How to find the best Cryptocurrencies to invest in
We are living in the era of the cryptocurreny. To many, this offers a great investment opportunity. Cryptocurrencies and blockchain projects are achieving exorbitant worth around the world. The arrival of Bitcoin and its incredible rise over the last few years has resulted in people investing their money into this new form of currency by the millions. The market capitalization of Bitcoin and other top altcoins (cryptocurrencies besides bitcoin) has surpassed $500 billion in the last few years.
Why Invest in Cryptocurrencies?
Cryptocurrencies offers the chance of an exciting investment. These tradable digital coins promise to become commonplace in the next few years, with owners all over the globe. It is looking likely that future generations will be substituting the usual fiat money for cryptocurrencies in the next few years, changing the way that we look at money today.
Owning digital currencies means that you have already started on this digital venture. If Bitcoin ever replaces monetary reserves of central banks or becomes the dominant currency for international trades, the value of one Bitcoin has the potential to be huge. Like most things, the value of these digital coins fluctuates continuously, so investing is always going to be a risk. However, in general, the likes of Bitcoin is on the rise.
What Cryptocurrencies Should I buy?
Bitcoin used to be the only cryptocurrency available, and remained so until late 2016. If you wanted to invest in the success of digital currencies, you bought Bitcoin. It is only in recent years that altcoins have really come onto the market, and there are many available.
While Bitcoin is still the dominant cryptocurrency, in 2017 its share of the current crypto-market has rapidly fallen from 90% to around 40%. Many people saw this change coming due to the growing popularity of Ethereum and the ongoing rift of the Bitcoin community over the block size issue. If you are looking to invest in cryptocurrencies, it is important to listen to what others are saying to stay on top of the market.
Bitcoin is still a standard investment of every portfolio, but it is no longer the only asset. In every well-balanced crypto-portfolio you will find a variety of other coins such as Ethereum, litecoin, Dash, Monero, etc.
It’s recommended to always have a balanced portfolio. Many people’s strategy is to simply reflect the ten most valuable digital coins in your wallet.
How to Invest in Cryptocurrencies
As one of the most popular investment products currently on the market, lots of people are trying to get their hands on the Bitcoin or other digital currencies. Investing in this currency certainly comes with a good deal of risk, but it is something that people all over the globe are willing to go with. It is true that it may have been better to invest a few years ago, but there is still huge potential available in this market. If you are interested in investing, why not get started as soon as possible so as not to miss out any more?
Due to the fact that cryptocurrencies are largely unregulated, there are classified as a high-risk investment. There is always a chance that they will get prohibited or banned, that online exchanges will get hacked or even that you lose your own cryptocurrency wallet access.
What is the best time to buy cryptocurrencies?
There is no fixed time that is best to buy cryptocurrencies, however it is advisable to keep an eye on its value so that you don’t buy it when its value is going down. The best time may be when the price is stable at a relatively low level for everyone. You should use your initiative and maybe even get guidance from those that have invested before.
Looking back, many people held off buying bitcoin when its price was at $1000, or wouldn’t by Ethereum when its price was at $100. However, compared with their value today, this would have been the ideal time to make a purchase as since then, their value has significantly increased.
The problem with cryptocurrencies is their wild swings in price. It is not unusual to see 20% ups and downs in price within hours! It is hard to keep up. What counts is that the trend is on the rise, there are hundreds of new players being born every week, so the advice of many is to invest now.
Although it is difficult to pinpoint exactly when to buy cryptocurrencies, here are a few pieces of advice:
- Don’t compare crypto bubbles with traditional financial bubbles. 10% up is not a bubble but can be part of its daily volatility. 100% up can be a bubble, but often it is just the start of it. 1,000% could even be possible, but there is always the risk that this will pop and the value will drop dramatically.
- Take some time to watch. Don’t make any sudden purchases as soon as you see a dip, there is likely to be another. The best way to invest is to get to know and understand the market, and then make your decision when you fully believe that the timing is right.
How to store your cryptocurrencies?
After you acquired cryptocurrencies, the most important question where to store them. For this you will need a digital wallet, and these can come in both hardware or software forms.