a person put bitcoin in his jeans pant pocket

 

Bitcoin and Ethereum are the two biggest cryptocurrencies, but they’re not the only ones. 

There are hundreds of lesser-known alternatives, known as altcoins, that you can invest in to hedge your bets against Bitcoin and Ethereum’s volatility. Which cryptocurrencies should you choose? 

Here's our beginner's guide to investing in altcoins in 2018! (Hint: There’s no clear answer.) 

If you're just looking to make a quick buck, skip to Step 3 below for my recommendation of which cryptocurrency to invest in based on your situation; otherwise, read on!

What are cryptocurrencies anyway?

If you’ve been hearing more and more about cryptocurrencies, but don’t really know what they are, we can help. Cryptocurrencies are a form of digital currency.

 That means they are used primarily on internet-based platforms instead of physical bills or coins. So how do these virtual currencies work exactly? 

Let’s break it down: A cryptocurrency is made up of units called bits, just like regular money is made up of dollars and cents. 

The difference is that there are only 21 million bits in existence (compared to nearly 11 trillion U.S. dollars). Each bit has its own unique code—so while all bitcoins have value, each bitcoin itself has a unique identity too.

How To Start Investing In Cryptocurrencies

Step 1: Understand how it works. 

The most important thing about investing is understanding how cryptocurrencies work, and more specifically, how blockchain technology works. 

Try reading some articles on cryptocurrency and don’t be afraid to read through multiple sources if you don’t understand something. It takes time but it’s worth it—trust us. 

Step 2: Pick a coin or two (or three). 

There are thousands of different coins out there, each with its own unique features.

Is it safe to invest in crytocurrencies?

Cryptocurrencies can be extremely volatile and should only be used by experienced investors. If you’re new to investing, stick with traditional investment vehicles like stocks until you understand how things work and have a bit of experience under your belt. 

Investing is risky business, so only ever put what you’re willing to lose into cryptocurrencies. It might take years before you see any kind of return on your investment. 

While it’s true that there are ways to make money from crypto trading, most people would be better off putting their money into more stable investments. 

There are several reasons why cryptos are riskier than other investments: It’s not regulated: Because cryptos aren’t issued or regulated by any government or central bank, they don't have a set value like fiat currencies do.

Beginners' Guide To Investing In Cryptocurrencies

When people think of investing, they often think only of stocks and bonds. In recent years, however, a new type of investment has caught on: cryptocurrencies. 

You’ve probably heard about Bitcoin, but there are now several hundred different cryptocurrencies that investors can choose from, each with its own advantages and drawbacks. 

Whether or not you should invest in these digital currencies is another question entirely. To help you make an informed decision, we’ll walk through some of the pros and cons of investing in cryptocurrencies.

What Are The Best Cryptocurrencies For Investing And Trading?

This list is created with beginners and advanced traders in mind. Our picks are cryptocurrencies that have gained widespread adoption, so they’re easier to buy and sell. 

We also focused on coins with a reasonable market cap, generally ranking those with a capitalization of $100 million or more (however, we took a couple of exceptions when necessary). 

If we missed a coin you think should be included, please let us know about it in the comments.

Keep Your Coins Safe And Secure From Hackers - Here's How!

The best way to store your crypto is in a secure wallet, or as tech websites like CoinSutra call it, cryptocurrency wallet. 

Once you set up a crypto wallet on your computer or phone and put your coins inside, they’re safe. But, if your computer is hacked by a virus or hackers then they could break into your hard drive and steal everything. 

In that case, there are ways of getting those coins back but we’ll get more into that later.