The formation of an investment portfolio is one of the basic conditions for those who want to earn in the field of crypto-currency. Some part of it must necessarily be allocated for the pioneer in this field - for bitcoin. Different analysts have a different opinion about what part it should take: someone says - 2%, someone - at least 20%, or evenl 50%. But why fill the rest? Which altcoins to choose and how to do it? A small tutorial below:
Look at the market share. For example, the share of bitcoins to total capitalization at the moment is about 38%. This factor is important for calculating the long-term outlook.
Learn this altcoin: is it useful? It is important to understand who and for what this cryptocurrency is needed. The higher the practical benefit, the greater the chance that the currency will be confidently quoted on the market. For example, one of the key benefits of ether and blockchain Ethereum is the possibility of developing and implementing decentralized applications (DApps). As for Ripple,it has overtaken bitcoin in India and will try to capture more than 50% of the country's financial sector due to a lower commission for payments and efficient service systems.
How often is cryptocurrency used and what is the amount of transactions? The volume of transactions shows how much the crypto currency is now in demand among the participants of cryptology. For example, at the moment, about 195,115 transactions are taking place in bitcoin per day, 799,836 in ethereum, and 809,646 in the ripple. Needless to say, the more transactions pass, the more popular the cryptocurrency?
Calculate the liquidity of the altcoin.
High liquidity, as well as the volume of transactions, shows how much the cryptocurrency is in demand in the market. Liquidity is determined by the ability of assets to be quickly sold at a price close to the market price.
Learn as much as possible about technology. This is perhaps the key aspect of any cryptocurrency. If the technology on which the cryptocurrency is based can not fulfill the goals set for it, then in the long term this coin will not survive.
Read, look, learn and grow rich! And do not forget that investing in yourself is the most important and lasting. Good luck!