I think you should first think about whether you are an investor, or a day-trader. Often people mix these up. Most people who 'invest' in altcoins expect some short term gain. Often get frustrated when they don't buy and realise profit straight away. Focus more on the long term if you really want to invest. Look at the coins established infrastructure and team. With so many alt-coins out there it is very difficult to tell the difference between a legitimate coin and just another scam.
I agree 100%. Day trading is not investing, and new coin launches fall under the gambling category. 80% of coins launched are gone within the first 30 days. If you want to invest in altcoins, you are going to have to do your own research, because everybody will promote their own coin as the best.
Crypto is risky, so my advice would be:
1. Determine a $ amount that you won't lose sleep over, to put into crypto.
2. Give up a daily Starbucks latte for a month (or something else you waste money on - we're all guilty of something
), and you have over $100. 3. Use that $ amount to buy some Bitcoin.
4. Go to http://coinmarketcap.com/ and check the currencies.
5. Look at the 180 and 365 day charts - I want to know they can make it at least make it 6 months.
6. Check out the top 50 (yes, I know it's a lot of work).
7. Look for ones that have an overall up-trend. This is crypto, there will be lots of ups and downs, but the overall trend should be positive. The ones to stay away from, at least until they can prove themselves over the next year, are the ones that resemble Mount Everest or a roller coaster.
8. Make a list of these, and then go to their forum thread and do some research:
" Look at the coins established infrastructure and team. "
This is critical. Every coin is making elaborate claims of the latest features and anonymity. There are too many coins chasing the anonymous market. I'm not saying don't invest there, all I'm saying is choose very carefully if you do. It is going to take a lot more than features, to become a currency on the world stage. Are they actually doing something to expand their user-base outside of Bitcointalk? Look for currencies that are operating as if they are a business if you are looking to make money over the long term. I would like to see a real, researchable, name attached to the coin - does this person have a record of taking things to a higher level in business?
Once you have your list narrowed down, diversify your holdings to minimize your risk, should some of them fail. It should be something like 20 - 40% Bitcoin, 20% Coin A, 20% Coin B, and perhaps 20 -30% in a few others, possibly some with a higher risk level (max. 10%).
Involve yourself in the community, even if it's just asking questions.
Good Luck!
