Altcoin, derived from the words “alternative” and “coin,” is another kind of cryptocurrency beyond the more popular Bitcoin. Some examples include Ethereum, Dogecoin, Ripple and Litecoin.
According to Ted Rogers, president of Xapo (a company that provides bitcoin wallet), Bitcoin’s recent drop to $6,000 could lead to the collapse of 90 percent of cryptocurrency assets in Coinmarketcap, per Bitcoinist.com. But he also said that Bitcoin’s level opens a great opportunity for crypto investors to buy more of the said digital currency.
With the possible fall of cryptocurrency prices on the horizon, no one wants to get caught and become a casualty. To survive the collapse and even take advantage of the situation, Cryptovest enumerated some things investors can do:
Leverage on smaller price moves
You can do a fast in-out trading even with just 1 percent price movement. There could be a few gains, but there is still a possibility of a loss. Some crypto assets are now more affordable because of the recent price fall, and this could mean that you can earn with small-scale investments or by choosing low-priced coins first. But you may still want to consider minimizing risks by setting losses closer to the market prices of the traded cryptocurrencies. Just always remember that this is more of a short-term strategy. However, a few gains are still gains after all.
Observe the price behavior
Though most news highlighted the loss of cryptocurrencies, prices could still get higher as this particular market is volatile. Always rely on what the data are saying, and do not always believe what other people say you should do when it comes to your investments. You can try creating virtual portfolios first through several applications like Delta, CoinTrackr, Coin Manager, Coindex Beta and Cryptompare, so you can do a dry run before actually investing.
Consider investing in a variety of cryptocurrencies
You can create a collection of stablecoins and exchange coins that you can use as you wait for the prices of altcoins to rise. Though their values remain steady over time, stablecoins could still be risky. Although there is still hope for altcoins, it is best to still keep bitcoin on your portfolio as it is the most stable of all cryptocurrencies. Investing in a variety of coin creates a safety blanket for crypto investors just in case one or two of these cryptocurrencies crash.
Protect your investments
Consider acquiring bitcoin wallet and storage services to protect your coins. Be careful when visiting certain websites because some of them have malware and viruses capable of stealing identities to hack into investments. You could use the two-factor authentication process for added security.
Though altcoins are threatened recently, you should still consider taking advantage of the current situation by following some of these tips.
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