It’s fair to say that altcoins as well as crypto as a whole isn’t doing all too well right now – just take a look at the Kusama price if you want an example of one of the top altcoins getting dragged down into the ground.
This is precisely why knowing which coins to invest in is now more important than ever.
There are a few things you need to look out for in the current markets if you want to learn how to thrive, and if you know how to spot a good opportunity, you truly will have the crypto world at your mercy. Let’s just jump right into it and talk about how you should decide which altcoins you should invest in.
What Is Your Tolerance For Risk?
The first thing you need to assess when deciding which altcoins you should invest in is your tolerance for risk. Are you willing to risk it all in hopes of making a monumental profit, or would you prefer to play the long game, with any and all returns being minimal?
Both strategies work for different people, and depending on your tolerance for risk, either one could be the best course of action for you. It’s also worth noting that you do not have to just go with the extremes.
Your tolerance for risk is a scale, and this is something that is mirrored by altcoins. There are altcoins that range all over the scale, and you will be able to find coins that satisfy your needs perfectly if you are willing to do a little digging.
Saying this; even if you do have the capacity to take on a ton of risk, you still need to be smart about your investments. Liquidising your entire portfolio and putting all of your capital into one altcoin is not likely going to be a good idea, no matter how certain you may be of said altcoin’s success.
As long as you pick your investments strategically, then you can take on as much risk as you like, and you might even end up benefiting from harbouring more risk – you know what they say; fortune favours the bold.
Utility Reigns King In The Current Markets
In the current markets, utility reigns king. Just take a look at any of the top altcoins if you need further evidence of this – almost all of them provide extra value on top of acting as a simple cryptocurrency.
The growing preference for utility is a direct consequence of the perilous markets we are facing today. Investors are just not willing to invest in anything that doesn’t have some semblance of security behind it, and because of this, any altcoins that are not able to provide a ton of utility are falling behind.
Not only does going for altcoins with utility reduce the chances of you coming out at a loss in the current markets, but it could also end up being incredibly lucrative.
There have been more than just a few altcoins that have blown up throughout the past few days and weeks because of the utility they provide, and if you know how to spot a good opportunity when it presents itself, then you could be set to make higher returns than ever before.
Investing in altcoins with utility is non-negotiable if you want to be able to thrive in the current markets, and if you decide to ignore this advice, then your experience delving into altcoins is not likely going to be all too positive.
Do Your Research
The best piece of advice we could give is to simply do your research. Even if an altcoin is looking incredibly promising and everyone else is getting on board, you should still take the time to do a few background checks and take a peek at its past performance to see if its a risk worth taking, and this way, you will be able to minimise any risks you might be taking on.
You should never jump head-first into an investment, no matter how enticing it may seem. This exact situation is what has caused thousands of investors to lose a sizable portion of their portfolios, and if you want to avoid joining this list of people, then you need to do everything in your power to hedge the odds in your favour.
If you follow all of the advice we have given you in this article, you should be able to spot an incredible opportunity at just a moment’s notice, and you may even be able to excel in a market where everyone else is struggling to stay out of the red.
Pure luck is not going to bring you results in the current market. No, unless you know how to pick the right investments, you could end up losing every asset you acquire. Do not overlook this warning – The markets are ruthless as things stand now.
However, there are also ample opportunities to make a fortune if you know what you are doing, and in fact, there potential returns you could see from investing right now could be incredible.