We’re talked about Bitcoins, Ethereum and Litecoin, but a lot of mining will be done on Altcoins. The question of a strategy in Altcoins is a lot more trickier than that with Bitcoins, Ethereum and Litecoins. Why? Because they may stabilize and become like Bitcoin, which, let’s not forget, was an alternate currency once upon a time. Or they may crash and leave you with something that has no value, despite being mined for years.
Should I convert Altcoins into Cash straightaway after the 4.5 month waiting period?
Join an exchange, and this is doubly important for Altcoins, since you’ll be converting them from one currency to another quite a lot. The cash question will have the same answer however, there’s no real excuse to withdraw money at the moment, because the value is rising. Withdraw what you need, or withdraw when you intend to stop the entire operation and just want the profit you earned that moment. Otherwise, keep the currency in Altcoins or Bitcoins or Ethereum by converting, but not in cash.
Should I convert Altcoins into Bitcoins that are rising slower?
We would recommend converting Altcoins into Bitcoins which are a lot more stable, but don’t covert all of them into Bitcoins straightaway. We’d suggest the 40-30-30 formula as we did in the Article on Litecoins. Convert 40% into Bitcoins as you mine, so that you know that you have a stable amount at hand.
Should I convert Altcoins into Litecoins?
It depends on the prospect of Litecoins as compared to Ethereum. If Litecoins is rising faster, or more easily accessible in your country, go for it. You need 30% of your holding here, because they rise faster than Bitcoins. You could even go 40-15-15-30, and have both Ethereum and Litecoins if you can handle it
Should I convert Litecoins into Ethereum?
It depends on the prospect of Ethereum as compared to Litecoins. If Ethereum is rising faster, or more easily accessible in your country, go for it. You need 30% of your holding here, because they rise faster than Bitcoins. You could even go 40-15-15-30, and have both Ethereum and Litecoins if you can handle it
There are times it’s okay to panic. Altcoins are nowhere near as stable as Litecoins, Ethereum or Bitcoins, and rise fast, and fall faster. So be careful with how you spend your Altcoins, and how you invest, and DO panic and switch to another currency if you see a steep fall beginning. Because unlike Litecoins, Ethereum and Bitcoins, there is a change that they will not bounce back from a fall. Learn your lessons from any losses and move on
Use the 40-30-30 formula and you’ll make more profits than losses. Don’t do this, and you may really find it harder to make a profit.