Choosing the Best Cryptocurrency to Invest in

in #cryptocurrency6 years ago

Investing in cryptocurrencies could be a lucrative idea, but only if you know which the best cryptocurrency is. Frankly, with more than 2000 cryptocurrencies (and counting on a weekly basis) choosing the best cryptocurrency to invest in can be extremely difficult. It is also very difficult for Investors to predict which specific one could bring in more money than another.

Some of those that are leading today might not be at the top of their game in the next few years, or even next month, while others might survive the competition and continue to grow in value.

If you look at the last six months or so, it’s quite evident that we are headed toward a bubble very similar to that of internet and dot-com boom. Just like Bitcoin has become a household name, there’s a good chance that others, some of which you’ve probably not heard of yet, will also triumph and grow in value significantly.

So, how do you know which is the best cryptocurrency to go for? What should you really consider? Well, here’s an Investor’s guide that covers some of the factors to keep in mind, a number of promising cryptocurrencies, and how you can pick the winners and avoid the potential losers. I must state that I am not a financial planner and these tips are provided only for information purposes. When choosing the best cryptocurrency to invest in, you must do your own due diligence before investing in anything.

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Choosing the Best Cryptocurrency to Invest in

As you get to the drawing table, you need to have a strong framework to help you select a good cryptocurrency to invest in. Here are a few criteria to keep in mind:

Does the cryptocurrency offer real-life use?

Look at the different coins in the market and you will realize one thing: some of them are used merely as a store of value, while others are entirely for different purposes, like decentralized derivatives trading.

Coins such as Ethereum and Bitcoin have been used almost exclusively as a store of value, but, we are seeing more and more organizations adopting them, with sites such as gambling platforms and other investment platforms accepting them.

This is what we are talking about; ensure you invest in cryptocurrencies that promise future use, not just some replicas of existing coins.

Does the network offer good security?

What’s the point of investing in a particular coin and then losing all your hard-earned cash just because of poor security features? There should be enough network nodes and a good system in place, ensuring that the Blockchain network has enough people at all times to remain decentralized.

And when it comes to choosing the best cryptocurrency to invest in, coins such as Dash, Bitcoin, and Ethereum are doing pretty well.

Is the coin available on many exchanges?

If the cryptocurrency is not listed on the majority of exchanges, it’s better to keep away. This could mean that it has not been discovered yet, or simply that it’s slowly dying, or it has not been accepted on exchanges for certain reasons.

If more platforms support the coin, then chances are that its value can potentially soar up.

Are you looking for a short-term or long-term investment?

In the investment world, whether in crypto or other areas, there’s one rule of thumb: you are either in it to make short-term profits or long-term profits.

What is your aim? If it’s for short-term profits, go for the coins that are causing a stir on the internet currently. Go for the popular ones that show records of significant growth within days or weeks.

However, if your intentions are to get good profits in the long-term, then I would suggest going for coins with a promising future, regardless of whether their value is low or not.

Top Coins to Invest in

Now here’s some tough reality for you: there’s not really any single best crypto. I say that based on market volatility, the rapid growth of Blockchain technology, and the cryptocurrency world. However, there are quite a number of cryptos that will come out as victorious, and some which you should consider going for.

Here are a few examples you should mull over, these are coins that make up a part of my current portfolio:

Bitcoin

When it comes to choosing the best cryptocurrency to invest in, anyone would agree that this is one of the undisputed leaders that has proven hard to dethrone.

With more and more people accepting it as a mode of payment, we could see it remain at the top for a lot longer. Bitcoin has five major phases when it comes to it its adoption; we are only in phase two, so there could be more to the growth of this coin than we think! Bitcoin was priced at $9,669.89 USD on the day of publication.

Ethereum

Many people argue that is one of the most important coins to put your money on for one simple reason: it will serve as the base of decentralized apps, also known as DApps.

You know how apps are the big thing these days? Well, it’s expected that DApps will be the next big thing in that space! For long-term investors, this would be a great coin to go for! Ethereum was priced at $834.32 USD on the day of publication.

Litecoin

Those who have dealt with Litecoin agree that this crypto manages to effectively tackle some of the problems that are holding Bitcoin back.

It’s not as innovative as Bitcoin or Ethereum but has good potential, and its value is currently derived from the adoption of users. More recently with the LitePay announcement and the FOMO about a hard fork, LTC has seen a spike in value. Litecoin was priced at $204.03 USD on the day of publication.

Waves

Most people have not come to hear about this cryptocurrency yet, but it’s starting to make waves in the industry (pun intended). It’s similar to Ripple, with the main differentiator being that it’s fully decentralized.

Just like Ripple, it makes it easy to come up with new coins for those using Blockchain technology, making it a valuable crypto for banks. Waves was priced at $6.51 USD on the day of publication.

Don’t forget – Invest only what you can afford to Lose!

Cryptocurrencies have provided a good opportunity for people to invest and earn some good money, but this does come at a risk. While one coin might seem like a good bet, it could lose value in future as competition increases, leading you to incur losses. Each coin has its own risks, and though it could guarantee some income, it’s always best to be careful and do some due diligence.

With these tips about choosing the best cryptocurrency to invest in, as well as information on promising coins, you could get your feet into the cryptocurrency world and make an investment. As the tide rises, so do all the boats in the harbor. Who knows, it could be your way to riches!

This was originally posted on my blog at TechMagy and shared here to add value to the Steemit Community.

Fore more articles in the cryptocurrency space, check out the following:

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