Since the creation of Bitcoin, literally hundreds of other cryptocurrencies have been created using blockchain technology. Each new cryptocurrency builds off the strengths of the others, therefore are constantly being improved over time. The outcome of this is that the potential of blockchain technology has skyrocketed, with each new digital coin offering a little something different.
Although there are many popular cryptocurrencies out there, such as Bitcoin, Ethereum, Lisk and various others, sometimes the very best cryptocurrencies out there to invest your money in is not necessarily the ones that are the most well known. Usually people have more trust in the older coins out there, but it might be time for people to start giving the new cryptocurrencies a chance.
How to Invest in Cryptocurrency
Before you get started with looking into which is the coin for you, it is important that you first understand the process of investing. The decision about investing is not one that should be rushed, you should do your research and fully understand the losses that could be incurred. Before making your decisions, you should speak to an expert in the field and carefully consider questions like how much you are willing to invest, how soon you want to see potential gains and what the risks are.
There are two different types to choose from, you can either chose to make a long term or a short term investment. Long term is where, after your purchase, you keep hold of the coins for a long time and see where the market goes, or you buy it and sell it quickly. The decision depends on what you want out of the investment and what coin you decide to invest in.
The Best Coins to Invest In
Ripple is arguably one of the best coins to invest in this year, because although it has a relatively low market, it has a lot going for it. The fact that it is low in price at the moment could mean that it is a good time to invest, because as soon as its price starts to rise, that means that you will be in profit. The reason Ripple has a lot of potential is largely due to the fact that not only can it be used as a digital coin, but it also a means of making a payment, plus it is very, very fast.
Already, some of the biggest financial companies in the world have already started to use Ripple in their business, for example American express, JP Morgan and the Saudi Arabia Central Bank. If they have invested in Ripple, then why shouldn’t you?
Although previously we stated that new coins might be more investable than the older, that doesn’t mean the old classic of Bitcoin should be completely ignored. True, its price has been better, but it is still regarded as one of the best cryptocurrencies in the world, and it doesn’t look like it is going anywhere any time soon.
Although Monero is gradually getting its name out there, it is still one who has not shown its fully potential to the cryptocurrency community. People who are currently investing n Monero love it because it is so private and secure, using the ring signature for completing transactions that not many other coins use. It certainly stands out due to its many unique features.
This digital coin is a little more obscure and many people may be confused, thinking that Steem is simply a blogging and social media platform. More recently however, the company have decided to venture into the world of cryptocurrencies. The idea behind the coins is that they are awarded when users are carrying out day to day activities such as writing comments and blog posts, then the tokens are able to be used to purchase other things on the Steem platform.
IOTA is a very investable coin because it is completely free to use, and this tends to attract people to it. This is achieved because it uses special Blockchain architecture which allows for transactions to be made on the IOTA platform. Additionally, people may choose to invest on it because it has the backing of many large firms already, such as Microsoft and Fujitsu.
Litecoin could be described as a coin that it pretty much Bitcoin, but better, as it doesn’t come with the crazy costs like Bitcoin is known for. Sure, the coin has seen its fair share of highs and lows recently, but it is still proving to be extremely popular. Back in 2017, the Litecoin completed a Lightning Network Transaction, which means that the transaction was completed in just one second, an event that really triggered some serious interest in this coin.
This is a very new coin on the market, but already it has already covered some serious ground. The company keeps potential investors interested by releasing regular statements about their future plans. Its other benefit for many is that you are able to make transactions with a certain level of anonymity.
There are a huge number of other investable cryptocurrencies out there that should also be taken seriously into consideration, but here you have a solid few to start off your research. Choosing the right coin for you can be a long and complicated process, but it is definitely worth putting the time in in order to get the best results possible.