A high number of people assume that investing in cryptocurrencies is no longer an attractive option and there is a bubble about to burst. It might be true some of the top coins of the moment will dive in the coming months.
Waiting in the wings though are several coins which have been developed to put right the problems that are associated with Bitcoin, Ethereum,and the other early front-runners.
When you look at the increases of the significant coins have made over the past twelve months should you trust something that can rise in value by that higher margin?
It would have been better to invest one or two years ago, or even five years ago when things were just starting. If that had been the case as many people did you could be sat on the beach somewhere with no need to read this article.
There is still so much potential in all the other coins which are coming to the crypto marketplace even Litecoin has not yet reached its full potential.
Before anyone begins investing in crypto of any description, they have to be aware that they can be highly volatile and in the near future anything can happen. To a certain degree they are unregulated,and with this hanging, over theirhead, there is a small chance that they could be outlawed, the is why you need a financial back up plan.
There is also the chance that an exchange where you have funds gets hacked and yours along with every other investor’s cryptocurrency gets stolen, or if you lose your wallet key.
The Reasoning behind Investing in Cryptos and Why not.
There are three reasons anyone should invest in a cryptocurrency these are as follows:
- You wish to hedge your bets against the fall of the dollar
- You support the social role that cryptocurrencies will play
- You understand the technology and like the concept
The reasons not to invest are:
- The FOMO effect – the Fear of Missing Out
How to choose Which Cryptocurrencies to Build Your Portfolio
BTC was seen as the only crypto to invest in, and to a certain extent, LTC was recognized as the next big coin. To a certain extent, some of your investment should be in Bitcoins as most other currencies are traded against this. For this reason alone for the near future, it is not going to vanish or should not lose all its value.
As this coin has lost some of its dominant standing in the market, other coins are creeping up in the rankings and taking market share. To build a good portfolio of altcoins is the hard part.
The first way to see the value of a coin is to check its market capital. This should only be used as a guideline that the currency is healthy and not as a basis to make an investment.
When choosing any coin, you need to see the value they bring to businesses and end users. Also the problems they are aiming to solve. A few things to check when doing your homework are as follows:
- A transparent technical vision
- And active development team
- A lively and vibrant community
Cryptocurrencies and How to Buy Them
The first thing you need to find is “Where can I buy cryptocurrency” that deal in the coins you have decided to invest in. Not all exchanges trade in smaller altcoins.
Secondly, you need a secure way of storing them which would be your wallet. A cold storage wallet is highly advised as then you can keep everything safe offline.
An exchange in your home country is highly advised as you have some recall if things go wrong.
Once you have a wallet and have signed up to an exchange where you are able to purchase your coins from (you should already have a BTC account which is funded), you have to decide the best time to invest.
If a coin is crashing, you should wait until it bottoms out. Catching anything that is falling can be costly.
A little advice here would be not to compare a cryptocurrency bubble with a conventionalbubble.
If a coin is up 10 to 20 percent, this is common for daily activity. A bubble might come witha coin being up 100% yet over the past we have seen figures of 1000% being the bubble point. All this is hypothetical as no one knows until it pops.
Second advice is to observe. You should never buy at the sign of a dip as these are often followed by another. You should also not rush to buy any coin at the thought it could explode. You have to do your homework before you decide.
It is the same when deciding to sell. Don’t sell too early as you think the price will crash, you are after all investing for the long term.
Storing Your Altcoins
As mentioned you need a wallet for your coins, yet if you invest in many you might not have a choice but to leave them on the exchange. Times are changing,and it all depends on the altcoins you invest in for where you can store them.
Which Coins to Invest in and Why?
When looking which cryptocurrency to invest in the first to check is NEO. This coin is known as the Chinese-Ethereum which brings a new algorithm.
This algorithm changes the proof of work/stake and uses the Delegated Byzantine Fault Tolerance algorithm which works by consensus. It can also work across multiple Blockchains and brings decentralized storage as a service on the network.
Second up is the pick of the pack. Skycoin will transform the internet and bring Net Neutrality back to the users from the hands of the ISP’s. This it is able to do when it works with its mesh network (Skywire) that is powered by dedicated nodes.
These are the equivalent of the mining rigs for conventional coins. SKY has no mining so transactions can be performed in seconds rather than creating a backlog on the network and the Blockchain.
Although it is still to enter the mainstream, it will bring a new internet and change how we connect and use the internet it also brings some of the highest security for the coin and also for the users who use the Skywire network.
Lastly is Cardano which is not a new coin. It is open sourced like many other coins and based on the Blockchain. It was also created by the co-founder of ETH.
This coin brings smart contracts in a much-enhanced form and a new proof of stake method. It also aims to bring more functionality to end users.
It can be a good investment, yet it still follows in the footsteps of the current leaders rather than introducing something new like Skywire and the coin very closely linked to it.