What Coin To Invest In?

Again and again the question comes up: What coin to invest in? The answer depends on a lot of variables: How much do you want to invest? How long until you want to see returns? How much risk? What returns do you expect? Do you expect to withdraw at any time?

For example, you have $1000 you want to put away for a few months. Here is an example invest advice:

How much $1000
How long 6 months
Risk Low
Returns 200%
Withdraws Yes

Take the “low” risk with context. Crypto currencies are high risk in general. So only invest money you no not need. With “low risk” my advice is restricted to the more established coins.

Similar the “withdraws” restrictions means we want to see a steady rise in value instead of a gradual decline with random big jumps.

The 200% return means a pure Bitcoin investment is not desirable. While it is the most secure investment, it does not offer such returns in 6 months. We need to take more risk to do this.

A $1000 investment is small enough that the established coin markets can easily take it. Liquidity is not a problem.

Finally, my advice: $500 in Bitcoins, $500 into Dogecoins.

For a $2000 target, Bitcoin has to rise by 30% and Dogecoin by 170%. As Bitcoin took some beatings the 30% are a safe assumption and I think it will be more. However, this is only the safety net to lower the risk. The big returns must come from Dogecoin, which is going strong and there is no sign of stopping so far.

Disclaimer: If you change any of the inputs the advice would be different! The answer might even be very different next week! There is a significant risk to lose everything! Do not listen to investment advice of random people from the internet!

2 comments

    • qznc

      In short, I am quite sceptic. Their only difference is this coinjoin privacy feature, which is in alpha state right now. Even if it works as advertised, it might not be enough to differentiate the coin from the rest. Well, maybe it becomes the currency of choice for drug lords. Short term it has potential for some action.

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