If you had a million dollars to invest in crypto today what would you buy?
I would only invest 1 million dollars into crypto if I was forced to do it. It’s a lot of money and you could lose everything real fast in this crazy market. But let’s assume I’m a crazy guy and I do it anyway.
I would still use some basic investing rules. Diversification is important. But DCA or dollar cost averaging is even more important in the crypto world.
Splitting up the 1 million dollars into 10 separate parts of 100 000 dollars each is a good way to lower your risk. Let’s say we begin in January 2019. I would invest 100 000 dollars. Then I will wait until June or July to invest the next step which is another 100 000 dollars. I would repeat this process until I’m fully invested into the market.
My portfolio would consist of about 10 coins:
-Bitcoin
-ETH
-ADA
-ZEC
-NEO
-STEEM
-BNB
-VET
-BAT
-BTS
It is impossible to know which coin will survive and succeed but it is important to know that the best coins out there will not necessarily make it to the top. It’s guesswork. So it’s a good idea to diversify into different sectors.
We have privacy coins, stores of value, smart contract coins, social media coins, coins linked to big companies like Binance coin,…
I would invest an equal amount into every coin and hope for the best.