As all the activity around crypto-currencies builds it is key to remember they are just another part of an investment and trading portfolio. We live in a fast-paced and changing world but as the saying goes, "the more things change, the more they stay the same." Whether you are investing in widgets or crypto-currencies, you should always be diversified and know as much as you can about what you are buying. These are the best ways to shield yourself from losing your cash. You should also reserve a decent amount of cash on hand to be able to take advantage of opportunities when they arise. Just like the recent dip in Bitcoin that sent the rest of the market crumbling was due to someone dumping their holdings for personal reasons. These fluctuations in the market happen and no one knows when they will occur but having cash on hand gives you the opportunity to take advantage of the opportunity to build a strong position relatively cheaply.
Crypto-currencies are the biggest thing since the rise of the dot coms. There are a few of them that have become the standard bearers but many others are vying for position as well. What makes one more valuable than the other is based on supply, technology and notoriety. Bitcoin of course is the most well-known and has the fewest coins available. That is why it is the most expensive. The main drawback with Bitcoin is that the technology is not as nimble as the newer coins so you can probably consider it as you would a precious metal like gold. It's clunky and not as functional as cash. Some of the other coins have risen to meet that need like Bitcoin Cash, Litecoin, Ethereum, Ripple and others.
It remains to be seen who will reign supreme but it's a good time to pick up some of the top names just to get started. Don't use up all your reserves I would recommend only 20% of your portfolio at the moment but if you use the dollar cost average method of buying small amounts when the price is high and large amounts when the price drops you should be able to build a decent size portfolio of some of these crypto-currencies.
