Recent weeks have seen a bit of a roller-coaster in cryptocurrency prices.
If Bitcoin (BTC's) historic move is anything to go by, we are in for somewhat of a bumpy, albeit an exhilarating ride in the altcoins and cryptos in general.
The recent move in the space and especially in BTC, now have the cryptocurrency market cap currently sitting at in excess of 600 billion U.S. dollars and this is before we have even seen any significant price appreciation in many of the altcoins (alternative cryptos).
Alternative tokens as they are also known simply means - alternatives to Bitcoin (BTC) as they are all modeled on and were developed after Bitcoin - the king of cryptocurrency.
Many people ask 'am I too late to get into crypto?' The answer is 'no'. Granted, some of the gains have already been made on some cryptos, however, there are even more to be made, and on some altcoins that are even yet to make their run.
The market is not either finished with its correction and it is the opinion of the writer that we may continue to see some more ups and downs near-term before things kick-start upwards and cryptocurrency prices increase.
Any significant correction in BTC means that altcoins will bleed too in the short-term, paring back some of their gains and giving a much better entry into these coins. New investors in the space will often panic when they see the bleed in altcoins and the cryptocurrency market cap takes a tumble.
Many will quickly run to the exit and sell. This is not a wise strategy because the crypto market can move so fast and deliver such powerful swings in cryptocurrency prices, most will find that by the time they have sold, the market has corrected back and have gained some.
It has long been the strategy of many a seasoned investor, to hold (hodl) and buy the dips in their preferred alt coins or tokens. This strategy will work when the investor is (hodling) a good portfolio of excellent altcoins and other cryptocurrencies that they know have sound fundamentals.
Do not be overly concerned about the massive swings in cryptocurrency prices on a day-to-day basis. As said before, a good strategy is to buy when crypto prices are low and to keep adding on the dips. Resist the temptation to chase alts that are racing higher. As you can be clearly seen from the past day, there is always a heavy correction just around the next corner that will give yet another opportunity to acquire more.
When crypto investing is approached in this way, the investor is always buying the lows, which means that if the altcoin or token were to rise then drop again, the correction point could potentially be where the investor initially entered. This can be very heartening especially for a newbie investor seeing that while the portfolio is not in gain, it is nevertheless not suffering a huge deficit.
A question that is often asked of Crypto Nut Cracker is, 'how much do I need to invest?'. Our response is, we are not financial advisors and we cannot, therefore, offer financial advice. A rule of thumb is, 'do not invest more than you are willing to lose'. Please always do your own research and practice proper due diligence.
The market can be exceptionally volatile, with extreme crypto price swings on a daily or even hourly basis. Would-be investors need to be aware of this before entering the space.
Now, let's say for example an investor could comfortably afford £500 or even £250. Either of these amounts invested in one or two quality small-caps within the top 10 cryptocurrencies market cap, could bring sizeable rewards.
The key is also knowing which altcoins to invest in and just as important, knowing when is the right time to exit with the gains before the altcoin market corrects at the end of its season. All this and more you will learn in the A-Z Guide with a subscription. https://www.cryptonutcracker.com/a-z-crypto-guide
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