How to Decide which Cryptocurrency to Invest In?
What should you look for in a cryptocurrency? As an investor new to the cryptocurrency market, you might be surprised to learn that there are over 1600 cryptocurrencies out there. The best cryptocurrency to invest in will depend on your goals, the qualities of the cryptocurrency, and the price predictions industry experts are making. For advice finding the right cryptocurrency for your investment goals, read on.
The Potential of Ethereum
There’s strong competition right now for the position of #2 cryptocurrency. Ethereum, Litecoin, Ripple, and others are all jockeying for second place according to market capitalization. Ethereum stands out from the crowd because it’s found a way to be different from Bitcoin. Ethereum is the cryptocurrency of choice for blockchain developers. ETH is a more advanced form of blockchain than Bitcoin and it’s being used to fund other blockchain projects. For those of you who want to invest in the progress of blockchain, ETH is probably the right pick for you.
Bitcoin Remains the Industry Leader
That said, Bitcoin remains the industry leader in cryptocurrency. Not only does Bitcoin have by far the highest market cap, it’s also seen as the leader in terms of cryptocurrency trends. Good days for Bitcoin are good days for cryptocurrency as a whole. Bitcoin has a whole lot going for it
- Bitcoin owns more than 40% of the total market share of cryptocurrency.
- Bitcoin is listed on every single cryptocurrency exchange.
- Bitcoin is in mainstream headlines nearly every single day, and often short-hand for the crypto market as a whole.
If you’ve been put off by last year’s price collapse, now may be the ideal time to invest. The bear market is coming to an end and BTC owners are feeling optimistic.
If you’ve never purchased Bitcoin before, find a cryptocurrency exchange that works in your country. A cryptocurrency exchange in the U.S. may be harder to use if you want to buy and sell Bitcoin in Canada, especially when there are local options that work with Canadian banks.
Invest in Cryptocurrencies with Added Value
2019 will be the year when the weak get culled from the cryptocurrency herd. It’s clear that 90% of cryptocurrencies are going to die off. Since the Bitcoin bubble, there have been hundreds of new cryptocurrencies coming online. When ICOs became such a successful way to fund start-ups and new ventures, it became har to distinguish useful new cryptocurrencies from scams. Everyone wanted to cash in on the crypto craze and many of them actually got away it. Now the chickens are coming home to roost, and only those cryptocurrencies that actually add value to the market are going to make it out alive.
The big names like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, and others aren’t going anywhere. But altcoins that offer the market nothing are going to wither on the vine, and the people who rushed into buy will pay the price. Be wary of any new ICOs if you’re looking to enter the crypto market for the first time.
No one can tell you whether or not to invest in cryptocurrency, but if you do, these are the factors you should keep in mind when you decide on a coin.