Alright, so you’re not keen on Bitcoin, but see the validity of that type of currency. Maybe you’ve read about Litecoin and its better mining protocol. All it takes to get in on all of them at once is $500 and a little of your time. Or better yet, you can use the absolutely free method- coming soon!
So what would you do with the $500? First you buy about 0.7 BTC. Transfer it to Cryptsy or another exchange.
Keep 0.5BTC. Best case scenario Bitcoin becomes king and you have at least the equivalent of 1 million dollars.
Use the other 0.2 to purchase an assortment of other worthy crypto coins. 2 things to consider: how many coins there are currently, and how fast they get issued. For instance, right now there are twice as many Litecoins as Bitcoins, but eventually, there will be 4 times as many Litecoins. Basically if you want to own as many of the others as you do your 1BTC, buy about 0.05 worth of Litecoins and spread the other 0.15 on the other coins listed on coinmarketcap.com.
You are then covered, any of the front running 40 or so currencies succeeds, you’re on board early with a sizable stake. If you don’t trust Cryptsy, do what I did and store much of what you bought locally where you don’t need to trust a website.
Of course this doesn’t account for the introduction of new and better coins, but its hard to image how anything could be better than what is already offered. Tons of innovation and variations already out there. . .But say there’s a new government backed crypto right? A government issued crypto currency won’t be a new currency at all, but a different rendition of something that already exists. The crypto USD would just be more USD, like bills printed on a new type of paper. A bank issued crypto would also only have an advantage over P2P if the bank offered to back up its value somehow (gold, paper or property). But again this would only be a new format on an old system of value- not a new currency.