precise, +100% profit.
Our tip is not to invest in a single Altcoin, but to create a portfolio of different Altcoins and Bitcoin.
Let’s go buy some Altcoins!
After this lesson you know the reason for buying Altcoins, when to buy them and which Altcoins you should choose.
If you are reading this on a smartphone, make sure you have a computer nearby, because now we are going to buy you first Alcoin!