In 2009, the first cryptocurrency, Bitcoin, was released, and since then, this idea has only gained popularity. For many people around the world, investing in Bitcoin or cryptocurrency has been a life-changing decision.
Does the thought of trading in cryptocurrency excite you as well? Most cryptocurrencies are still in their growing stage; hence the odds of making a fortune are still there.
You can also use such currencies for trading to support the fundamental ideology behind this concept, i.e., currency decentralization. With cryptocurrency, you have the freedom to do many things. You can either buy Uber Eats gift card for your subsequent cravings or even shop online using cryptocurrencies.
The choice is all yours. At times of Bitcoin creation, one question needed an answer, “Whether you want to invest in this or not?.” At the time we are writing this post, more than 7500 cryptocurrencies are out there to choose from. This fact intimidates most beginners.
Considering the need for proper guidance, we did homework on your behalf and came up with this informative guide to pave the path for you.
In this thread, we will answer your questions by covering the following topics:
Buckle up your seatbelts for an eye-opening ride in the crypto world:
Table of Contents
Have you ever thought what was the need for cryptocurrencies in the first place? Although the popularity of cryptocurrencies has masked the real purpose, these currencies were made to be decentralized.
In simple words, decentralization means that any country or government can’t control these currencies. Hence, the authority remains in the hands of the people who own these cryptocurrencies.
List Of Top 3 Cryptocurrencies To Invest In:
Presenting you with many options at the start can puzzle your mind; this is why we are keeping the list short. The only purpose of mentioning these cryptocurrencies is to help you understand the process.
Without any further delay, let’s jump to our today’s picks:
Due to the meteoritic rise in its popularity, Bitcoin soon became the synonym of cryptocurrency.
It is best to start investing in Bitcoin as it is widely recognized and less prone to risks comparatively.
Although Bitcoin has seen many ups and downs in recent years, people have seldomly lost their investments. The coin that started at $0.08 has hit its highest mark of $65,000 in November 2021.
We recommend you to buy Bitcoin when the market is in the dip phase. When the market goes up back again, there are chances that you will make a good profit over your initial investment.
Second, on our list is the leader of “Altcoins.” For your information, Altcoins refers to the coins that debuted after Bitcoin. On that account, every cryptocurrency other than Bitcoin can be termed as Altcoin.
Etherium boasts the second-largest market cap of over $200 Billion. This unique cryptocurrency is famous for the flexible, decentralized platform it offers to consumers. If the idea of decentralized apps or NFTs fascinates you, then Etherium is the best option for you.
Though Etherium is susceptible to unpredictable blows in terms of market cap, you can invest in them as it holds comparatively less risk than Bitcoin.
Although the $13 Billion market cap of Litecoin affirms it as the seventeenth-largest cryptocurrency, its popularity says otherwise. A dedicated team, faster transactions, and a low mining budget symbolize a bright future for this coin.
At the time of writing, the whole unit of Litecoin costs only $267, which is massively lower than a single unit of Bitcoin or Etherium. So, you have less chance of market collapse and a better opportunity to earn well.
Factors To Consider While Choosing A Cryptocurrency
Cryptocurrency is much more volatile than other financial instruments like Stocks. Many factors such as the decisions of governments and even tweets of Billionaires directly affect the price of cryptocurrencies, as witnessed earlier.
Following are the factors that you should look upon before finalizing your investment:
● Level of Risk
Before stepping into the crypto world, ask yourself, “How much can you afford to lose?” To play on the safe side, choose stable currencies like ETH and LTC. According to such coins’ history, you might have to wait for a while, but you will make a profit eventually.
● Independent Research
Don’t fall for the fake promises of any random internet guru. Conduct thorough independent research on the trends, history, and future of any cryptocurrency. The study will help you acknowledge the whole process and minimize the risk of losing your investment.
● Initial Coin Offerings(ICOs)
When a cryptocurrency is launched, the company offers initial coin offerings to the investors directly. Keep an eye out for cryptocurrencies that are under the development stage. Check if the developing team is credible and their road map sounds promising.
Usually, investing in initial coin offerings is more advantageous than trading on the exchanges.
Beginners think that investing in cryptocurrency is gambling and a do-or-die game. But it’s a total misconception. It’s gambling when you enter the crypto world solely relying on your luck without conducting independent market research.
There are some popular and stable cryptocurrencies in which you can invest without worrying much about losing your investment. In order to grow, you must consider some crucial factors like the latest events, risk level, and ICOs.
Hopefully, after reading this article, things are a lot more clearer for you.