Feeling like you’ve missed the boat with Bitcoin?
[If you like to beat yourself up see how much you would have made investing in Bitcoin with whatifbitcoin.com]
Plus there is still the potential for very large gains from Bitcoin (BTC). Max Kaiser believes that Bitcoin will go to $100k a coin and beyond and a Paypal director believes that Bitcoin can reach $1 Million a coin within 5-10 years! And both John McAfee and James Altucher are predicting Bitcoin to reach $1MM by 2020.
Think that’s far fetched? In 2017 BTC achieved a growth rate of 1547% (before it corrected and entered the bear market in 2018).
And it’s annual average yearly growth rate since 2010 is 167%:
Bitcoin average DAILY value change:
— Jameson Lopp (@lopp) June 5, 2017
What is an altcoin and why should I invest in them?
The biggest upside gains will likely come from investing in one of the alternatives to Bitcoin (termed altcoins) such as NEO that can have much larger % yearly gains. In 2017, NEO went from a price of less than $1 a coin to $50 within 3 months as shown below. Alt coins are being spawned from the rise in initial coin offerings marketed by crypto startups. If you’re looking to invest in ICOs you can check out my ICO post here.
And it’s not just NEO (with its 31620% gain from the start of 2017 to August), below are the returns of the top altcoins (from Crypto Daily youtube channel on cryptocurrencies):
Q: Which is the Best Crypto Currency to Invest
A: All of the top ones. When you’re investing in cryptocurrency (rather than trading in and out) I think the best strategy is to put a small amount into the top 100 listed on coinmarketcap.com. You will come across some scam coins which are Ponzi schemes but most are legitimate so do your research. Spreading ownership across a large number of coins means that you are more likely to have one of your coins pop. And that is exactly what this guy has done with his crypto investing $10 into the top 100 at the start of 2017 and was was up 26k or 2700%!
Where to buy altcoins like NEO
STEP 1 – Buy Bitcoins with credit card
In order to purchase altcoins you first you need to go from fiat money to digital coin. Right now there are very few altcoins you can purchase directly from USD (basically only Ethereum and Litecoin) and the vast majority of altcoins are paired with Bitcoin (BTC) so purchasing BTC is the way to go.
To do this I use coinbase.com (the world’s largest Bitcoin exchange) where I exchange my GBP (or USD) for Bitcoin (BTC). All online funds are now insured and with Coinbase you can buy bitcoin with a credit card instantly. I personally think it’s the best place and easiest way to purchase cryptocurrencies.
Sign up through my link and we will both receive $10 of Bitcoin for FREE!
STEP 2 – How to trade bitcoin
Now that you have purchased, what can you buy with bitcoin?
Find the exchange that your chosen altcoin (such as NEO, IOT, OMG, CVC etc) is traded on. A useful site to find the right exchange is coingecko.com (I just google something such as “NEO exchange gecko”).
Once you sign up with the exchange you will need to transfer some bitcoin (BTC) in order to then purchase altcoins with it.
In HitBTC simply go to the ‘Account’ tab and hit the + deposit icon:
Then an address and QR code will appear such as the one below – do not use this one as it is mine (unless you want to send me money!):
Copy down YOUR address and head back to coinbase, click on accounts and hit the ‘Send’ button where it will ask you to enter a BTC wallet address:
Type in the address given above from the (HitBTC) exchange and transfer the amount you choose. It can take a few minutes up to a few hours for the transfer to go through due to the current speed of the network so you may need to be patient. It’s best just to test with a small amount first such as $10 too, then transfer a larger amount once you’re familiar.
STEP 3 – Make the trade
Inside the exchange, click on the market for the coin you want to purchase. If you purchased BTC and want to buy NEO cryptocurrency then that’s the BTC-NEO one (below)
In the Market tab (the most simplest method) type in the number of coins you want to buy (trading your BTC for) and hit ‘Buy Market’ to place your trade, in this case buying 40 NEO for 0.1 BTC:
Once the trade is exectued the coins will show up in the corresponding wallet for the coin in the Account tab.
Siam Kidd from the Realistic Trader who has a great Crypto webinar is in the video below where he shows how he placed a trade for NEO cryptocurrency on the Bittrex exchange (a little more complicated than Hit BTC above):
STEP 4 – Get your coins off the exchange into an altcoin wallets
Now you need to get your coin off the exchange and into an altcoin wallet that you control. Each coin website recommends wallets to use, below are the wallets for NEO.
STEP 5 – Get your coins into cold storage
Trezor has a great interface for storing the main coins such as Bitcoin, Bitcoin Cash, Litecoin and connects with My Ether Wallet to be able to hold ETH and all ERC20 tokens.
What were the best altcoins of 2017?
In putting together my portfolio of altcoins I wanted to find out what had been the top alt coins to invest in over the last year.
I looked at the top 10 coins now and where they were a year ago based on the historical snapshot of coinmarketcap on Jan 1st 2017 . From what I can see, below are the top five altcoin gains of 2017:
- NEO (NEO) – $0.144 > $73 = 506x!
- Ripple (XRP) – $0.0065 > $2.21 = 340x
- Dash (DASH) – $11.26 > $1017 = 90x
- Ethereum (ETH) – $8.26 > $723= 87x
- Litecoin (LTC) – $4.37 > $217.19 = 50x
- Monero (XMR) – $13.58 > $348.65 = 25x
- [Bitcoin (BTC) $936 > $13,121 = 14x]
Holding a basket of these top altcoins as well as Bitcoin would have netted you 39x!
Any questions, just hit me up in the comments 🙂