Bitcoin has been around since 2009 and is the first and most well-known cryptocurrency.
However, many other cryptocurrencies have been developed over the past few years. These are called altcoins. Altcoins are ‘alternative coins’ that often have faster transaction speeds and provide other benefits.
Many people have been investing in altcoins after missing out on Bitcoin in recent years.
With many initial coin offerings at a low price, it can be tempting to invest in them. However, there are a few things you should keep in mind before investing in altcoins in 2022:
1. Learn The Basics Of Crypto Investing
The first thing you need to do is learn how to invest. This includes how you can buy the altcoins, where you’ll store them, and what investment option to choose, among other things. This is a crucial step because investing in cryptocurrency is a very complex process.
If you’re not careful, you can easily lose all your money.
Fortunately, many online resources can help you learn about investing in cryptocurrency. Find a trustworthy source and ensure you understand everything before investing money in altcoins. For example, this guide on investing in Ethereum from the team at Swyftx is a great place to start.
2. Research On The Coins To Invest In
Once you’ve learned about the basics of crypto investing, it’s time to start researching which altcoins to invest in. As mentioned earlier, many altcoins are available, and not all of them are worth investing in. Do your due diligence and research each coin thoroughly before deciding whether or not to invest.
Some factors you should consider include the team behind the coin, the technology, the use case, and the market cap. You can find all this information by reading whitepapers or doing a simple search. Also, you can follow news from crypto watchers to get the latest updates on which coins are worth investing in. However, always take their advice with a grain of salt to avoid falling for psychological mistakes such as fear of missing out.