Good and bad cryptocurrencies
The usage of cryptocurrency spiked in 2016, and more and more people around the world are investing into cryptocurrencies now. When it comes to cryptocurrencies, bitcoin is the most popular of all. But for newbies who want to try their hand in cryptocurrency investment, it is easy to get lost as there are tons of cryptocurrencies out there. The cryptocurrency market has even become saturated with “hype” coins.
Still 2018 is reported to be a great year for cryptocurrencies, a good time to start investing in it. So let me answer two of the most frequently asked questions about what cryptocurrency is worth investing in based on my experience as a long time crypto trader.
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What Makes One Cryptocurrency Better Than the Other?
Most crypto coins are good coins (except for some ICOs and brand new ones that turns out to be just scams). But that does not justify rating Litecoin and dodge coin same and rating EOS and Ethereum at same position. That is just very absurd.
And it’s not even about accumulating coins at low prices that makes them a good investment than the others. The fact is no one really knows how the market would go. So please be skeptical of anyone claiming one cryptocurrency is way better than the other because it’s low risk.
What I can suggest is for you to accumulate cryptocurrencies that have some intrinsic value. Have a look at Cryptocurrency Market Capitalizations like at CoinMarketCap. The coins near the top of their list in terms of market capitalization are generally well established and comparatively low risk.
What Cryptocurrencies Are Good and Worth Investing In?
The crypto space is always changing. So spreading your investment across the risk spectrum is recommended.
- Invest in the big crypto players like Bitcoin, Ethereum, Litecoin, Ripple and Tron.
- Pick a few slightly lower currencies and do some research on them. If you like them then buy and hold for a while. NEO, NANO, VEN, IOTA, TRX are worth a look.
- If you want to go the risky road in the hopes for higher returns, then look at some coins with a low market cap such as POE, SIA, NEBL, XVG, FUN.
- If you are new to crypto, you should avoid ICOs and brand new coins for now. Yes they can make you rich if you pick the right one but the risk level is off the charts and there are a lot of scams out there.
You don’t have to worry when stock markets are fluctuating because there is almost no correlation between the price of gold and stock markets. Investing in gold will therefore give you more assurance since the way to determine its price is in a completely different way than stocks which can zigzag any day any time. In fact, when uncertainty arises in markets, gold is where investors go to. No wonder it has traditionally been considered as a safe haven for investment.
Final Words
It is very difficult to rate cryptocurrencies for an investment. The reality is that nobody knows. Each cryptocurrency has its owns pros and cons. Actually the real question should not be about the best cryptocurrency. It should be about how much you know about different cryptocurrencies and theirs pros and cons and whether they fit your risk profile.
You should also realize that the cryptocurrency market is unregulated and there is a chance that you will lose all your investment. So don’t take very big risk and invest wisely. Otherwise, you may face big loss.
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