Crypto is a lot more than Bitcoin or Ethereum, and experienced crypto investors know about it. Of course, just trading in Bitcoin and Ethereum can make you more money than stocks or other investment vehicles, but there are a lot of opportunities in the crypto space than the BTC and ETH.
So if you just stay stuck with only the BTC and ETH, then that's an indication that you are missing out on a lot of action! But does this means that one should go out and buy just any cryptocurrencies? Well, to pick a good cryptocurrency for investment, you will need to perform a proper search first!
Why Look At Other Cryptocurrencies?
When we talk about a crypto asset, let's make one thing clear: Not all of them are made to be used as a currency! Some are made for decentralized finance and even for launching smart contracts. Each crypto asset will be different than the other, and that's what makes them so unique.
One of the main reasons why you should look at other cryptocurrencies is volatility. If you think that the volatility in BTC and ETH is high, then you should look at mid-cap or small-cap cryptocurrencies to look at the true meaning of volatility.
While you may get 20% or even 30% moves in the big cryptocurrencies, it is common to witness 100% or even 200% moves in small or mid-cap crypto assets!
Building A Balanced Crypto Portfolio
A good crypto portfolio will contain sizeable investments in all types of crypto assets (large-cap, mid-cap, and small-cap). Just like it is not a good idea to put all of your money in one stock, it is also not a good idea to put all your money in one crypto asset.
Try to find good cryptocurrencies by looking at their market cap, price history, and reading their roadmap. The crypto projects which have a clear vision and roadmap for the future along with well-reputed team members usually have a good chance of increasing their value!