The Top 5 Cryptocurrencies and How to Invest in 2018
Bitcoin is a trendsetter when it comes to cryptocurrencies that are based on a decentralized system. In fact, it set the standard that other cryptocurrencies have followed. A lot of other cryptos came after Bitcoin with some of them boasting that they were better and much more improved versions of Bitcoin. These cryptos are referred to as altcoins. Some of the altcoins are much easier to mine when compared to Bitcoin. However, these coins have some issues. This includes the fact that they might be harder to liquidate, they are less accepted, and it’s harder to retain their worth. There are over 700 altcoins.
In this article, we will talk about the best cryptocurrency to invest 2018.
Litecoin was launched in 2011. It followed the launch of Bitcoin and was referred to as ‘silver to Bitcoin’s gold.’ This crypto was developed by Charlie Lee. He was an MIT graduate, and he also worked in Google as an engineer. There are many similarities between Bitcoin and Litecoin. However, some differences exist. This includes the fact that its block generation rate is much faster than that of Bitcoin; therefore, it confirms transactions a lot faster. A lot of developers and even some merchants have no problem accepting Litecoin. Litecoin has been developed on a decentralized, open-sourced global payment platform. This platform uses “scrypt” as evidence of work. It can be decoded using consumer grade CPUs.
Ethereum was launched in 2015. It was built on a decentralized platform. It is possible to activate Smart Contracts on this platform. You can also build and run Distributed Applications (ĐApps) on this platform without experiencing any downtimes, scams, control or intrusion from unauthorized users. In 2014, there was a pre-sale for ether that drew a lot of interest on this product. Programs that are on Ethereum are run on ether, which is a cryptographic platform. Any developer who wants to develop a program that runs on Ethereum uses ether. Ether is a medium that is used to move around Ethereum. You can code, decentralize, secure and trade anything that you want using ether. In 2016, there was a DAO attack. After this attack, DAO was divided into Ethereum (ETH) and Ethereum Classic (ETC). ETH is worth $14.4 billion in the market. This is the second biggest crypto after Bitcoin.
Dash is the clandestine version of Bitcoin. Its original name was Darkcoin. This crypto was created by Evan Duffield. It was launched in January 2014. This currency gained a huge following soon after it was launched. It was renamed from Darkcoin to Dash in March 2015. Dash stands for Digital Cash. You can mine this crypto using a GPU and CPU. This currency provides one with anonymity given that it works on a decentralized master code that makes it hard for transactions to be traced. Even though its brand name was changed, its features, such as Darksend, InstantX remained the same.
Ripple was released in 2011. It has a market capitalization of $ 1.26 billion. It is a global settlement network that provides cheap international payments. With Ripple, it is possible for inter-bank cross-country transfers to be made instantly. The fees charged are low, and it is a more transparent system. One of the things that makes Ripple different is the fact that it is not mined the same way Bitcoins and other altcoins are mined. This means that it uses less computer power and minimizes the dormancy of networks. Ripple rewards people for different behaviors that they do as a way of promoting certain behaviors that they prefer. That is why the main goal of Ripple is to give rewards for business development deals. They also reward liquidity providers who offer tighter spreads. They also sell to organizations that are interested in investing in Ripple.
Monero was launched in April 2014. Soon after, it became quite popular among cryptocurrency fans. This crypto is solely based on donations, and it is driven by the community. This currency is secure and private. Therefore it is untraceable. This platform uses signatures as a way of ensuring the privacy of users. This crypto was developed with the main objective of growing it to a bigger scale. It is also decentralized. With the ring signatures, there are some let’s say 5 cryptographic signatures that occur alongside the real signature. This makes it hard for someone to identify which one is the real signature.
Bitcoin is the market leader when it comes to cryptocurrencies. This is based on the market capitalization that it has; how popular it is and the number of people that use it. Cryptocurrencies, such as Ethereum and Ripple are mainly used for enterprise solutions. There are other altcoins that are more reputable because they have some features that are better as compared to Bitcoins. Cryptos are here to stay, but now it is still hard to say which ones will emerge as market leaders in the future.
Cryptocurrency as an Investment
Should I buy cryptocurrency? This is one of the most common questions I receive lately. Everyone wants to know if this cryptocurrency fad is here to stay or something that is going to fade with the wind. So here are my thoughts on the matter:
There are three main reasons why you should choose to invest in Cryptocurrencies. You can use it as a hedge to protect your wealth, in case the Dollar imperium falls. This is something that is quite likely to happen. Also, you can invest in cryptos if you support the concept behind the creation of cryptos. This is the vision to have a free, hard worldwide currency. You can also invest in cryptos if you like technology and would like to stay ahead of the game.
There are negative reasons for investing in cryptocurrencies. This includes being carried away by the hype that surrounds cryptos. It is also not a good idea if you invest in cryptos without having a good understanding of what they are. Some people also invest because of FOMO (fear of missing out) and with the hope of making some quick money.
What Cryptocurrencies Should You Buy?
Up until 2016, Bitcoin was the only cryptocurrency in existence. If you were interested in cryptos, Bitcoin was the only available option. Altcoins were being sold as penny stocks in the online black market. They were mainly purchased with the motivation of keeping GPU’s working, increase their prices and then sell them off.
All this changed in 2017 when Bitcoins share of the market fell from 90% to 40%. This can mainly be attributed to the growth and popularity of Ethereum and the issue about block size that has split up the Bitcoin community. This has proven that user feedback is important when it comes to a product.
If you want to include cryptocurrencies in your portfolio, the chances are that you might include Bitcoin. However, if you want a well-balanced portfolio, then you can include other cryptos as well.
This includes other coins such as:
One of the websites that you can go through when you are trying to put together your portfolio is CoinMarketCap.
When putting together your portfolio, consider what the top ten coins might be. It is advisable that you read about the different coins that you are interested in investing in and find out as much as you can about them.
When you think about buying cryptos, do not do it with the aim of becoming an overnight millionaire. Once you have made up your mind to buy cryptos after realizing that blockchains are the technology of the future or you have observed someone close to you dealing with cryptos and becoming rich because of it, then you might be ready to make a purchase.
It is not that hard to purchase Bitcoins. In fact, the purchase process can be fun. It is good to have realistic expectations. Also, only invest money that you can afford to lose. Here is how to go about the purchasing process:
Buying with Coinbase
Coinbase is a popular digital platform. A lot of people use this platform to buy and sell different kinds of cryptos, such as Ethereum, Bitcoins, Litecoin, and Ether. The platform is mainly stable, but there are times when it might have outages, especially when there is heavy activity going on.
To use the platform, register an account on the website www.coinbase.com. You can also download the app on your phone. Once you agree to the terms of service, the next thing that you will see is a chart that shows the movement of Bitcoin and other cryptos. Next, you must add a method that you will use to make a purchase. Tap on the “Buy” button on the app or click on the “Buy/Sell” tab on the website. You can then attach a credit or debit card if you intend only to make fast and small investments. If you want to make bigger investments, then attach your bank account instead. You can also attach the bank account of sales processes that might take up to 4-5 days.
Next, click on the buy button again and then select which crypto you would like to buy, and then enter the amount you would like to spend regarding dollars. You will then be shown the Bitcoin, or another coin equivalent of the dollar amount you entered. Then click on the “Buy” button. If you are doing this for the first time, you are likely to receive a call from your bank asking you to confirm the purchase. Therefore, do not be surprised if this happens.
Buying with other platforms besides Coinbase
There are other platforms that you can use apart from Coinbase. This includes Kraken. You can trade Bitcoin and other altcoins like Stellar and Ripples on this platform.
Using Kraken is a bit more complicated as compared to using Coinbase. It is better to use the website version as compared to the iPhone app, as it is not that great. The first thing you need to do is to sign up for an account on this platform and then get it verified. You will need to enter your name, phone number and address. You will also have to upload a government-issued ID and proof of address, depending on where you live.
The next thing you need to do is to fund your account. To do this, choose Account and then click on Funding and then Deposit. Follow the onscreen instructions on how to activate a bank transfer. You can then send money from your bank account into your Kraken account.
Now that your account is funded, you can start trading. Click on Account, Trade and then New Order. The next thing is to select which cryptocurrency you would like to purchase and then choose the type of currency that you would like to use. You also have the option of using Bitcoin to buy other smaller cryptos such as Ripple. Choose simple and then click on Buy. Then enter the amount of crypto you want to buy then hit confirm.
Your bank might also call you to confirm that you are the one who has made the purchase. It’s that simple, and you will be the owner of some cryptocurrency.
When to Buy?
When it comes to cryptocurrencies, it is not good to catch the knife when it is falling. This simply means that you should make a purchase when prices are stable. Do not buy when the prices are crashing or at the peak of a bubble. Your best bet would be to buy it when prices are at an all-time low.
It can be hard to decipher when the price has reached a peak or when it is crashing. Sometimes you might think that it has reached the peak, but then it continues to rise.
When timing cryptos, avoid comparing them with financial bubbles. A 10% rise in price might not be a bubble. A 100% increase in price might be the start of a bubble and a 1,000% increase in price is a bubble. However, it might not pop.
Observe the market first before you dive in. Take time to watch the market first and find out as much as you can about cryptos first before investing in them. It is also good not to be a weak hand. That does not sell too early. Holding might be the better option. This is just the start of the monetary revolution.