Some people consider cryptocurrencies to be fantastic, while others make them a source of income. They are the ones who actively invest in digital coins and make good money on it. You will also learn about the possible risks and results, as well as the most profitable assets for investment.
How to choose a cryptocurrency for investment?
If you decide to invest in cryptocurrencies, then you must first select a coin to buy. Naturally, knowledge of the blockchain, the ability to create wallets and the correct conduct of operations are indispensable. However, there are a number of indicators that will help you understand the prospects of a particular asset. Here they are:
The popularity of the coin in the crypto community. If the trade designation of a cryptocurrency is found on many well-known exchanges, and authoritative publications publish news from developers, then with a high degree of probability you are dealing with a promising project. These tokens are fairly easy to buy. Moreover, the chance of “flying” with such a coin is minimal;
Convenience of turnover. Large projects offer several options for crypto wallets. In addition, many third-party developers offer multi-currency vaults with support for well-known coins. Therefore, everything is important to have a place for safe storage (preferably a physical device);
Thus, many well-known coins with the Proof-of-Work algorithm have sufficient power to prevent a 51% attack. In the case of a different consensus mechanism, a scheme for protecting the network from unscrupulous validators must be carefully thought out.
Some investors may claim that many tokens meet these criteria. However, it is not always possible to take the developers’ word for it, and without proper knowledge, an ordinary investor will not be able to understand the technical nuances. Therefore, the question remains: which cryptocurrency to buy?
Attention! Particular attention should be paid to coins that have been on the market for more than one year. They have certainly proven their ability to compete with other assets. In this regard, Bitcoin is often considered – the most valuable and well-known cryptocurrency, which over 10 years of its existence has become a kind of digital money standard.
Cryptocurrency mining
So, you can mine coins at home on your own equipment, and then withdraw money to a wallet or crypto exchange for further actions. The minimum cost of a mining farm starts from 2-3 thousand dollars. However, the payback of this venture is minimal, since industrial mining of cryptocurrencies has gained momentum.
There is another option to get digital money – cloud mining. There are services that offer to rent computing power for mining coins. However, it is worthwhile to approach the issue of choosing a site with caution, since you can quite run into a scam. You can read reviews about cloud mining services on large forums or on social networks.
Purchase on the Binary exchange
In addition, there is an opportunity to purchase promising cryptocurrencies on the trading platform, and then leave the coins for a long time or invest in other assets.
One of these exchanges is Binary. This platform offers a comfortable environment for the profitable purchase of cryptocurrencies. The intuitive interface allows you to quickly acquire coins.
What to look for before buying cryptocurrency
The best cryptocurrencies from the top 10 in terms of capitalization are most trusted by traders and investors. Here are the factors that indicate the prospect of an asset:
high liquidity indicators;
stable growth in value;
blockchain network development
the credibility of the development team.
However, the world is quite fluid. The market situation can change in a matter of days. But now the total capitalization of the top 10 coins exceeds $ 480 billion. If this number is compared with the total value of all digital currencies (about $ 545 billion), which appear in the CoinMarketCap rating, then the market share of the top ten will be approximately 88%.
Why is Bitcoin the best cryptocurrency investment?
However, many people prefer to invest in bitcoin. It is not surprising, because it is BTC that is the most famous currency, which laid the foundation for the entire blockchain industry 11 years ago.
Satoshi Nakamoto created the digital coin in 2009. At first, 1 unit cost less than a cent, but now you can get tens of thousands of dollars for it. Especially noteworthy is the fact that those who bought the cue ball during the crypto winter period of December 2018-February 2019 and sold it in the summer of 2019 managed to get more than 300% of the profit!
One of the popularizers of the blockchain, Hell Finney, stated that one BTC coin should be worth $ 10 million. However, such a statement was made in 2009, and during this time the real value of the US dollar has dropped somewhat.
Experts note the high reliability of the network and the limited circulation of coins. Therefore, Bitcoin has every chance of becoming a benchmark for the value of digital money and providing its holders with a comfortable life. Naturally, new cryptocurrencies require much less investment, but when buying bitcoin, the risks are minimal.
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