If you want to invest money in cryptocurrencies, always think about Bitcoin. It is tempting to go in altcoins and try to find the next gem with insane returns, but the reality is that it will be hard to find them and you are probably better off betting on a safe coin like Bitcoin. It will maybe not give you the insane returns anymore like it was in the past, but Bitcoin is the biggest out there and will be less risky than other altcoins. Bitcoin could be a hedge against your other altcoin holdings.
I remember my first investments in 2017 and 2018, they were all in altcoins and I forgot about Bitcoin. Why ? Because it seemed too expensive for me and I did not understand yet that it does not matter at all if you have 0,01 holdings of something or a 1000 holdings of something. It seemed to me that holding a 1000 XLM (this is an example, I will use XLM during this article) was going to be so much more profitable than holding 0,01 Bitcoin. What if XLM is going from 0,10 cents to 10 $ ? I do not see Bitcoin going from 20000 to 2 million ? That is wayyyyy too much for Bitcoin ! It seems much more realistic at first that XLM is going to 10$ rather than seeing BTC at 2 million. For new investors it is psychological. It is easier to deal in small numbers than in bigger numbers. Bigger numbers seem unrealistic and thus it seems more interesting to put your money in cheap altcoins (XRP at 0,22 cents, Cardano at 0,044 cents ! Cheap and I can get a lot of them !).
The reality is that you are better off holding at least a part of your portfolio in Bitcoin. How much that percentage is, is up to you, depending on the risk you are willing to take, but going in altcoins will be more risky than putting your money in BTC. Bitcoin is the oldest crypto out there, has the highest market cap since forever and most big investors (institutions, hedge funds, banks, millionaires and billionaires) will be in BTC because the biggest liquidity is present. For them it will be much easier to off-load a big amount of BTC than to off-load a big amount of an altcoin. The volume on Bitcoin is just higher than the rest of them. Bitcoin will often lead this market. When it goes down, BTC often moves down less than altcoins. When BTC moves sideways there are moments where it is time to shine a little bit for altcoins, but often altcoins move a little bit down. When BTC rises it often rises more than the altcoins. Obviously there are going to be altcoins that will pump harder, but in most cases BTC will outpace altcoins. So if you hold 0,01 BTC instead of a 1000 XLM, guess what ? You are actually making more money !
If you like altcoins (I know I do) you can try to go in some of them. Do not go in every single coin out there with very small amounts of money. Do your own research and try to think which of these coins can solve problems in this world and will have a good use-case in the global business world. A lot of altcoins are not going to make it and will disappear in time. A lot of them are scams and have no use-case or do not solve any problem. I personally think you should not go in more than 10 to 15 different altcoins when you have your portfolio. There are big cap alts like Ethereum, XRP, Litecoin, EOS, etc. that will be safer bets than for example DigiByte, OmiseGo, NANO, etc. (do not feel offended please, I am actually holding these coins as well, but it is just reality that bigger caps are less risky than smaller caps). I went in quite some altcoins and I regret it now that I know more about the crypto market. I would have rather put some more money in a small amount of altcoins that I really believe in, than to put small amounts of money in all kind of altcoins, which some of them I do not even know what they do or try to solve ! Most of the altcoins are way down in value as well, so the portfolio is not going to look all that pretty for now.
If there is going to be another big altcoin season you will see explosive gains in a small amount of time in altcoins. Often smaller cap altcoins will move later than bigger cap altcoins. These big seasons happen often when BTC hits its top in a bull market and bigger money is going to flow in altcoins from BTC to try to make extra gains. After this FOMO will hit the crowd and retail investors are going to pump the altcoins and then you will see the distribution happening where the big players are going to off-load their gains in the hands of the new retail investors that most likely do not understand what they are doing (that was me back in December 2017/January 2018 !). You are going to hold altcoins that are overvalued and you are most likely going to lose money. Watch out for this ! Try to teach yourself first how markets move and why they move the way they do and then you will be able to find out when it is a right time to buy-in (dollar cost average in as always !) and when it is not the time to buy-in (FOMO).
Try to put a good percentage of your portfolio in BTC, then move to bigger cap alts for a decent percentage (bigger caps for me are altcoins which have a market cap of 800000 or higher), put a small percentage in middle cap altcoins (these range from 100000 to 800000 market capitalization) and put a very small percentage in low cap altcoins (under 100000 market capitalization). How you want to put your percentages is up to you, it depends on your risk tolerance. An example could be to put 50% in BTC, 35% in big cap altcoins, 10% in middle cap altcoins and 5% in small cap altcoins. If you want to take less risk you can higher the percentages of BTC and big cap altcoins and if you like to take some more risks you can higher the amount of middle cap altcoins and small cap altcoins.
As always this is not financial advice and I am not a financial adviser. Do your own research and do not put in more money than you are willing to lose !