One of the most frequently asked questions which baffles the mind of millions is “where do I invest?”, the answer to this question will perhaps remain unknown. No one can be extremely sure about whether the value of a coin will increase or decrease. Investing in cryptocurrency can be termed as ‘the new black’ because it is fundamentally a new decentralized operating system for the global economy.
Bitcoin was the first released cryptocurrency in market and indeed the most popular, but if we look beyond the hype created by bitcoin there are several other coins flooding into the market which might actually be much more beneficial to invest in. We have numerous cryptocurrencies out there to invest in but the main question that arises is which one is the most financially stable to invest in.
The first criteria we can consider before investing is which cryptocurrency earned the highest grade?
Weiss cryptocurrency rating is followed while seeing the grade of the cryptocurrency. They are based on a model that analyses thousands of data points on each coin’s trading patterns, technology, and usage. Cryptocurrencies that receive an “A” grade are considered excellent and the most beneficial to invest in.
But, not even a single crypto has earned an “A” or even an “A-minus”, Weiss very well reasons this by saying “At this early stage in their evolution, there is no such thing as a “safe” cryptocurrency.” The highest rated cryptos have earner a “B-minus” grade in Weiss’ latest ratings. Only seven cryptocurrencies have earned the merit position of “B-minus” namely, Bitcoin (BTC), Cardano (ADA), EOS (EOS), Ethereum (ETH), Ripple (XRP), Stellar (XLM), and TRON (TRX).
As stated earlier, since no one can be extremely sure about whether the value of a coin will increase or decrease, we cannot rely on Weiss’ ratings entirely. In fact, it was backfired by many cryptocurrency investors because they hate criticism against the coin they’ve speculated on. Ari Paul, CIO at the cryptocurrency investment firm BlockTower Capital told CNBC at the time “Their rating of Bitcoin suggests a misunderstanding of the core value proposition of cryptocurrency, however, as they seem to overvalue transaction capacity, and undervalue protocol stability, security, and decentralization”
The second criteria that can be taken into consideration is by analyzing previous statistics i.e. by seeing which cryptocurrencies were the most beneficial to invest in 2017. Cryptocurrency blog need to read for latest updates in cryptocurrency ecosystem.
Bitcoin is the most popular and the biggest cryptocurrency. It currently has a 40% total share in the cryptocurrency market. The value of bitcoin continuously increased in 2017 and if the same situation takes place in 2018 then investing in bitcoin is definitely a good idea. Needless to say, the price fluctuation of bitcoin is constant and unpredictable.
If you’re willing to invest in bitcoin then better keep yourself updated with the news on a regular basis. When news is released about new technical improvement or if there’s a huge fall in the price, you might want to think about buying bitcoin. At the end of the day, the decision is totally yours and it’s your faith in the investment which matters the most!
The second largest cryptocurrency after bitcoin is ethereum, its value grew by 3000% in 2017. Unlike Bitcoin, Ethereum is not just a digital currency. It is a more advanced blockchain project. It offers something special — by using Ethereum, investors can invent an entirely new cryptocurrency.
Imagine that you would like to build a blockchain-based solution for managing the supply chain of your business. Using ethereum you will not feel the need to start from scratch. Instead, you can just build an application on Ethereum’s blockchain. It basically makes launching a new blockchain project much easier.
If you’re thinking about investing in ethereum, you’re just on the right track! Why? Because Julian Hosp, a blockchain expert, said that the market cap of Ethereum could rise to $200billion by the end of 2018. If Hosp’s prediction is correct, the price of Ethereum will nearly double to $2000. Hosp’s reason behind the prediction is based mostly on the ICOs (Initial Coin Offerings) that decide to use the Ethereum blockchain in 2018.
Ripple performed exceptionally well amongst the other cryptocurrencies in 2017, with a growth of around 36000%. Ripple investors earned great amounts by investing in it in 2017 but it’s nothing to worry about if you didn’t, it’s never too late! Ripple is cheaper than bitcoin and investing in it can be worth. Its total market capitalization is around $28 billion.
So what is so special about ripple that is attracting investors?
Ripple is not just a digital currency but also a payment system, it uses blockchain technology to make international payments securer and faster. Payments that are done using ripple just take some seconds to process, whereas international bank payments take around 2-10 days.
Last but not the least, litecoin definitely cannot be missed when talking about the best cryptocurrencies to invest in 2018. Litecoin grew by 8000% in 2017. The price of Litecoin grew from around $4 at the beginning of 2017 to a high of $358 in December 2017. However, just like most cryptocurrencies, Litecoin also followed the price trend and dropped to $110 in February 2018.
Litecoin, the 5th largest cryptocurrency with a market capitalization of around $11 billion is gaining popularity because of its close connection with bitcoin. Litecoin was created in 2011 to improve upon Bitcoin’s technology. It completes transactions much faster than bitcoin and therefore gaining popularity.
In the end, the case is rested by stating that if you’re investing money be ready to lose it! Yes, your predictions can’t always be right.
“You should only invest the money you’re not afraid to lose.”