5 Hacks to Identify the Best Cryptocurrency to Invest in
The Crypto Industry has performed remarkably well in the pandemic. Many lucky ones who have invested in Bitcoin at the time of its birth are millionaires today. Some just got lucky as their predictions about the crypto asset came true. On the other hand, some Crypto enthusiasts are still hoping to achieve some profit. Bitcoin is still a game player, but there are more than hundreds of other currencies in the market called “Altcoins” that are actually gaining traction faster than Bitcoin.
Choosing the best asset can be very challenging because a wrong decision can lead you to unwanted circumstances. Generally, when a new coin is introduced in the market, it offers the investors a chance to multiply their money ten times. But it is tough to predict which coin would attract more attention to the others. So, when planning to invest in the next big cryptocurrency, here’s a list of factors that can help you to narrow your search.
Price plays a vital role in determining a suitable cryptocurrency. Therefore, it is advisable to always check for the price of the token before investing. In the case of beginners or an average investor, a low-priced cryptocurrency is the best option to go for. However, it is imperative always to diversify your portfolio. Never invest all your money in one asset; rather, distribute it among other Altcoins.
During your research, always find the Crypto that is doing something different. For example, back in 2018, Ripple had made huge growth. But, it has declined since the start of the new year, yet it shows a strong potential for adoption outside the crypto world.
With the introduction of the Script algorithm in its blockchain, Ripple makes transactions faster and less prone to hacker attacks. Hence, the chances of people adopting Ripple soon could be high. If you can identify such a cryptocurrency with the edge over others, this may probably be a good investment.
3. Market Supply
The majority of the crypto-assets have a predetermined supply. When that maximum is reached, through mining, no new tokens will be produced. For example, there could be only 21 million Bitcoins in total, out of which only 20% are left to be mined. If the market interest in a particular asset remains intact while the number is fixed, the prices could shoot up. So make sure to consider the total supply and the current circulation before you invest.
Also Read: 10 Tips For Cryptocurrency Day Trading
Up-to-date information about all cryptocurrencies is readily available on the internet. Therefore, always collect information about trades, ups and downs, price and trading volume of crypto assets before committing. Those with increasing prices and volume of trades are likely to gain momentum. Of course, this momentum might fluctuate depending on demand and supply. But it is nonetheless essential to consider this factor to decide the best time to place a trade and when to get out of the crypto market.
A cryptocurrency should be capable of gathering a maximum amount of buzz with its intrinsic features. This buzz could be easily found in the Bitcoin Reddit groups or other social media groups of cryptocurrency. Just check which of the coins has the most followers and what people are talking about most.
Cryptocurrency Investing Tips
-Learn every bit about cryptocurrency
-Choose a RIGHT cryptocurrency exchange
-Learn about hot and cold wallets
-Plan a strategy
-Invest at the right time
-Diversify your Portfolio
Also Read: 8 Tips For Successful Crypto Trading
Cryptocurrency Investing Mistakes To Avoid
-Investing all the money you have
-Buying Just Because They Are Cheap
-Following the hype
-Trading with emotions
-Trading too Frequently
Also Read: How To Detect Crypto-Related Laundering?
Trading Crypto can be extensively beneficial if performed correctly. As the Crypto Industry is still in its nascent stage and highly volatile so a thorough research is significant, just like other investment plans. Always plan a strategy and trade according to your financial goals. Learn about various crypto-assets and stay updated with current news of the crypto market at CoinsCapture.
Remember: Cryptocurrency isn’t a get-rich-quick scheme. Instead, consider it a long-term investment.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.