Cryptocurrency investment – how to “dodge” Bitcoin and earn more on altcoins

cryptocurrency investment

Cryptocurrency investment have recently become a very popular form of depositing cash. As Google's statistics show, this form of investing is more interested in people than in gold. There is no wonder, because in the years 2012 - 2017 a lot of people have made huge assets on them.

Many of you ask me if there is still a chance to earn some money on cryptocyrrencies in the future? Personally, I think so. In my opinion, we are just somewhere at the beginning of implementing all sorts of solutions based on blockchain technology and similar. A lot of new and interesting projects arise, which with their operating principle can help in many areas of everyday life. In my opinion, Bitcoin just rubbed the trail for other, more interesting and more thoughtful projects. It is only a matter of time when the role of the king of the world of cryptocurrencies is taken over by another altcoin.

So if you have not earned anything so far on Bitcoin, perhaps it is not too late to achieve even better results by investing in less popular (yet) cryptocurrencies (colloquially called altcoins). In this topic I will try to present projects, that in my opinion have a chance to be successful in the future and at the same time to let us earn some money on them.

All information published on the blog is the property of its owner and may not be distributed without its consent. The offers and programs presented along with descriptions are only an informative element and in no way guarantee the generation of profits that are achieved by the author. The information provided is only an expression of his personal views and does not constitute a recommendation within the meaning of the Ordinance of the Minister of Finance of October 19, 2005 on information being recommendations regarding financial instruments or their issuers (Journal of Laws from 2005 No. 206, item 1715). The author of the blog in no way bears any responsibility for damages resulting from the loss of funds by third parties. Remember that you make all decisions at your own risk.

Everything that I will describe below, is my private view of the cryptocurrency investment based on knowledge acquired over the past few years. I do not give a guarantee in any way that the suggestions and types I present will work in reality and will translate into profit. I mainly rely on information from foreign forums, blogs and my intuition. Cryptocurrency investment have been, are and will be burdened with a much higher risk of losing the invested funds than in the case of bank deposits, gold or most other known investment methods. I took this risk consciously and voluntarily a few years ago in the context of possible profits that can be generated with this method of investing.

I invite you to read the entire topic. It is always possible to sow the seed and what will germinate from it, only time will show 🙂

Before you start...

The idea of cryptocurrency investment other than Bitcoin, was born to me a few years ago. However, it was only less than a year that everything really went seriously. The situation was changed by Bitcoin, whose price was inflated to seem unimaginable (over 19,000 dollars in the end of 2017). It is thanks to this that even more people heard about it and a large part of these people decided to explore the subject even more.

The current price for Bitcoin makes investors (especially the more experienced) look for alternatives. Not everyone can afford such a way of 'fun'. And although you can buy a part of Bitcin, many would prefer to have it at least in one piece (at least 1). That is why new cryptocurrencies are being created on the market. Many projects that are created are based on a blockchain solution or slightly modified solutions. Of course, many of them are created to speculate and quickly earn money. All in all, there are few projects that have a chance to appear in the real world. The rest is so-called 'Junk cryptocurrencies', which are created to inflate the pockets of their creators.

Nowadays, it is not entirely important what cryptocurrency we choose, because its 99% rate will reflect the behavior of Bitcoin's cryptocurrency king. Therefore, it is worth to use it for possible larger investments in order to determine the place of purchase. Personally, I hope that his dominance will pass one day and one of our owned crypto accounts will take his place and drive the crypto market even more (or disconnect from following another altcoin and will be the helm of itself).

How to choose cryptocurrencies for investments

At the time of writing this entry (beginning of December '17) there are more than 1000 altcoins on the market. So, how do you choose those that could bring us profits? I use the site coinmarketcap.com for this purpose. On the home page there is a list of the 100 most popular altcoins on the market today. Once in a while, I look at the statistics of each of them and if some cryptocurrency interested me enough to look at her closer, I am looking for more information about her. As a rule, the latest information can be found at www.forum.bitcoin.com, www.forum.bitcoin.pl and thematic blogs.

popularity chart of other altcoins / source: www.coinmarketcap.com

The next step is to check whether the cryptocurrency is already on the stock exchanges. Many of them have this problem, that the possibility of trading takes place only on one stock exchange. And this is not a good sign in the long run. Therefore, at least 2, 3 different exchanges must have a given cryptocurrency before deciding whether or not it is worth being interested in it.

I usually look for currencies whose price is really low. In such cases, it is enough to increase by a few cents and it is already great. However, not always cryptocurrencies that interest me are of low value. This is not a reason to not be interested in it and to think carefully about the decision to buy it in the near future.

Choosing the right exchange for purchase

After reviewing the list of alternative altcoins, it's time to buy them. But before you do, you should check which exchange offers this option. Not all stock exchanges support any less popular cryptocurrencies. In total, there are not many of them. So how do you check on what stock market we find the crypto-market that we want? Very simple when using coinmarketcap.com. It is enough that after selecting the appropriate cryptocurren on this page, click on the MARKETS tab:

Below you will see a list of current exchanges on which you can buy and sell a selected cryptocurrency. The stock exchanges that are at the very top have the greatest liquidity. Try to choose just that, because you buy and sell a given altcoin faster.

From my own experience I recommend these foreign exchanges:

They have quite an interesting offer and are safe for me. I have been using them myself for several years and I can not say a bad word. Below I place the Cryptocurrency Stock Exchange ranking, which is created by the readers of this blog:

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Never keep purchased altcoins on the stock exchanges. ALWAYS try to send them to your own wallet if possible. Keeping cryptocurrencies on the stock exchanges is dangerous and can lead to their irretrievable loss!

If you want to remain as anonymous as possible in the world of cryptocurrencies, you should consider buying face-to-face with other users. For this purpose, you can search for a person who wants to sell a given cryptocurrency on the largest search page:

Just remember to provide the correct wallet address when exchanging. At the beginning it is worth to transfer a smaller amount by bank transfer and check if it happened and then send the rest.

Where and how to buy less popular cryptocurrencies

Currently, there are a lot of stock exchanges, where you can buy Bitcoin. However, there are very few where you can buy other cryptocurrencies. And especially on our home market. Most Polish exchanges offer only the most popular ones, ie Liltecoin, Dogecoin or Ripple. Therefore, deciding to buy these less popular cryptocurrencies will not do without the use of foreign exchanges.

The problem with them is that when we send money by bank transfer, we will wait a while for their posting. The second downside is their internal conversion rate from the Polish zloty. Therefore, I strongly advise you not to top up your account with a bank transfer. Here's how I do it every time, saving time and money.

Step 1 - payment of money to one of the Polish stock exchanges

I have accounts on Polish Bitmarket and Bitbay stock exchanges. Personally, I use Bitmarket. I send money to their account by transfer in zlotys. As a rule, they are booked within 24 hours.

Step 2 - purchase of the appropriate cryptocurrency and preparation for its transfer

When the money is on the account I exchange it for Bitcoin or Litecoin. As a rule, I choose Litecoin, because the network is not as crowded as in the case of Bitcoin and the fee for transfers is much lower. In addition, every professional exchange supports Litecoin. In my opinion, this is the best cryptocurrency currently for fast transfer and exchange to other cryptocurrencies on other exchanges.

Step 3 - shipment to your own portfolio and transfer to the target exchange

The next step is to send the purchased cryptocurrency to your wallet. I do not recommend shipments from the stock exchange to the stock exchange (although it works and it is possible). It is better to send your own wallet and from it to the target market again. The portfolio for Litecoin will download, among others from their official site https://litecoin.com

Step 4 - converting cryptocurrencies into another one

On the target exchange, when your transfer cryptocurrency (in the Litecoin case described) will be posted, you can start exchanging it for other available altcoins. Sometimes it can happen that you do not exchange Litecoin for other, less popular ones. Then it should be converted into a normal currency of USD, EUR. Possibly re-exchange for Bitcoin and exchange for others. Here, much depends on the stock exchange whether it offers trade with Litecoina or maybe only with Bitcoin.

Now you basically have to pay the purchased cryptocurrencies to your wallet and secure their storage. Which wallet to choose and how to safely store altcoins? About this in the next chapter below.

Where and how to store cryptocurrencies

There are many different types of wallets for storing cryptocurrencies. Some are very easy and intuitive to use, but not safe (from the level of web browsers), the latter allow for mobile service and others require investment in special devices or separate computer equipment. So which wallet to choose to feel safe? This is not an easy matter, because first and foremost you should ask yourself: what will the wallet be needed for? I treat my cryptocurrency purchases as a long-term investment, so I would like them to be safely stored until they are sold. Here are my ways to store altcoins:

Hardware wallet (dedicated device)

The safest form (or at least one of the leading forms) is the purchase of a dedicated device. Prices range from a few hundred to even several thousand zlotys. It all depends on the model and the company. I have tested a few of them in my cryptocut experiment, so I can recommend you a few things worth attention:

Ledger Nano S – my strong favorite. There is no road (cost about 79 euros) and fast delivery time (usually after 3 days I had a delivery by courier). It does a great job of storing Bitcoins and other cryptocurrencies. It is small and similar in shape to the pendrive, thanks to which it is easy to hide it.

 → Przeczytaj moją recenzję Ledger Nano S

cryptocurrency investment ledger nano s wallet

Ledger Blue – device from the same company as the previous one but with a larger display. In total, it looks like an mp3 player from the year 2000. It works better because of this display. Of course, it is more expensive than the previous one by about 3x, so not everyone will want to spend 1000 zlotys in the border. In my opinion, the most worth recommending. It is often missing from stock and is unavailable. Therefore, you need to hunt for him often.

cryptocurrency investment ledger blue wallet

Offline wallet

In principle, it is a cheaper alternative to hardware portfolios when it comes to costs. Its creation only boils down to generating our portfolio address on the website, and then saving its public and private key in a safe place. After generation, the system gives the possibility of direct printing of the portfolio data in several copies. You can make such a wallet at https://www.bitaddress.org/. Just remember that not every cryptocurrency has the ability to generate an offline address.

Wallet as a computer application

To support this type of wallet, we need special software that is installed on your computer. These are 100% free and secure solutions if we download them from official websites. Most of them are based on open licenses, so people familiar with programming can look at them and convince themselves that they do not contain malware.

The downside of this software is that we only have access to the wallet from the computer on which it is installed. So it is not a bit of a mobile solution. It is possible to install it on a flash drive like pendirve but it also involves access to another computer to use it.

However, the biggest advantage of this solution is that it is as secure as we care about the level of security of our computer. Although for this type of software, it is recommended to buy a separate computer, where we will use it only for portfolio management. I myself have a second laptop, on which I have nothing but an operating system and cryptocurrency portfolios. The computer is disconnected from the Internet and hidden deep in the drawer under the clothes 🙂 I only use it when I want to cash my altcoins.

The software for a computer can be further divided into two more small groups due to the size of the software that will occupy the disk. For this reason, with each wallet I marked if it is light or heavy. Below is a list of tested wallets:

These are the most frequently selected programs. However, there are many more in the network and most of them can be found at www.bitcoin.org in the Desktop tab. I will add that all of them are adapted to such platforms as Windows, Linux and iOS.

My cryptocurrency investment

Below is my full crypto list in which I decided to invest. I divided the investment method into two groups. In the first list there are such altcoins, which I intend to hold at least until the next bubble (if we wait for it). In the second, I made a cryptocurrency statement, which I want to speculate and with their help to multiply part of the capital on an ongoing basis. It is not inconceivable that I will move some of them to a long-term investment after purchase.

The following statements are expressed in dollars. However, on my Polish blog ( www.iwi.pl) in the original entry (https://www.inwestycjewinternecie.pl/inwestycje-w-kryptowaluty/) I am using polish zloty currency (PLN). Depending on the dollar exchange rate, the value of invested and paid funds may be slightly different.

List of cryptocurrencies in which I invested and HODL

In this place there is a list of cryptocurrencies, which I bought with the hope that a given project will be fired and will earn good money. Only cryptocurrencies that I bought from funds deposited on the stock exchanges will be given here.

TRON
[TRX]
purchase date
price in USD
money spend
coins
sell date
sale price
profit / loss
21.05.2018
0.0809
195 USD
2 732
-
-
-
23.05.2018
0.0723
46 USD
559
-
-
-
08.08.2018
0.0255
450 USD
16 622
-
-
-
TOTAL:
690 USD
19 953
RIPPLE
[XRP]
purchase date
price in USD
money spend
coins
sell date
sale price
profit / loss
10.06.2018
0.6185
3 540 USD
6 044
-
-
-
08.08.2018
0.3478
375 USD
1 135
-
-
-
TOTAL:
3 914 USD
7 179
NIMIQ
[NIM]
purchase date
price in USD
money spend
coins
sell date
sale price
profit / loss
27.08.2018
0.0014
275 USD
168 749
-
-
-
09.09.2018
0.0013
110 USD
80 000
-
-
-
20.09.2018
0.0013
81 USD
68 770
-
-
-
TOTAL:
466 USD
317 519
Internet of Service Token
[IOST]
purchase date
price in USD
money spend
coins
sell date
sale price
profit / loss
05.12.2018
0.0046
432 USD
93 620
-
-
-
TOTAL:
432 USD
93 620
Game Credits
[GAME]
purchase date
price in USD
money spend
coins
sell date
sale price
profit / loss
05.12.2018
0.0725
364 USD
4 915
-
-
-
20.03.2019
0.1021
476 USD
4 766
TOTAL:
840 USD
9 681

Below is the financial statement of existing investments. In addition, I will add all messages in the commentary on a regular basis. Only comprehensive statements will appear here.

deposit [USD]

the sum of external money paid to exchanges from the beginning of the entry

saldo [USD]

the total amount invested together with the profits from trading in cryptocurrencies

present portfolio value [USD]

current cryptocurrency course

investment time

in months

ROI

from the initial deposit
(without re-investment)

4 562,00

6 342,00

6 290,00

16

+37,89 %

Last update: 02 April 2019, 03:04 PM

List of cryptocurrencies I'm speculating on stock exchanges

Unlike the previous paragraph, here I present the cryptocurrencies I bought and decided to speculate on them. The goal is one: increase their number at the same time not losing the capital (and it is best to multiply it). As a consequence, you will be able to earn faster and earn more on subsequent increases in their value.

deposit [USD]

the sum of external money paid to exchanges from the beginning of the entry

saldo [USD]

the total amount invested together with the profits from trading in cryptocurrencies

present portfolio value [USD]

investment time

ROI

-

-

-

-

-

Last update: 02 April 2019, 03:04 PM

Summary

I treat investments in cryptocurrencies as long-term. I am not in a hurry. Especially due to the fact that it is not entirely clear how the future of cryptocurrencies will go. So far, most countries do not introduce any serious restrictions, but there are rumors that actions will be taken soon. The money I have invested in cryptocurrencies are those whose possible loss will not hurt me or will not plunge me. If you can make money on cryptocurrencies in the future, it will be great. If not, the world will not collapse on my head and will not plunge me financially. The entry will be updated on a regular basis as soon as I change something in my cryptocurrency portfolio.

I wish you all fruitful investments!
MR INVESTOR®


*** This is a english version of polish original post: https://www.inwestycjewinternecie.pl/inwestycje-w-kryptowaluty/

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2 thoughts on “Cryptocurrency investment – how to “dodge” Bitcoin and earn more on altcoins



  1. I bought 12 btc for $3520. I just sold out all of them and planing to re-buy if price rise 5270 just in case. Greetings cryptoassets folks 😀

    1. Well… it’s hard to say if you made a good decision. I’m HODL all my cryptoassets. I’m speculating a bit on IOST, but nothing special so far. As I said on polish blog a few months ago, price for BTC (and other cryptocurrencies) was really good for buy (almost 90% from last ATH). People who bought, still have some margin to HODL 🙂



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