So someone posted the following question on this forum that I patronise:
I'm new to crypto and want to add some exposure. Have been hearing much about NANO, FTM, ADA, LUNA, AVAX, IOTA and SOL. if i have about S$5k, what should i buy + how much to allocate? Thank you!
This is the reply I posted:
You have to take my words with a pinch of salt because I have constructed my portfolio (BTC, ETH, USDC, Dogecoin) without forking out a single cent from fiat. It's not that I don't believe in crypto, but I need to top up my Supplementary Retirement Scheme first. Ya, pressing real-world financial needs beckon.
Anyway, this is how I will go about doing it.
TL;DR: I reckon you got to invest some time into learning about the various cryptocurrencies.
Now for the unabridged version
1) Get your skin in the game fast
I think you will feel most motivated about learning something foreign when you are actually invested in it. So the fastest way I can think of is to get a Coinbase account. This is because Coinbase has this Learn and Earn programme, in which it PAYS you some crypto after you answer questions correctly about some up-and-coming cryptocurrency. What's amazing about this program is that you don't have to do your KYC first. So this was how I got an easy $2 worth of Loopring. Since I have already decided to build a Dogecoin portfolio, I immediately converted this Loopring to Dogecoin.
Then, upon seeing how this Learn and Earn program is, I subsequently submitted my passport photo and got my KYC settled. Doing this allowed me to qualify for The Graph lessons. Easiest $5 dollars I have ever earned. Seriously. I watched some short videos and answered some easy questions. And yes, I instantly converted The Graph to Dogecoin.
So I highly recommend that you get a Coinbase account. You can either choose to hold on to these fairly obscure cryptocurrencies or immediately convert them to crypto that you are interested in.
2) Learn about crypto
For a start, I suggest that you bookmark Coinmarketcap (https://coinmarketcap.com/) as it details the prices of the top 10 cryptocurrencies as well as their market movements. This shall give you an idea of what cryptocurrencies to entrust your hard-earned money. So this was how I got over my cynicism about Dogecoin actually. Despite it being a sh*tcoin, it is always ranked among the top ten. Also, Gemini Earn program dishes out a higher interest rate for Dogecoin compared to Litecoin (which was a coin that I started out with)
If you wish to know more about ADA, Cardano recently organised a Cardano Summit and all its exciting webinars can be found on this website: https://summit.cardano.org/?utm_medium=email&_h...
As for me, I get my crypto news from Publish0x, which is a site that rewards readers and authors in crypto when they read and post articles on crypto. Honestly, the crypto they pay out is paltry but the community there is awesome as they share their insights about how to navigate the crypto space. So I am just gonna plug my ambassador link here so that I can earn 5% of every tip that my referees utilises. (Yes, every little bit counts, haha) (https://www.publish0x.com?a=pmbkZmw6az) .
3) Decide on your comfort level
I think it will be good for me to inform you that there are two main kinds of crypto: stablecoins and non-stablecoins. If you are dipping your toes into the treacherous waters of crypto, it may serve you well to invest in stablecoins first. Stablecoins essentially are backed by collaterals and are pegged to a national currency like the American dollar. So they are perceived to be less volatile than non-stablecoins because of the collateral backing. This is why our homegrown cryptolending platform, Hodlnaut, awards stablecoins like USDT and USDC higher interest rates than its other options (BTC, Wrapped BTC and ETH). So if you are just going to buy crypto and hodl it over the long term, stablecoins could be the way to go as they accumulate interest faster than non-stablecoins.
On the other hand, if you subscribe to the "high risk high reward mentality" and invest with money after doing your due dilligence, choosing one or several out of NANO, FTM, ADA, LUNA, AVAX, IOTA and SOL would be your preferred course of action. Personally, I want to get myself some SOL but I am putting this on hold first because my immediate goal is to accumulate enough USDC on Hodlnaut so that I can set up an account with Cake Defi and venture into the world of Decentralised Finance. so, all in good time for me.
All right, this is my two cents' worth. Have fun exploring and earning!
Would you count this as good advice? What kind of advice will you give?