Looking for the right cryptocurrency to invest into isn't an easy task even for the savy investor.
Remember, a more correct term to use is "crypto asset" because these cryptos are actual companies with real employees.
Countries issue currencies and have strict rules and regulations that govern the use of.
Some cryptos are open-source computer programs like Uniswap with an active and vibrant developer community.
These developers are responsible for the governance of the platform and work together as a unit.
What most newbie investors tend to gravitate towards are meme coins, because they're in the news pumping like crazy.
You hear stories about people throwing in $1K and coming out with $500k.
And you know, it does occur a lot.
You can make money off meme coins, you just have to beware of what you're doing, because it's an extremely risky road to travel down.
What Cryptocurrency To Invest In
The best way to make long-lasting returns, is for you to invest into projects that are solving problems that people care about.
Projects that have real-world uses are the best cryptos to invest into, and not pump-and-dump coins.
It's important that you use a reputable crypto exchange or more preferably a decentralized platform with enough liquidity to process your transactions.
Both platforms are simple to use and easy to understand.
Just keep in mind that you'll be paying higher transaction fees in exchange for ease of use.
Both platforms have high trading volumes, and they both are adding new cyrpto assets frequently.
Investing in Bitcoin is a no-brainer if you're new to crypto.
It's the king of cryptos and it's the asset class that moves the entire market.
It's fungible, easily transportable, highly secure, and highly valuble.
You can find BTC (Bitcoin) on any exchange.
Because of Bitcoin's high valuation, you might be put off in thinking that you can't afford 1 BTC.
Remember, you can buy a fraction of a Bitcoin and still see gains over time.
A lot of us will buy other crypto assets, and use those gains to pour back into Bitcoin over time.
This way, you'll increase your BTC holdings while investing into other cryptos.
The no.2 crypto of choice for new and veteran investors.
Ethereum is such a massive platform with a vast eco-system it's difficult to ignore.
This crypto will be around for a very long time, and it's a solid place for investors to pour into.
It's the home of the majority of decentralized exchanges and lending platforms.
To say the Ethereum network is a giant is an understatement.
Taking More Risks
I quickly mentioned Bitcoin and Ethereum, because they are the two most popular platforms for investing.
They have the most activity and are the most commonly invested for newcomers.
If you really want to earn better returns on your investment you'll have to dig deeper.
These are Blue-chip cryptos which aren't going anywhere anytime soon.
If you feel like you missed the boat with Bitcoin, look no further than Cardano.
It's price as of this writing is $1.96 U.S.
Once Cardano is fully complete, you can bet it will be a solid No.3 crypto within the next decade.
XRP is set to replace legacy and outdated banking infrastructure systems.
XRP is faster, more efficient, and cheaper to use than the likes of SWIFT.
But if you want to experience sweet 20x-100X gains, you'll have to dig deeper than these blue chips.
You'll have to look at projects with a market cap of $50 million or less.
These cryptos are new, and if they come through on their promises, you can see these low cap gems rocket up in price.
But you need a stomach to handle the volatility, and never invest more than you're willing to loose.
Low Cap Gems
Here are a list of projects that I'm either invested in, plan to invest, or have invested in as of this writing:
- Hapi ( ranked #: 712 Market Cap: $41,111,683)
- Bitspawn (ranked #: 1338 Market Cap: $7,841,159)
- DSLA Protocol (ranked #697 Market cap: $44,374,782)
- Step Finance ( ranked #414 Market cap: $125,915,088)
It's important that you do your own research on any cryptocurrencies you plan on investing into.
Research whitepapers, social media forums, websites, etc.
Everyone has a different level of risk tolerance, and you should know yours.
How much are you willing to risk?
Do you have an exit strategy?
Do you have a entry strategy?
Remember, nothing in this article is financial advice, and you should do your own research.
Cryptocurrencies are a new asset class, and with that being said, there are many upsides and downsides to investing into crypto.