Hey there crytpo lovers, we all love to invest any spare fiat we have into crypto for the ideal long term profits, especially the way fiat is looking rather shaky at present globally. Cryptocurrencies are worthwhile as an investment but you need to know which ones.
Now even the famous Charlie Lee, founder of Litecoin, suggests in an interview last week, that we should first invest in Bitcoin before we think of investing in any other altcoins. And it makes sense. His reasoning is that we will be investing in a more certain likelihood of profit.
I know many of us have our favorite tokens or cryptocurrencies, and we get very precious about them. And that makes sense, since it is not only our personal cash that we have invested, but it is also our mind that has decided to go with that particular investment. And we want to believe that we have made the right choice, that we know what we are doing. So we stick by our guns, so to speak.
Well, Mr Lee is giving us a simple yet sublime insight when he suggest that we first invest in Bitcoin long term. I personally hold a few altcoins, but most of my fiat went into Bitcoin. Perhaps a good estimation of a balanced portfolio might be 80% Bitcoin and 20% altcoins in total. This 80/20 ratio is a popular one in life and crops up regularly in smooth operations.
Now this is not investment advice and I know there are more experienced traders that might know the market fundamentals better than I do, and who might invest a bit more into the alts, especially catching them in their early phase. ICOs however, are more likely to fail than not, so although it is a fine way to make maximum profits, you need to be well-researched into your prospective project. Does it have a good team? Look on LinkedIn to see their history.
Does it have a working product that solves some worldly problem? Our social media sites here are fine examples of platforms that work, and that have a token of meaning to attract their true value. And that's why we invest our time as well as our fiat in them. There are over 3000 altcoins on the market, perhaps even 5000 if we count all that have ever been launched (Coingekko website will list the number accurately) and to pick a winner requires skill.
But to win with crypto you don't need skill of that sort if you simply prioritize Bitcoin as your primary holding. It is the safe way to invest in cryptocurrency, and this is my bulk investment. I may dabble in the alts at certain times, and sometimes one can even increase ones Bitcoin holdings via selling into and out of an altcoin, back into Bitcoin. Especially around nowadays, where a mini altcoin season seems to be upon us.
Some of the top alts are pumping a bit, which is a hopeful sign. Looming over all our investments though, is the upcoming Bitcoin halving. I believe it will follow the path of Litecoin, as does Charlie Lee, its founder. Litecoin had its halving last year and LTC pumped pre-halving quite substantially, only to crash equally as spectacularly before the halving event itself, and has not recovered much yet. But it should, in time.
It's all up to Bitcoin and the immanent halving now, to carry the alts with it, in its own time, so let's watch and see where this takes us.