Cryptocurrencies are one of the fastest growing markets in history. If the market continues to grow the way it is, it is likely to be a technology that is here to stay. Potentially, there is a lot of money to be made in investing in cryptocurrencies, but like anything in life, you should know what you are investing in, and do some research about the subject.
So before investing in any cryptocurrency, you should evaluate which is the best option for you and most importantly, before investing, consider the risks and room for growth.
First of all, you have to understand what you are investing in and don’t make any rash decisions. Spend some time reading about the different types available, and become an expert in the field. Once you have a grasp of what it is, the industry and the technology, then you can get started.
The golden question that arises is, which cryptocurrency should you invest in?
- The cryptocurrencies that are worth investing in are those with low prices that are not representative of its value. Let´s consider Omisego (OMG). This is a good cryptocurrency to buy because it boasts an impressive use case. Over 50,000 negotiators are already considering joining the platform as soon as the side of the user of the application is released, in the first quarter of 2018.
- Another example of a solid cryptocurrency is Bitcoin. Currently it is the best-known cryptocurrency, it has the largest market capitalization and the highest value of all cryptocurrencies. Its recent success has led this currency to the top of the market, making it almost invincible. When there are doubts in the market, people buy Bitcoins, so this might give you an idea of how stable this currency is. This is probably the safest cryptocurrency to invest in.
- On the other hand, Ethereum is also a very stable currency. Anyone who knows the market can predict that this coin is going to go a long way. Although it is not as well-known as Bitcoin, has an impressive technology. The potential of the blockchain is decentralized computing and information, and its objective is to build decentralized applications in a blockchain. Ethereum processes more transactions than Bitcoin and all other digital currencies together, and thanks to its contracts and ERC20 tokens, this is likely to continue in years to come. So as you can see, Ethereum represents a solid investment.
- IOTA is an exciting project that is trying to get established itself as a method of transaction between the Internet of things (IOT) devices. The IOT is a nightmare in terms of security. Computers and networks are hacked after posting through other computers, webcams, and routers. It is a very expensive problem that IOTA expects to solve, preferably before the world is introduced to smart refrigerators and driverless transport systems. What makes IOTA unique is its use of the DAG technology, or as IOTA likes to call it, the “tangle”. Tangle is a distant cousin of the blockchain. It has not been demonstrated, but there is an impressive team working on it, and the future looks exciting.
Some final thoughts on investing in cryptocurrencies
So, you have decided to invest in cryptocurrencies? Regardless of whether you choose to invest in cryptocurrencies as a retirement fund or if you want to do intraday trading, it may be many months before you are doing more than checking the graphics in order to see where the market is. Remember: the key is to pay attention to the graphics, get involved in the community. There will always be something new to learn.