I intend to invest for a long term worth $ 500.
What coins should I choose and do I have to use all my money?
i think you should use 500$ to invest in Ethereum, holding altcoins for long term, 500$ is not too much to bring you big profit by investing Ethereum but it is the altcoins which has the most potential to rise more than 10 times in the future. so you can start to but some Ethereum now and hold for long term and keep buying to add more profit to your wallet in the future.