Bitcoin is a digital coin that has value. Bitcoin is not owned by a central entity such as a government or a central bank, in other words, it’s decentralized. It is easy to operate and can be sent quickly and securely from any point in the world to another.
In 2009, the first Bitcoin was mined by someone nicknamed Satoshi Nakamoto. There are still disputes over who Satoshi is. Ever since then, the open source project has been accumulating many users and enthusiasts who have contributed their time and efforts to developing and distributing the bitcoin around the world.
Bitcoin has 8 numbers to the decimal. The smallest amount is 0.00000001 Bitcoin and this unit of measurement is called one Satoshi. It is better not to send such a small amount because the transaction fee will be higher than the amount sent.
During the summer of 2010, when many had doubted the concept of Bitcoin, one of the early adopters named Laszlo Henitz tried very hard and succeeded in ordering pizza and paid for it with Bitcoin. In those days, Bitcoin was worth nothing (cents) and to order two family pizzas worth $ 30, Laszlo paid 10,000 Bitcoins! What was later considered as the first ever purchase in Bitcoin, became also the world’s most expensive pizza. 10,000 Bitcoins worth today is worth more than 25 million USD.
That has to have been the most expensive pizza:
That has to have been the most expensive pizza:
Currently, there are so many ICOs that my head is spinning. I find it hard to choose projects where I can invest! That’s why the major part of my long-term portfolio consists of coins that were created before the initial coin offering craze.
First of all, before we go any further let’s try to understand what kind of cryptocurrencies we have on the market. As you may already know, there are 3 different types of Cryptocurrencies.
1. The first type is the Bitcoin and its forks. This type of cryptocurrencies has the only function, transfer of value from one wallet to another. That’s pretty much it.
2. The second type of cryptocurrencies is distributed computing cryptos. Ethereum is an example #1 here. With the help of Ethereum virtual machine, you can create smart contracts that will forever change the way our economy works soon. Other examples include Golem, Storj, SONM, and other interesting projects.
3. The third type of cryptocurrencies, privacy coins. Stellar, and Monero were born because people understood the necessity of this kind of coins. Government tries to regulate and censor cryptocurrencies. Crypto enthusiasts look for other ways to keep government off their digital money. That’s where demand is.
Do you know the difference between tokens and coins?
Coins or cryptocurrencies are used to exchange. You transfer value from point A to point B. That’s it.
Then we have utility tokens. They are used to power platforms. On the platforms, you can buy different services using this utility token. Tokens are compared to API keys that give users access to services.
There exist a well-known Maslow’s hierarchy. Well, I have created my own, CryptoPortfolio hierarchy for my long-term portfolio needs.
First of all, we have a foundation. It should consist of the most solid cryptocurrencies. This kind of cryptos should be able to survive the pressure of time. Is it hard to predict what cryptocurrency will survive from 2–5 years? It is not hard, it is impossible. Here you can only use the judgment of the best experts in the industry and try to conduct your own research. Even after everything, there is no certainty that this “foundation” coins will not disappear in a year.
Then you have to choose the middle part of your pyramid. Usually, I pick cryptocurrencies with their own blockchains. For example, Tron, IOTA, Ripple, other privacy coins. Also, do not forget that Ethereum soon will adopt privacy feature of ZCASH.
Tokens go next. I choose them last because I expect A LOT of utility tokens to fail. Even considering this possibility of every token’s failure, I still chose to hold a very limited number of tokens. I will show you them on the next slide. This part shouldn’t take a lot of space inside your cryptocurrency long-term portfolio. try to buy the best ones and hold. I don’t recommend going on shopping sprees in the sphere of initial coin offerings. It is not dangerous for your long-term portfolio, it is suicidal.
What coins and tokens should be chosen for long-term portfolios? The ones that will survive and be lucrative at the same time.
The first cryptocurrency for my portfolio is Bitcoin.
Ether goes next. It will be the major part of my long-term portfolio reaching 50% of my crypto stack. This coin here to stay even though it is riskier than Bitcoin due to its complexity.
Monero and Stellar are also important for my long-term portfolio. Both cryptocurrencies showed its resilience to hacks, different conflicts in the community, and competition. The next step of our governments in the cryptocurrency sphere will be regulation. Thanks to this, all transactions will be audited and all your activities will be analyzed.
To start with registered in Koinex (Indians) or your local exchange. I suggest you buy Ripple as it has less transfer fee. Then move it to your Binance wallet. Sell it there for BTC. From BTC you can buy
TRON, Monero, Stellar, Neo, NEM and any coin you feel has some future. If you don’t properly research, you might wake up one morning to see all your coins vanished…!
Tech analysis considers the history of a coin with price charts and trading volumes, no matter what the coin or project does. As opposed to technical analysis, fundamental analysis is more focused on establishing if a coin is over or undervalued.
When considering entering a trade, it is not recommended that you only rely on technical analysis. Especially in the field of crypto, a field that often generates news, there are fundamental factors that have a significant impact on the market such as regulations, ETF certificates, mining hash.
Market Analysis Reference:
[1] CoinDesk
[2] TradingView
[3] CoinTrackr
[4] AltPocket
[5] TokenMarket
Nithin Sai-(Serial Entrepreneur)
Mobile: +91-9656210077