What Is The Best Cryptocurrency to Invest in 2018
Cryptocurrencies were born with the invention of Bitcoin, back in 2009. It took nearly five years for the cryptocurrency markets to be noticed by some of the earliest investors. Since 2013 however, those markets grew too fast to be ignored. With the rising popularity of cryptocurrencies, 2017 was one of the most profitable years for the investors. Cryptocurrency markets grew up exponentially last year. The total market cap of all cryptocurrencies jumped from $18 billion in January 2017, to 613 billion on the same date in 2018. This translates to an incredible 3305 % increase in value.
When buying any asset, it is wise to remember to avoid buying it when it is at the peak of its price. You should always try to buy it at the lower spot of price movement. It is easier to point out the perfect entry point when you are looking back on your past decisions. Figuring it out in the real time, on the other hand, is a real challenge. Take some time to observe the price action. Don’t buy in just because you have a feeling that you will miss out on some potential gains. To mitigate your risk you can also buy your cryptocurrency proportionally. This means separating your budget into parts and then buying your preferred asset partially over time. Buying 20% of your intended purchase five days in a row averages your buying price and eliminates some of the volatility. Therefore you won’t be stressing out as much if your newly bought coin suddenly drops in value.
When storing cryptocurrencies it is a good idea to keep them off-exchange. Hacks do happen from time to time and exchanges are a very profitable target. It is better to store your coins by yourself. You can do so using an online or an offline wallet. Online wallets are based on a software that allows users to store their coins using an online website or application. Some good examples of an online wallet are Metamask, Jaxx, and MyEtherWallet.The offline version of the wallet, also known as cold storage, uses a software to store the currencies on a piece of hardware, disconnected from any web server or computer. If you are looking for a good hardware wallet you can check TREZOR or Ledger Nano. When setting up your wallet you will also get your private key. It is safer to store it offline. If you write it down on a piece of paper, it is impossible for someone to steal it unless they have access to your physical location. Storing your own also coins means that it’s solely you who is responsible for them. If you lose your hardware wallet, the coins are gone, if you lose your private keys you will become unable to access them, and so on.
It is difficult to predict what is going to happen with the price in the future. However, if you believe in blockchain technology, there is a lot of promising cryptocurrencies or so-called “best cryptocurrency to invest” that could become way more valuable than they currently are. In this guide, we will present you some of the most established cryptocurrencies that could increase in value in 2018. In the next sentences we reveal our personal favorites of the best cryptocurrency to invest in 2018
If you heard anything about cryptocurrency, it is likely, that you already know what Bitcoin is. The coin was invented back in 2009. It’s decentralized nature and the fact that it offered fast transactions while the users stayed somewhat anonymous was a real novelty back then. It is the first cryptocurrency that paved the way for all the other coins through the use of blockchain technology. Moreover, it is often described as an alternative to gold in terms of storing value. Similar to gold, the quantity of bitcoin is limited to a certain amount. Consequently, Bitcoin’s value grows with the increase of its popularity. Because people are mostly entering and leaving the crypto markets trough Bitcoin, it is usually the first currency to make a move in a crypto market. Other cryptocurrencies follow because they are later bought or sold with bitcoin. Their value is often expressed in BTC as well. If there is an increase of cryptocurrency adoption, the traditional investment capital would probably enter the markets through the purchase of Bitcoin. Being the first and biggest cryptocurrency in terms of its market cap, it is one of the less risky coins to invest in and so it is one of the first choices in our list of the best cryptocurrency to invest.
Ethereum is a smart contract platform for decentralized applications that was launched in July of 2015. It allows the creation of distributed applications that can run without any interference from another party. It is using a Turing-complete smart contract system and it’s own Programming language. Smart contracts are applications that ensure the automatic fulfillment of a clause in a contract once the predetermined condition is met. Among other things, it enables the creation and development of other cryptocurrencies that run on Ethereum network. Using the network, a startup can raise the capital for the development of their token trough the ICO (initial coin offering). When the conditions of the smart contract are met, the issued tokens are exchanged for Ethereum which becomes the startup capital. The Ethereum cryptocurrency is firstly used to run and monetize the applications on the Ethereum network and secondly it is traded as a digital asset on cryptocurrency exchanges. Investing in Ethereum is a good idea if you believe there will be a lot of ICOs that decide to use Ethereum blockchain in 2018.
For a better overview you can watch the video to see how Ethereum works real time:
If Bitcoin is the digital gold among crypto investors, then Litecoin is the silver. It is a Bitcoin clone with a different hashing algorithm that enables faster transaction speeds. It is also one of the oldest cryptocurrencies, being released in 2011. Over the years it has established a known name. Their good reputation reflects in them being one of the largest cryptocurrencies in terms of market cap value today. Fast transaction speed, low transaction fees and Litecoin’s close connection to Bitcoin are the main reasons that attract Litecoin investors. If the crypto markets expand in 2018, it is likely that Litecoin would get more than a fair share of the increased value.
Stellar Lumens is a project that is essentially a payments infrastructure. Their main goal is to enable cheaper, faster and reliable financial transactions to basically everyone. They aim to provide all of the traditional banking services, but on a decentralized network. If you compare it to Pay Pal, it is more accessible, flexible and, of course, it runs on the blockchain. When you send a payment on their network, you don’t have to wait for a bank confirmation. It enables easy cross-border transactions without any interference from a third party. Therefore it could bring a lot of value to people who don’t have access to traditional banking services. One of the challenges they could face is the fact that most of those people don’t have good access to internet either. Their system is based on a distributed ledger that runs on a multitude of decentralized servers which are backed by a group of different entities and individuals. It is completely open-sourced, so anyone can benefit from its progress.
Monero is a currency with the biggest market cap among privacy coins. Privacy coins are currencies that enable private, untraceable transactions. Those blockchain systems are attractive for users who value their privacy when making a transaction. The downside of the privacy aspect is the fact that those systems are often used for purchasing illegal goods and money laundering. Privacy coins can sometimes get a mixed response from the community as there is a lot of uncertainty about the regulatory approach towards privacy coins. However, if you are thinking about investing in a privacy coin, you should take a closer look at Monero. It is one of the earliest privacy coins. They have a competent development team that works on the project for quite some time. Monero’s original code wasn’t copied from the Bitcoin codebase. Their codebase began as a fork of Bytecoin. However, it does not resemble it anymore as the project evolved over the years of development. They provide unlinkable stealth addresses and untraceable payments. If you value your privacy and believe in this aspect of cryptocurrency, then Monero is the choice for you.
Cardano is a smart contract platform, currently in development so it is not operational yet. Compared to Etherium it has a different development approach. It is based on a peer-reviewed academic research meaning that it is developed by many international researchers and scientists that operate independently. One of the perks of the project is their security protocol that should soon become quantum resistant. Quantum resistance is a term that describes a network immune to a potential quantum computer attack. In theory, an attacker could use the computer to overpower 50% of the miners and alter any transaction from there on. Being resistant in that regard could be invaluable if quantum computing develops enough to pose a threat. Cardano project does not only plan to be a smart contract platform. They additionally aim to implement banking systems where there was previously too expensive to do so. They have a very ambitious project with a wide variety of goals. The magnitude of their combined targets could be a double-edged sword as it leaves a lot of room for a mistake. However, should they reach their intended goals in a timely manner, the Cardano project could become one of the biggest platforms in crypto.
Nano is a project that intends to become a reliable alternative to traditional currencies. It is a cryptocurrency with zero-fee instant transactions. In terms of convenience when transferring your money this is almost as good as it gets. The project previously known as Raiblocks was only recently rebranded due to a confusion over the pronunciation of their previous name. The currency is also highly scalable due to use of their logarithms. The network uses the delegated POS (proof-of stake) system meaning it is less susceptible to potential attacks. The attacker would have to buy half of all the NANO coins to succeed. This would make it too expensive to even consider. Using a POS also means that they spend a lot less energy when confirming transactions compared to a proof of work alternative. Overall it is a very promising project that brings some real value in terms of handling transactions. The financial bonus of no fees, combined with the convenience of an instant transaction makes NANO one of the most useful cryptocurrencies out there.
When investing in cryptocurrencies you have to be always aware that this is a risky investment. The above-mentioned assets could be highly volatile and can present you with a profit or a loss. Therefore you should never invest more money than you are prepared to lose. Before you take any investment decision you should always do your own research.