With the evolution of the economy, a lot of investments in alternative currencies are taking place. Cryptocurrency is one of them, and it has successfully drawn the attention of entrepreneurs, investors, the general public, and everyone out there. Undoubtedly, the best Cryptocurrency has caused uproar in online forums, media, and also in every financial meeting.
In 2018, as per market reports, the future of Cryptocurrency was forecasted to reach $1 – 2 Trillion. With that, the top Cryptocurrency will have powerful applications in various fields, starting from media to healthcare sectors. In 2009, with Bitcoin’s release, Cryptocurrency had taken a leap from academics to the world of virtual reality.
Cryptocurrency, popularly known as a digital alternative of traditional wealth, has generated various views amongst many investors out there. With the increase in the positive hype in Cryptocurrency, many people wish to know about it before investing. In this article, you will get to know everything before investing in the best Cryptocurrency.
What Are Cryptocurrencies?
Cryptocurrency happens to be a digital currency, created and managed through cryptography, which is an advanced encryption technique. In simple terms, it is a digital way of transferring and holding value online. No person or bank controls or is responsible for the Cryptocurrency list.
Specialists always debate about the innumerable Cryptocurrencies available in the market, but Bitcoin is known to be the established and the biggest one. After experiencing the third block reward halving in May, Bitcoin has experienced huge growth.
Cryptocurrency has given a fair chance to everyone to invest, as long as they have an internet connection and a Smartphone. New Cryptocurrencies are being created, as many people are using it to avoid transaction fees and quick payments. Mostly, the best Cryptocurrencyis used as an investment, where the value goes up.
Along with an investment opportunity, Cryptocurrency is also used as a medium of exchange. It is a secure way of transferring revenue from one person to another digitally without the involvement of any financial institutions.
If you do not have any plans for investing in Cryptocurrency, you need to know that 2020 is predicted to be the best year to invest. Looking at the growth, you should definitely look for the best Cryptocurrency to invest in.
Today 5000 Cryptocurrencies are out there in the market, but if you are still confused about Cryptocurrency investment, let’s bring to your notice why you should invest in this alternative currency.
Why Should You Invest In Cryptocurrencies?
It’s never too late for crypto investment, as the crypto market is quite thriving. A lot of money can be earned through Cryptocurrency, as long as you are investing correctly. Many aspects are there that you should be aware of about the future of Cryptocurrency, however, first, introduce yourself to the reasons for choosing this mode of investment.
Cryptocurrencies have been here for a short time, but they are more profitable than any traditional form of investment. They tend to show wide changes in the price over a shorter time, and such potential is hard to find with any other form of investment.
Simplicity in investments
If you wish to know how to invest in Cryptocurrency, you will come across ample information over the internet. Reading through the best content will make it easier for a beginner to invest in the top digital currencies. With that, there is no technical knowledge required to invest in Cryptocurrency.
So, to purchase various Cryptocurrencies, many digital wallets are available online; you need to keep a track of them. Both taking part and joining is quite simple, and you do not need the help of any such financial institution, or sign any papers for that.
A higher liquidity
The main aspect of investing in any asset is its liquidity, which means to evaluate if it would be easier to purchase and sell the asset close to the market price. The new Cryptocurrency has higher liquidity by nature, so you can quickly buy or sell them.
Any trading platform uses many high-grade tactics and tools to make the entire process simpler and easier, like algorithm-based trading, limit-orders, etc.
Retrieve your revenue any time
With the availability of the multiple online wallets for Cryptocurrency, keeping track of the list of Cryptocurrencies can be done comfortably. Thanks to the Cryptocurrency market, it works 24/7, which is why you can invest and pick your money accordingly.
Alongside this, it allows the investors to buy the Cryptocurrency stocks when they want to. As a result, it would be easier for an investor to avoid losses and make more profits.
The presence of blockchain
The financial market has changed to a great extent in terms of technology. With the help of Blockchain, not only can you track your transaction records, but the security has also increased.
Blockchain is here for the long run, as it has helped to maintain transparency and decentralization. To know aspects like the best time to invest in Cryptocurrency, whether it’s safe to invest in Cryptocurrency, Blockchain would be the best medium.
Compared to any financial institution, Blockchain’s security feature is an important aspect, which is why Cryptocurrency investment is a great choice.
Mitigate your risks
Do you know how many Cryptocurrencies are there? For your knowledge, around 5000 Cryptocurrencies are there, and you can invest in whichever you want to. By investing in the right Cryptocurrency, you can diversify your portfolio while mitigating your risks.
With respect to the traditional form of investment, digital currencies offer a lesser fee. With that, you can reduce your expenses, and instead of spending money on a third party, you can invest in Cryptocurrency.
No financial barrier
An essential aspect of Cryptocurrency is there is no minimum investment amount that an investor needs to maintain. With that, an entrepreneur, or a general person can invest any amount they wish to. It gives the flexibility to everyone to invest in the best Cryptocurrency.
With industrialization, everyone knows how digital currencies are gaining popularity, but still, many people out there are thinking about the best crypto exchange. Here are the major advantages of Cryptocurrency that they should be aware of:
In various forms of transactions, agents, dealers, or investors add complications, which otherwise can be done straightforwardly. The brokerage fee, paperwork, and many other aspects consume an immense amount of time.
But with the best Cryptocurrency, the transactions happen one-to-one, which means it happens between two people through a networking structure. As a result, there is no middle man involved in the entire process, leading to clarity while establishing audit trails, greater accountability, no confusion, etc.
Confidential and secured transactions
While investments are carried out through cash or credit cards, all transaction details are available as a reference document for the banks. But if you know how to invest in Cryptocurrency, you will have a bigger advantage.
The transaction occurs between two parties in a unique manner, done on a “push” basis. It means you can exactly say or do the things you want, and no other information is required.
It helps to guard the financial history while protecting your account from any financial threats. In traditional investments, the transaction details are exposed, and with that, there is a high chance of financial threats.
Cryptocurrencies are decentralized, which is a great benefit. Due to decentralization, the currency monopoly is kept free, and that’s why no other organization can get to know the coin value. As a result, it is a secure and stable way instead of traditional investments, which are controlled by financial institutions.
A quick way to transfer funds
Cryptocurrencies are an optimal and quick way of transaction, both with respect to the domestic and international markets. The reason behind this is it requires a short time to process as it has only a few barriers to overcome.
Cryptocurrency is also used to transfer money across borders where the transaction fees are quite low. At times, you do not need to pay any transaction fee and eliminate the need for a third party to do a transaction.
With time, the value of currencies gets reduced due to inflation. When a Cryptocurrency is being launched, it is released with a fixed amount, and the course code tells you the value of the coin.
Therefore, with the increase in demand, the value of the coin also increases, which will keep you protected while preventing inflation.
Ahead of your competitors
Businesses need to keep a close eye on the Cryptocurrency as it’s becoming more widely embraced. By investing early in Cryptocurrency, you would also have a chance to gain an edge over your competitors.
Accessible to international trade
Cryptocurrencies are not subjected to interest rates, exchange rates, or any form of transaction charges by a specific country. All thanks to the blockchain mechanism, which is why you can get access to international trade without facing any complications related to exchange fluctuations, etc.
What to Look for in a Cryptocurrency?
Investments are continuously rising in Cryptocurrency with 300% rise in Bitcoin. After the financial crisis in 2008, at least 40% of young investors are forecasted to invest in Cryptocurrency in the coming years. Yet there are some crucial factors to look for before young investors start buying Cryptocurrency.
Market cap or market capitalization
With 5000 Cryptocurrencies, media tends to project only the largest and best Cryptocurrency to buy from through market capitalization. Market cap reflects the company’s size, where the metrics is calculated, taking the asset price, multiplying it with the number of shares available.
It also provides insights regarding risk level in an investment, and that’s why it’s essential to check “a digital asset market cap” before you invests. Tokens with a smaller market cap show wild price springs, while a high market cap shows lesser vulnerability to manipulation.
Prepare an investment strategy
A common mistake done by the young investors is by joining a group, where investment tips related to a coin are discussed, etc. Make sure that whenever you are investing in the best Cryptocurrency, you avoid such things.
Unless you prepare an investment strategy, following such tips will be an uninformed decision, and it is the first step to lose your money.
Overcome the price drop
In the Cryptocurrency market, significant volatility exists, and you must not ignore that. An experienced investor is accustomed to big price swings, which you will never find in the traditional form of investments. By mentally preparing for the situation, an investor can overcome the unexpected price drop easily.
Do not place all your Crypto-coins in one basket
Diversification is the key when it comes to investment in Cryptocurrency. Similar to investing in multiple varieties of stocks, diversification in Cryptocurrency is also equally essential.
Understand the usage of hot and cold wallets
Cryptocurrencies can be stored either via an online wallet known as “hot” or by an offline wallet termed as “cold”. The ease of access to the wallet gives a more desirable option to a beginner to invest in Cryptocurrency.
Hot wallets are susceptible to being hacked, but a cold wallet cannot be hacked if you can handle properly. Most importantly, it’s better to store Cryptocurrency in a cold wallet if you plan to save for a long time.
Best Cryptocurrencies to Invest
Not all cryptocurrencies are going to give you a similar return on investment. This is why you have to invest in thorough research and choose the best cryptocurrency. Following is a list of 5 Best Cryptocurrencies To Invest Under $1.
This cryptocurrency competes, head-on with Ethereum. It enables you to efficiently create decentralized applications and connect with users through a sophisticated blockchain platform. Cardano is more focused on imbibing high-security protocols and providing utmost privacy to the users. It was launched in the year 2015. This ecosystem operates on its own cryptocurrency, ADA.
It is designed to be a reliable and fast mode of transfer. The platform is developed on layers, providing better flexibility in updates. It is managed by a community of tech-experts. Cardano has also collaborated with the University of Malta to provide different courses on programming languages of the network.
Crypto.com Chain is the Hong Kong-based payment as well as cryptocurrency company CRO Protocol Labs. The platform has its dedicated token known as Crypto.com Chain (CRO) token. It is designed to enable users to make cryptocurrency payments to as many international merchants as possible.
CRO is a basically ERC20 token on the Ethereum Blockchain. It is known for its consistent and incremental progress. Users can leverage many services including buying and selling of government money, a VISA debit card, trading exchange, automated trading, lending and borrowing, and a non-custodial wallet.
The Republic Protocol or REN is an open-source and a decentralized dark pool protocol. It allows traders to place orders in a secure and private manner. By leveraging multi-party computation, it creates a matching engine that crosses orders on the decentralized order book.
REN tokens are the native coin of this platform. These ERC20 tokens are used within the ecosystem in order to incentivize nodes to execute the process or order matching. The platform will supply a total of 1 Billion.
ELROND has been gaining a lot of traction lately. In just four months, the platform managed to pique the interest of crypto investors and traders across the world. The ERD token is designed to give back a substantial position of profit. The ecosystem is powered by ERD token, and it acts as the entry point. It is the means to facilitate transactions, storage, execution of smart contracts, dApp deployment, etc. The transaction fees in the network are divided between the Elrond Community Fun and validators.
Matic Network (MATIC)
The last but not least top cryptocurrency coin on our list is Matic Network. This project has been working on providing an effective solution for challenges associated with Ethereum’s scalability. It aims to address the issue with proof-of-stake sidechain.
Along with offering stronger scalability, it also contributes to lower transaction fees, quick authentication, etc. The Matic Network hosted an ICO on the Binance Launchpad on April 24, 2019. Through this token, the holders can become stakers and acquire staking rewards after its process has been implemented. With the increased usage of the network, MATIC token’s value is expected to grow manifolds in the future.
Cryptocurrency is decentralized computerized cash, where the money is being transferred from one client to the other on a shared network without a third party. There is no involvement of an administrative body or an international bank in Cryptocurrency investment.
The Cryptocurrency market is vast, and every day you will come across a new currency. Each Cryptocurrency comes with promises to turn the world around, and that’s where everyone wishes to know which is the best Cryptocurrency?
It all depends upon the Crypto market, and which Cryptocurrency is the best one to invest in. Therefore, before you start buying Cryptocurrencies, make sure you evaluate the market dynamics carefully.
Must Read: Top 5 Low Market Cap DeFi Tokens
Here are some common questions that every investor would like to ask before investing in cryptocurrencies.
Which Cryptocurrency is best to invest?
Cardano is the Best Cryptocurrency to invest, but before investing, it’s vital to study Cryptocurrency’s market cap.
What is the best performing Cryptocurrency?
The best performing Cryptocurrency is Cardano, which can change over the time depending on the market dynamics. However, it also has the ability to protect blockchains and crypto-coins from hackers’ interventions.