Ok, so I’m relative new to all of this. So in the spirit of gaining acumen of crypto currencies, what metrics should I judge individual coins to to determine their relative merit? This is a very exciting, yet somewhat baffling technology-
A simple list of traits and what benefit those traits provide would be great!
Thnx
(1) Most coins are doomed to fail therefore ensure you hold mostly Bitcoin and Litecoin (say 70%). Most people are speculating on altcoins to buy more Bitcoin/Litecoin before the altcoin market consolidates.
(2) Never listen to anything on an exchanges trollbox.
(3) Never leave your coins on an exchange. Remember these are unregulated exchanges (you wouldn't trust your money with somebody you have just met would you). Transfer them to your personal wallet (only download from the coins official website) ensuring that you password encrypt them with a secure password (atleast 30 digits). You should always backup your wallet on multiple external hard drives/USB sticks. I personally have all my coins stored on two external hard drives and not on my desktop ensuring that they are offline and away from hackers. Your passwords should be offline and never kept in the same location as your coins. If you lose your passwords you have lost your coins therefore more than one copy is sensible. It will take some time to synchronize your wallets, however it's worth it for the security and control.
(4) Timing - Don't buy a coin because you are afraid of missing the train. If a coin is rising fast without good reason it is been artificially inflated to be dumped on the market. Only buy when it's settled in price (after the fall). When you are happy to buy monitor the exchanges for a while to ensure you are not buying at the daily peak. You will notice that nobody buys at the current sell price, therefore I suggest you don't either.
(5) When considering coins other than Bitcoin/Litecoin you should pick those that have innovation. An example would be ASIC resistance. I suggest you read up on this as this could be a game changer.
(6) Be careful investing in coins with premines (mining coins before the launch date) and IPOs (initial public offerings). Either avoid or spend more time researching these.
(7) Too many newbies panic sell when the price falls. If you avoid buying into a pump and ensure you buy at a 24 hour low you should hold through panic sells as it's probably a trap.
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Maybe not a rule however I prefer coins with a block reward that halves no less that every 2-4 years.
(9) There is no substitute for research. People here are biased and will try everything to get you to buy their coin. Make sure you are comfortable with the coins as nobody will offer you a refund when it goes wrong.