When it comes to investing in any financial market a diversified portfolio strategy is vital. By spreading the wealth across various securities, an investor can eliminate the risk associated with putting all of their eggs in one basket. This way, if the value of one currency decreases substantially, the value of your portfolio will be able to rely on the values of the other currencies in order to maintain a healthy overall value. Your portfolio should consist of at least 15 different tokens.
When it comes to choosing the currencies you want to invest in, it is generally a good idea to do your own research before diving in head first. Listed below is a short list of things you can do to help gain a better understanding of a currency and the company behind it before you invest your hard-earned cash:
Visit the official website: all of the currencies listed on major exchanges such like Bittrex or Poloniex are required to have a fully functioning website before they are added to that given exchange. Go to that site and read what they have under the "About" tab in order to gain some knowledge on what the token is actually intended to do. The image below was taken from the homepage of XRP (Ripple).
Find out who their partnered with: as blockchain technology becomes more, and more popular, major banking institutions are beginning to partner with the companies that create and manage these tokens. For example: if you see that the token you are researching has partnered with a major banking institution, it is generally a good indicator that they have long-term potential. You can usually find this information at the bottom of a coin's website.
Major companies that have invested in XRP (Ripple) thus far (found via the "About" tab)
Find reliable third-party forums and websites: it might be a good idea to explore sites like Coindesk.com for updates on what the company has been up to recently. Do not trust the advice of a friend.
This entire process should take no longer than 60 minutes of your time for each currency you plan on researching. After you have gathered what you believe to be a sufficient amount of information about the coin, pull the trigger. Start by investing a small amount in the currency and, if it does well, you can decide whether you would like to invest more.
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SugarPeas.OG
Great suggestions. I've been working on developing and diversifying my cryptoport. Little by little. Thoughts of bitconnect?
It seems to be somewhat smaller of an exchange. I would suggest using Poloniex or Bittrex. They have the ability to offer a lot more functionality. Also, they have pretty good infrastructures to assist you if anything goes wrong during a transfer or something!
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STOPThank you very much for this information!