What is the best cryptocurrency to invest in? You’ll probably ask this question before investing in any of the digital currencies out there.
Some of the cryptocurrencies are gaining enough trust. Big companies like Wikipedia and Microsoft accept bitcoin payments. And with the look of things, investing in cryptocurrency can be profitable.
However, choosing the best cryptocurrency to invest in can be challenging. As a result, we’ll be discussing what you should know before investing in cryptocurrency and the best cryptocurrency you should invest in.
What is Cryptocurrency
A cryptocurrency is a digital currency that serves as a medium of exchange for services online which uses cryptography to secure all transactions.
Unlike paper money, cryptocurrency doesn’t exist in physical form, it can only be used online.
There are few thousands of kinds of cryptocurrencies. Bitcoin, being the biggest and the most popular was created in 2009 by Satoshi Nakamoto, an unknown person.
Other popular ones are Ethereum, Bitcoin Cash, Litecoin, and Ripple. You can exchange real money (paper money) for any cryptocurrency you want.
What Makes Cryptocurrency Different from Real Money
While digital currency and paper money serve as mediums of exchange, there’s a difference between them.
Cryptocurrency does not exist in physical form like real money. And it’s used as an exchange outside the control of the government.
Digital currency is a world currency. And investing in it means that you’re exchanging your money for any currency.
For instance, if you’re in a different country, you’ll likely go to a bank to exchange your money for the currency they’re using there.
But you can use cryptocurrency in any country. In other words, investing in cryptocurrency means that you’re exchanging your money in the country you are in.
Should I Invest in Cryptocurrency?
Oftentimes, most people ask if cryptocurrency is a good investment. Well, I would like you to know that it depends on how familiar you are with crypto and the level of your risk tolerance.
Some people consider crypto as an investment which is the reason they want to know the best cryptocurrency to invest in.
To be sincere, cryptocurrency can be a good thing to invest your money in. On the other hand, it’s one of the riskiest investments.
This means that you can earn a decent amount of money if you invest in cryptocurrency and also, you can lose money if you invest in it. In other words, investing in cryptocurrency can make you, and at the same time, it can wreck you.
If you can’t deal with risk, then investing in cryptocurrency isn’t for you. Although almost all investments carry a degree of risk, the one with crypto is just too much.
But if you have the money to play around with cryptocurrency, you can go ahead and try your luck.
Best Cryptocurrency to Invest In
In this section, let’s take a look at some of the best cryptocurrency you should invest in.
While there’s no rule of thumb for the best cryptocurrency to invest in, the best one that’s worth buying are those that have a large market cap.
See all cryptos I’ll recommend you invest in now below.
1. Ethereum (ETH)
Ethereum is a community-built technology that was created in 2012. Regardless of your location, Ethereum is open access to digital money for everyone.
It’s one of the most popular cryptocurrencies in the world. It’s only second to Bitcoin as the biggest cryptocurrency.
You can move money directly with someone else without government or any company approval. This makes it impossible for anyone to alter its operation.
There’s other stuff you could do with Ethereum. Most investors are already investing in ETH to earn profit.
If you’re considering investing in cryptocurrency, then Ethereum is one of the best cryptos you should invest your money in. It’s a long-term investment you should consider.
2. Bitcoin (BTC)
As we all know, Bitcoin is the first cryptocurrency that was launched in 2009 by an unknown person or group known as Satoshi Nakamoto. It is a decentralized digital currency that makes use of blockchain technology.
It allows for peer-to-peer transactions without the need for any third party. With Bitcoin, you can easily send payment to anyone in the world.
Although it takes a longer time than Ethereum (about 10 minutes) to execute transactions. Some companies make use of BTC as a means of payment.
The way Bitcoin fluctuates usually annoys some investors. For instance, its price in 2017 was around $19000 before it decreases in value to less than $10000.
However, while Bitcoin prices fluctuate so much, many investors still consider it as one of the best cryptos to invest in because of its large market cap.
3. Litecoin (LTC)
Litecoin was launched in 2011 by Charlie lee. It is a peer-to-peer cryptocurrency that also makes use of blockchain technology. And it’s identical to Bitcoin. However, Litecoin process transaction much faster than Bitcoin.
Unlike Bitcoin, Litecoin usually takes about 2.5 minutes to complete transactions. That’s 4 times faster than Bitcoin’s 10 minutes. And it will likely be adopted as a means of payment than Bitcoin. These factors, however, don’t impact the value of the currency.
If you’re asking, is Litecoin one of the best cryptocurrency to invest in? Then I’ll say yes. Considering its strength, Litecoin has proven to be one of the best cryptocurrencies to invest in.
4. Ripple (XRP)
XRP is a decentralized blockchain technology that was launched in 2012. It’s a digital asset built for payment. XRP can be sent directly without the need for a third party. Its focus is to unleash new utility for XRP and transform global payments.
Ripple is faster than Bitcoin, Ethereum, and Litecoin as it settles transactions in less than 5 seconds.
It’s made to improve the global economy. The low token price means that almost anyone can invest in XRP. It has high growth potential. And it’s also one of the best cryptocurrencies to invest in.
The above digital currencies are some of the best cryptocurrency to invest in.
What You Should Know about cryptocurrencies
All cryptocurrency values usually fluctuate since market prices are based on supply and demand. Bitcoin price in early 2020 was around $10000 before a hype to its current price, for instance.
You can make profit with any crypto as any of it can have a price surge at any given time. And knowing when you should buy given crypto is the trick to making profit.
However, there’s no pattern at which a particular cryptocurrency value goes up and down. As a result, no one knows the best cryptocurrency to invest in at any given time. And this is one of the reasons why investing in cryptocurrency could be risky.
You probably would have seen some sites give predictions about cryptocurrency, you should know that it’s just a prediction. The truth is, no one knows exactly when particular crypto will increase in value.
If it’s easy to know cryptocurrency to invest in at a particular time, everyone will be rich.
Why Invest in Cryptocurrency? (Pros)
Below are some of the reasons why investing in cryptocurrency is probably worth it.
- Cryptocurrencies are decentralized. This makes it easy to transfer funds directly without the need of a third party, it’s only the sender and the receiver.
- Investors stand the chance to earn good profit from the crypto world. The reverse is also true, though.
- Cryptocurrency has the potential to preserve value against inflation.
- Investing in cryptocurrency is secure. There is encryption to protect all the transaction from hackers.
There are number of reasons why you should dive into the world of crypto.
If you’re curious about investing in cryptocurrency, you ought to have a basic understanding of how it works to know the best cryptocurrency to invest in at a particular time.
Investing in Cryptocurrency (Cons)
While most investors already consider cryptocurrency as a good investment, here are some of the facts I don’t like.
- Cryptocurrencies are too volatile. Their price can increase or collapse at any time. As a result, cryptocurrency seems to be an unreliable investment. There isn’t any proven rate of return. This is one of the reasons most of the top millionaires don’t invest in cryptocurrency.
- It’s not regulated. The technology is not under the control or supervision of the government. This means there will be an increased risk in investing in cryptocurrency.
- Cryptocurrencies can be used for illegal activities. This is one of the shady things in the crypto world. It can be used for fraudulent activities due to the fact that it’s not regulated. And it’s no more news that criminals are using the technology for illegal activities such as money laundering.
Since cryptocurrencies are not regulated by the government, any of the assets can disappear.
There is no assurance that any cryptocurrency will remain for a lifetime. Even Bitcoin, Ethereum, and other popular cryptocurrencies are not an exception.
So, before you invest in any cryptocurrency, you must know what you’re doing before investing.
However, cryptocurrencies offer many good kinds of stuff that people seek in a currency. And it’s most likely here to stay because of its decentralization, transparency, and flexibility.
As a result, investing in cryptocurrency shouldn’t be a problem.
Bitcoin, Ethereum, Litecoin, and Ripple are the best cryptocurrency to invest in right now. But then, it shouldn’t be your primary investment.
Best Cryptocurrency to Invest in Final Words
cryptocurrency will continue to be a risky investment until it is widely adopted. And choosing the best cryptocurrency to invest in depending on your risk tolerance level and the one that best suits your needs.
As I said earlier, cryptocurrencies are volatile, and there’s no guarantee that a particular crypto, no matter how popular, will increase in value at any time. As a result, you have to be careful about how you invest in cryptocurrency so as not to put your financial future at risk.
Although you can make a decent profit if you invest in cryptocurrency, you need to be smart when dealing with digital currencies.
Which do you think is the best cryptocurrency to invest in? Share your thoughts in the comment box below.