By According to the World Economic Forum, the cryptocurrency sector is estimated to grow nearly 4000% over the next 5 years. Though that represents a potential 40x return, you would need to pick the coin or coins that would make up the lion share of the market at that time. Unfortunately, no one knows for sure which ones those will be. While many newbies are attracted to the sector and hope to make huge returns, most are not qualified or understand the markets enough to take them on actively. Additionally, most approach the sector looking to pick the one or two currencies that will achieve the biggest returns and fail to diversify and hedge against their picks not being one of those top-tier future winners.
We at CoinBeat think if you are going to invest, as a newbie, a sum of $5000, you should use a professional service or at the least use a strategy that diversifies your portfolio across multiple coins and assets.
Our Pick of Top Tier and Emerging Coins
We would suggest investing in a mixture of both the more top tier coins like Bitcoin, Litecoin, Ethereum and Monero, as well as the emerging coins like IOTA, CARDANO, TRONIX and NEO. This way, whichever coin does surge, you will have a much better chance of having it in your portfolio at the time. Additionally, we think that using that kind of capital to actively trade would be a much better use of your investment capital and will likely generate much better returns than simply holding or “hodling” for the long term. That being said, most people are ill-equipped to actively trade and don’t understand the technology and workings of the financial markets.
When it comes to any form of investment into the cryptocurrency sector, knowledge is the key. Investors need to stay up to date on all the relevant market activity and actively hunt out top ICOs and emerging projects, as they will eventually generate the biggest returns.
The team at CoinBeat looks to consolidate all that information and ensure our readers stay well above the informational curve sector-wide . A great resource that will help keep investors and proponents of crypto up to date is the CoinBeat daily and weekly recaps, along with our exclusives from around the industry. Make sure you subscribe to be among the first to get the news that matters from around the industry.
Feel free to let us know what you’re buying, trading and HODLing in the comment section below, there are some many new projects out there.
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