Cryptocoin Investments Compared and it’s easier than you think.
A day – or even an hour – doesn’t go by where there isn’t a conversation whereby cryptocoin investments compared goes on. From what I’ve seen cryptocoin investors fall into two distinct camps; active traders who will buy whatever John McAfee tweets about then sell it as fast as they can timed to make the most money they possibly can as fast as possible (the “pump and dump”) OR any other viable cryptocoin that they can buy low and sell high in the short term to make a profit. Then they move on to the next coin in the next minute or hour or day.
This active trader is playing an endless game where there is a never-ending pursuit of cryptocoin investments compared and analyzed to determine the next buy and then the next sale. This reminds me of day trading in stocks and I’m noticing that cryptocoin traders end up with a similar experience; you can have a great day or life can suck. How’s that for a dichotomy?
For the purposes of this conversation I’ll divide cryptocurrency investors into two distinct categories; intelligent traders and impatient traders.
The Intelligent Cryptocoin Investor
The intelligent trader will buy cryptocoin because he or she analyzed the fundamentals, perhaps read the whitepaper and likes everything seen. The intelligent trader will then make their purchase and watch their investment(s) like a mother hen watches her eggs. The intelligent trader isn’t intending to sell what he just bought but is prepared to sell if market moves are alarming and/or cryptocoin trends are working against their investment. As far as I’m concerned the intelligent cryptocoin trader will stick with proven staples like Bitcoin, Ethereum, Litecoin and other digital currencies that are firmly established and have a proven track record.
The Impatient Cryptocoin Investor
The impatient (maybe also impetuous?) cryptocurrency trader will always be on the prowl for the next big hit be it Verge or Ember or Ripple, etc. etc. to buy in, HODL just a little bit then panic and and sell the minute the coin drops by a penny or two. This disrupts the entire market for that coin and then the mob mentality prevails.
The impatient cryptocoin investor can make a ton of money one day and lose his shirt the next. The intelligent investor will make more money over a longer period of time. Long story short: Invest in the established coins and keep a close eye on your investments. Avoid all the other coins because they are too speculative and too volatile. As always, everything stated here is my opinion. Do your own research and soul searching and make the best decision that fits you. It all begins with cryptocoin investments compared side by side to give you the essential information you need to proceed as you see best.