Last time we talked about what to do with the Bitcoins that you earned. This time, we’ll be looking at Litecoins and Ethereum, two Altcoins that have become relatively mainstream. The questions are the same, should you withdraw them into cash since they’re less table? Should you convert them into Bitcoins or Altcoins?
Should I convert Litecoins or Ethereum into Cash straightaway after the 4.5 month waiting period?
Once again, the first thing to do is join an exchange, even if you don’t intend to withdraw cash straight away.
Now the question is, should you withdraw straight away? There’s no easy answer to it, while Ethereum and Litecoins has continued to rise, it may one day start falling. This means that you’ll see the value of what you mined rise faster if you keep it in this currency, instead of withdrawing it.
Should I convert Litecoins or Ethereum into other Alternative Currencies that are rising faster?
This is a very pertinent question. Assuming you have Litecoins or Ethereum and intend to keep them for a long period, it might prove to be far better to shift them to newer Altcoins that rise at a far higher rate. However, this is not something to do lightly. Altcoins are notoriously volatile and buying and selling at the wrong time can be a huge problem. We have an article on what Altcoins are and how to invest in them. Remember though, that Litecoins and Ethereum are more stable than most Altcoins, and Bitcoins is the most stable of all. Which leads us to the next question.
Should I convert Litecoins into Bitcoins?
In a word, not really. In detail though, the least risky thing to do would be to convert around 30% of your holdings into Bitcoins, 40% in your own currency (Litecoins), and then speculate with the remaining 30%, safe in the knowledge that your portfolio will rise overall no matter what
Should I convert Ethereum into Bitcoins?
Same answer as above. In a word, not really. In detail though, the least risky thing to do would be to convert around 30% of your holdings into Bitcoins, 40% in your own currency (Ethereum), and then speculate with the remaining 30%, safe in the knowledge that your portfolio will rise overall no matter what
As with Bitcoins, Litecoins and Ethereum also have sudden falls, and being an Altcoin, although a mainstream one, their falls are worse than that of Bitcoins. However, the same advice applies, don’t panic, they’ve been around for years, and won’t suddenly close
Just like with Bitcoins, there’s a lot of money to be made with Litecoins and Ethereum. The risk is higher, and so is the reward, and if you invest in our 40-30-30 formula, the rewards will far outweigh any risks attached to it