How to choose cryptocurrency to invest?

This can be a tricky question, especially if you are a beginner and just starting to trade digital currencies. We all know about bitcoin, but considering its price reached $10,000, we think this is too much for average users. In this case, you need to find something that will be profitable in the next couple of years. But, how will you do that, if you aren’t a financial expert and you don’t have a sense for trading? Now you have a variety of choice and dozens of digital currencies available on the market. We are going to show you how to make the best decision.

24h volume

This time gap indicates how much value has been traded through a 24h period and it is expressed in USC and BTC. The higher the volume, the more established the base is. In this case, you should choose a coin that has at least $10,000 trading volume. This is a proof that digital currency is already traded and that there is a certain percentage of people who believe in this cryptocurrency. You can find online some successful stories of investors buying coins for a couple of cents, with a low volume and reached success, but these cases are rare.

You need to pay attention to pump and dump schemes. They are usually set by developers who but a large number of coins and later they sell it. This also means that price will decrease as well. But, if you look at the trading history, you can easily spot this pattern.

Coin liquidity

The coin liquidity is measured in volume and BTC. Some coins have a minimal BTC volume, which means, if you buy a couple of hundred of them, it can move a market in your disadvantage. To avoid this situation, you shouldn’t use exchanges that a low volume of exchanges.

On the other hand, the exchange can artificially increase the trading volume to attract more investors, who always look for higher liquidity. So, if you aren’t familiar with the exchange history, or you have chosen not such a prominent exchange, then you should pay attention to increase of volume and see if it matches the increase in price. But, why are exchanges doing this? It’s simple; they don’t want to lose clients and corresponding fees. Unfortunately, this problem also affects even larger exchanges, so you should pay attention.

Market capitalization and current price

If you want to determine the market capitalization, you just have to multiply the number of coins and current market price. However, this only works with the coins that have already been mined. Developers tend to make a lot of coins at the beginning, which can reflect the higher price, than the one in reality.

The current price of the coin is a perceived value, and you should never make a decision based on that amount. So, if you see a digital currency with a low daily volume, but has a high market capitalization, then it’s some form of manipulation, and you should stay away from it.

How to buy your first cryptocurrency coins?

We have an impression that 2018 will be the years if digital currencies. The new millions are being made as we speak and investors are interested in all forms of cryptocurrency, such as Ethereum, Bitcoin, NEO, Litecoin, Ripple, and others. This has become a modern-day gold rush, and many people have gone crazy over digital currencies. Now bitcoin is now worth thousands of dollars, which is an impressive amount. For coins that once worth a couple of pennies, now investors have made serious money.

Bitcoin might the oldest cryptocurrency, but it’s not the only one on the market. In fact, many people who are just starting with the trade are focusing their attention on Ethereum. This digital currency has had the most significant gain the previous year, and recently this has become the first choice for investors, considering the price of bitcoin. Ethereum is also one of the first cryptocurrencies that many major companies such as Samsung, Microsoft, and JPMorgan Chace supported. Considering that its price was only 12 dollars last year, now the price of Ethereum is a couple of hundreds of dollars. In this case, Ethereum is slowly but surely making the significant gain.

But, Ethereum is not the only digital currency you can trade, but, it’s definitely the most promising one. There are others that might spike your attention. But, you need to choose the cryptocurrency that has a future on digital market and in some cases, you will have to wait a couple of years until your investment becomes valuable.

How to purchase your first coins?

This procedure is confusing for the majority of people, especially if you are an average trader. The digital currencies aren’t stocks or a typical investment. Considering that this is a new form of investment, a lot of people still don’t have experience. In this case, you don’t get shares, but digital coins. A lot of experts think that coins are a better solution than paper money because they are supporting a more significant cause.

For traders who are living in the U.S. Coinbase is the most comfortable option to buy digital coins. Here you can buy Ethereum, Litecoin, and Bitcoin, but the platform doesn’t support other currencies, yet. Once you verify your account and choose the method of payment, which includes credit or debit card, U.S. bank account or wire transfer. In most cases, you need to verify your account with a driver’s license and this exchange doesn’t ask for your ID and once you make a transaction, you can’t reverse it.

On the other hand, if you are looking some other digital currencies, that cost less money, you can try with NEO, but it hasn’t made any significant progress. If you own Bitcoins or Ethereum, you can exchange them with any other digital currencies that interest you. If you are outside the U.S., you can try with other exchanges, but our advice would be to avoid Asian exchanges because no one will guarantee you security.

Four things to know before investing in cryptocurrency

A cryptocurrency is a form of investment that has taken the world by surprise, and now many investors are thinking about putting their money in coins. The most significant example we have so far is Bitcoin, which has reached the remarkable price in the last year. But, are you willing to risk and put your money in something that is unstable and one day it can go up, but the next day it can ruin you. So, if you are serious about cryptocurrencies, here are some things you should know before you make the final decision.

Why are digital currencies attracting attention?

Considering that we live in the era of digital revolution, it shouldn’t surprise us why digital currencies have become so popular and claimed the interest of investors. First of all, this form of investment is open to everyone and second, this is an entirely a new asset that has appeared on the market. Even though this entire situation might seem scary and it takes a lot of time and effort to learn the basics, the results can be remarkable and more significant than any other investment.

Why invest in digital currencies?

If we take the example of bitcoin, it seems silly that only one coin can be worth thousands of dollars. But, what makes it valuable? Bitcoins are scarce and useful, and there is a limited amount of them. If we compare it with gold, we know that it’s a valuable resource, but it’s very hard to find it in nature, the same thing is with bitcoin. This is the only reason why bitcoin is expensive, and there are only 21 million of bitcoins on the market. Now the price of bitcoin is around $10,000, which is a considerable amount if you are thinking about investment. But, you can choose some other cryptocurrency and start building your portfolio because many experts predict that digital currencies will be the future of world’s economy.

The price of digital currencies

There is no official price for cryptocurrencies, and they are set by whatever people are willing to pay. The price is generally shown as the cost of one coin. On the other hand, when you register with one exchange, they will let you buy any amount you want. But, before you make an initial purchase, make sure to research the market to find the best deal.

When is the right time to buy?

No one can tell you that because as with any market, nothing is for sure. If we compare the previous prices and values, so far, cryptocurrencies have only increased in price and at a very fast pace. You can use tools like Bitcoin Wisdom and Cryptowatch to analyze the charts compare the prices through history. Considering that digital currencies aren’t bound to any government nor state; the value can be unstable and depends on people who invest in them. In this case, you should find a balance and avoid investing when the price the highest.

Should you invest money in cryptocurrency?

In the last couple of months, a lot of people have started thinking about cryptocurrencies, ever since Bitcoin hit the roof and reached the price at almost $18,000. But, if you are an average trader, should you risk everything and put your money on the market? We all have been witnesses of a sudden Bitcoin crash, and many investors became skeptical towards cryptocurrencies. So, possible investment in digital currencies could be a right decision, but also it can be a significant risk. Considering that this market is still young, there is no yes/no answer, it all depends on your skill and wisdom. Having this in mind, we will try to cover some pros and cons.

How to invest?

If you are serious about cryptocurrency and you don’t want to buy, sell or trade, then we can present you a couple of options. If you are a beginner, you can choose between GBTC trust, which is sold on a stock market, IRA, or exchange broker, which allows you to buy and sell coins. Each of these options has its advantages and disadvantages. So, general advice would the to review them carefully before you make your move. Another thing to keep in mind is the safety of your money. No one can guarantee you the safe income; you can lose your funds tomorrow. In this case, it would be wise to invest only 1% of your investible funds. Keep it simple and easy in the beginning and later when you feel more comfortable, or you have more considerable knowledge about this topic, you can increase the investment. Unfortunately, the riskier the investment is, the higher the volume.

Pros and cons

Con – the cryptocurrency market has been volatile and Bitcoin can rise and fall hundreds of dollars on a day. Even though this shows that market can be unstable, it also gives us unlimited options because we don’t have a specific price. One the of the hand, are you ready to risk your money based on assumptions and assets that don’t have a particular value.

Pro – there is a significant advantage in investing in digital currencies. The cryptocurrency market is still young, and many investors are projecting the future prices that would ma

ke buying any digital currency as a great bet, regardless of what happens.

Con – so far Bitcoin is presented as the only long-term currency, and that trend can continue for some time, but we don’t know for how long. Investors can lose everything tomorrow because no one will guarantee them the price. For many traders, investing in coins is still a risky operation and not a safe bet.

Pro – even though, the cryptocurrency market is still in a bubble, this trend can continue for many years, and someday, coins can become an essential asset of exchange and even accepted as a mean of payment. Of course, not many investors are thinking about this options because they want to earn money now and think about the advantages and disadvantages later.

How to invest in cryptocurrency – beginners guide

Digital currencies have raised a lot of hype in the past year, and the world went crazy over bitcoin. But, many investors are still insecure, considering its sudden drop. But, again, the bitcoin and Ethereum remain the hottest investment because people are hoping they can earn big money. If you are one of them and you think you have a change with cryptocurrencies, then we present you the ultimate guide. We have drawn up a simple guide for you, and it is intended for people who are just starting with this form of investment.

What cryptocurrencies should you buy?

Until 2016, Bitcoin was the only cryptocurrency you could purchase, and if you wanted to invest your money in this type of trading, Bitcoin was your only choice. However, the situation on the market has changed, now the investors have a variety of alternatives. Even though, Bitcoin is still the dominant digital currency in this industry, in 2017 we got to experience its sudden drop, which cast doubt, and left many people in worry about its future. This is one of the reasons why traders saw a chance with other cryptocurrencies, like Ethereum. So, if you want to invest your money in digital currencies, you need to have your eyes open and listen to the online community because you have a lot of choices. Here are some possible selections: Ethereum, Ripple, Litecoin, Dash, Monero and many more.

How you buy cryptocurrencies?

A few years ago, it was a real nightmare to buy digital currencies, but nowadays, we have a lot of trading platform which provides such service. The easiest way to purchase cryptocurrencies is to go on an exchange. If you want to avoid paying for high fees, then you should but directly. In this case, you need to find a reliable exchange, open an account, verify your identity and make a transaction. What exchange you will use, will mostly depend on where you live and it’s always better to use an exchange that is physically close to you if something terrible happens. On the other hand, if this is not an option, then it’s better to use an exchange which is located in a stable country and has an excellent legal system.

Is there are a good time to buy?

When it comes to cryptocurrencies, there is no general rule when to buy them. You just need to find a balance because it’s not a good idea to buy them at the peak, but also, it’s not a good idea to buy them when they are crashing. The best time for this type of purchase is when the price is stable and at relatively low level. When the price starts to rise, you need to be strong and resist the temptation to sell your coins because that might be only a beginning. Take some time and follow the trading market, don’t buy coins right away just because you’re bored, or you want to invest your money in something.