By Let’s talk about investing in Altcoins. What you have stumbled upon is what is called an index strategy. This would be a very diverse and basic one, but an index strategy nonetheless. If you were to take on this strategy, chances are you would actually do relatively well in the cryptocurrency markets. That’s because, while the markets are still very young, they are growing very rapidly. According to the World Economic Forum, the cryptocurrency sector will reach a market capitalization of $20 trillion USD over the next 5 years. That’s a 4000% increase from the current $290 billion level it is at now.
The problem with assuming you can get that 40x return is that no one knows which coin or coins will be the dominant top tier currencies of that huge market. Investing in 100 coins would ultimately give you a much better chance of getting a decent amount of that growth.
Is a 100-Coin Strategy the Most Strategic?
Assuming those predictions are correct and we were to grow to approximately $2 trillion in the next year, you could potentially see a return of around 800% by following this strategy. The challenge is, however, that it would be nearly impossible to administer and doesn’t take into account that a specific currency might vastly outshine the rest. That currency may not currently be in the top 100 or may not even be invented yet.
CoinBeat does offer daily and weekly market summaries that will help its subscribers weed out the lesser likely picks; however, administering a 100-coin portfolio would still represent a huge demand on time for the everyday investor.
A Better Strategy
We think that while most people do look to this type of a strategy, a much better use of your capital would be to actively trade as you wait for the top tier coins of the future to emerge. That way, your capital is working and generating profits for when you are ready to invest in the goldmine coin of the future. Most people, however, are not equipped and don’t have the time or knowledge to actively trade in an unregulated market.
CoinBeat looks to help bridge that divides and through our platform, we connect cryptocurrency investors with world-class cryptocurrency news and information. Subscribing to CoinBeat, you could copy and mimic the trades and positions of pro traders who write for us and offer strategies and expertise that works.
Another great option is to look at our top ICO picks, as they are projects our expert team has done their due diligence on and maybe the bigger profit-making projects based on that research. CoinBeat wants to ensure the entire sector moves towards transparency and only the best projects ever get covered by us.
On the flip side of that, we also believe that getting information that will negatively affect your portfolio first is a key to ensuring you get out of positions before major dumps. We aim to beat all other crypto news outlets in this regard, delivering information to our readers and subscribers before that news becomes public on a mainstream level.
We think, rather than trying this strategy with 100 coins, most of which will fail, you should narrow it down and take on an active trading approach to investing. We currently offer a variety of multicoin index strategies that would suit your needs and likely save a lot of the capital wastage in your 100 coin strategy. Take a look at Coinbeat’s pro-trader strategy guides to get more information and make sure to check back frequently for daily and weekly market recaps.
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