Investing in cryptocurrencies could be a lucrative idea, but only if you know which the best cryptocurrency is. Frankly, with more than 1000 cryptocurrencies – and counting – it can be extremely difficult for investors to predict the one that can bring in more money. Some of those that are leading today might not be at the top in the next few years, 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 in a bubble very similar to that of internet and dotcom 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, 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 potential losers.
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’s a criteria to keep in mind?
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 just 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.
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 such matters, coins such as Dash, Bitcoin and Ethereum are doing pretty well.
If the cryptocurrency is not listed in majority of exchanges, it’s better to keep off. This could mean that it has not been discovered yet or simply that it’s slowly dying. If more platforms support the coin, then chances are that its value can potentially soar up.
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 do you aim? If it’s for short term profits, go for the coins that causing a stir in the internet currently. Go for the popular ones that record significant growth within days or weeks. However, if your intentions are to get good profits in the long-term, then we suggest going for coins with a promising future, regardless if their value is low or not.
Now here’s some tough reality for you: there’s no really single best crypto, considering the market volatility and the rapid growth of Blockchain and cryptocurrency world. However, there quite a number of cryptos that will come out as victorious, and which you should consider going for. Here are a few examples you should mull over:
Cryptocurrencies have provided a good opportunity for people to invest and ear some good money, but they come at a risk. While one coin might seem as 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. But with these tips, as well as information on promising coins, you could get your legs into the cryptocurrency world and make an investment. Who knows, it could be you way to riches!