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.
List Of The Best Cryptocurrencies To Invest In 2017?
For many people, 2017 is officially the year to invest in cryptocurrencies. As the value of substances like Bitcoin continues to soar – sometimes beyond the worth of gold, it’s easy to see why people everywhere are clamoring to get their hands on a slice of the pie. Now that a number of new currencies have joined the market alongside Bitcoin, such as Zcash, and Ethereum, the overall worth of crypto-coins falls at well over $100 billion.
— BITMAIN (@BITMAINtech) March 3, 2017
Unfortunately, while the current statistics for cryptocurrency might look good, it’s hard to determine what the future holds for this method of investment. After several years of dominance in the marketplace, squabbles among developers in the Bitcoin world have led to some problems in the market. Combine a general sense of uncertainty with a lack of progress and rising transaction fees, and you get an all-around troublesome picture for the world’s first cryptocurrency.
On the other hand, Ethereum has hit the market as a strong competitor – although it’s entirely different to Bitcoin, with a strong concentration applications on the blockchain instead of just recording payments. Although no-one can say for sure where the crypto-world is headed, now is a good time to take a look at some of the most promising competitors on the market, and what they can offer. We have put together a list of our personal favourite coin which we think are the best cryptocurrencies to invest in 2017.
Introducing The Best Cryptocurrencies To Invest
1. Bitcoin (BTC)
As the cryptocurrency that started it all, Bitcoin is still on of the best cryptocurrencies and the most popular option for investors – despite a few problems. With a worth of around $41 billion, Bitcoin owns the largest market share, and it’s been around for more than eight years. Today, the currency is used around the world, and no-one yet has found an exploitable weakness in its format.
Bitcoin is both a payment system and a store of value. It allows users to receive and send bitcoins (BTCs) easily. The history of Bitcoin is someone mysterious, as all we know is that it started with a person, or group of people called Satoshi Nakamoto – which then disappeared two years after the project was launched in 2009.
Bitcoin works on an invention called blockchain – which is also responsible for many of the other cryptocurrencies on the market today. The “blockchain” is a kind of distributed database that stores all the transactions a person makes on a network in chunks of data known as blocks. Every user with Bitcoins has a copy of the blockchain, which means that everyone knows (in theory), where each bitcoin is. The complete network is powered by “miners” who use computing power to mine the next block of information for bitcoins. This generates new coins and provides the power the system needs to keep transactions recorded.
The blockchain works by solving numerous important mathematical problems. It’s a transparent and engaging system of financial transactions, which allows the movement of bitcoins to be tracked. Because the system is decentralized, you don’t need a bank to use it, or vaults to store money. You don’t even need a team of people to tell you how much you own. Bitcoin is a clearly effective way of storing, sending, and receiving digital money in a secure, and efficient fashion. You can learn more about how to buy Bitcoin here
2. Ethereum (ETH)
Ethereum is another of the most popular solutions for cryptocurrency investors today. Designed by a programmer called Vitalik Buterin, Ethereum works in an entirely different way to Bitcoin. Though it can do many of the same things that Bitcoin can do, its primary purpose is to act as a platform for building decentralized applications.
The biggest difference between Bitcoin and Ethereum is the use of blockchains. While Bitcoin’s blockchain records contracts, showing how digital funds have moved from one place to another, Etherum has expanded this concept. The Ethereum blockchain uses a far more complex scripting language, and its smart contracts can form complex applications that have a broad range of potential uses.
Developers have recently started to take notice of the potential that Ethereum can offer, building projects on top of the cryptocurrency. Some individuals have even used Ethereum to raise millions of dollars through crowd sales known as ICOs, and the trend remains strong today. This makes Ethereum a powerful option for those invested in finance. However, the popularity of the currency means that the price has skyrocketed.
Though many experts regard Ethereum to be potentially the most promising cryptocurrency on the market, the future of the coin is unclear. At present, Ethereum is valued by the apps that are built using it, and if those apps start to lose some of their worth, or begin to fail, then Ethereum will suffer. Additionally, despite the ambition of Ethereum for long-term success, it’s not totally clear whether the network will be able to scale well enough to allow for more complicated applications to be built.
On top of this, Ethereum can’t be widely used as a form of payment, which means that it’s not a replacement for Bitcoin in every respect. By owning ETH long-term, it’s difficult to see what you can really accomplish. Additionally, just like any form of cryptocurrency, Ethereum is highly volatile. In 2016, an Ethereum-based VC known as The DAO amassed a huge amount of ether in a crowd sale, just to have almost a third stolen by a hacker. The event shook the online community, leading to a huge price drop.
3. LiteCoin (LTC)
LiteCoin is one of the best cryptocurrencies alternatives to Bitcoins that was designed to manage some of the issues that could be holding Bitcoin back. Though it isn’t quite as innovative as Ethereum, it still has potential. LiteCoin’s value is derived entirely from user adoption, and there’s also a difference in leadership for the companies involved too. LiteCoin was created by an ex-Google employee called Charlie Lee, who’s entirely transparent on social media about what he’s doing with the currency.
That said, don’t forget that Litecoin already went through a 10x SegWit price increase this year. Bitcoin has yet to 10x in price. Slowpoke! https://t.co/T6nt0iNifg
— Charlie Lee [NO2X] (@SatoshiLite) August 13, 2017
For quite some time, LiteCoin was nothing more than a distant competitor for Bitcoin. Though it was far less valuable, it was still there as a potential alternative. However, things began to change in Mary 2017, when a huge exchange called “CoinBase” started to use LiteCoin alongside Ethereum and Bitcoin. Since then, investors have begun to take LiteCoin more seriously. Additionally, the currency has also adopted “Segregated Witness” technology which fixes problems that Bitcoin has yet to solve. The solution adds more capacity into the network and reduces transaction fees.
LiteCoin has raised significantly in recent months since Charlie Lee announced that he would be leaving CoinBase to focus his efforts on building LiteCoin. Today, the currency could be even more valuable to users than ever before, as a truly viable alternative to Bitcoin.
4. Alternative Options: Zcash (ZEC) and Monero (XMR)
Although Monero and Zcash are very technically different, we’re bundling them together in our list of the best cryptocurrencies, based on the fact that they can both solve the same problem of anonymous transactions. Although Bitcoin was typically seen as a currency for the darknet, and a method of laundering money, the truth is that its blockchain is very transparent. As we mentioned previously, every transaction conducted through Bitcoin is public and logged. That means that anyone can see how money has moved from one person to another.
Bitcoin’s protocol does allow for some amount of anonymity, and there are methods you can use to increase the secrecy of your Bitcoin transactions – however, they aren’t ideal. The good news is that Monero and Zcash aim to fix this problem. They’re both doing this in very different ways, and the technical details are quite complicated. However, one thing you should know is that the main difference comes down to the blockchain, which is opaque on Monero, and partially public with Zcash.
So far, there’s no real evidence that can determine which chain works better, and Zcash has yet to fully implement its whole solution. However, if you’re looking for privacy, it’s fair to say that Monero and Zcash are where you should start.
Of course, there are plenty of reasons why you might want to add more secrecy to your cryptocurrency transaction – besides nefarious purposes. Remember, you might just want to make sure that no-one knows how much money you’re spending on certain items. Although it’s not certain that privacy-based coins will earn a top spot in the currency market, it’s fair to say that there is a demand for this type of cryptocurrency.
5. Other Options: Bancor, EOS, Tezos, Etc…
Now we’re coming to an area that we can only comment on with educated guesses. The projects that are listed in the subheading, EOS, Tezos, and Bancor, aren’t fully launched yet, and yet they’ve already managed to raise over $100 million each and that is the reason we are adding them to out list of the best cryptocurrencies to invest in.
Bancor is a platform that’s designed to create new digital tokens with simplicity. It’s promised that it will make every token liquid, and easier to use. On the other hand, Tezos is an Ethereum alternative that can be easily upgraded, without any need for hard forks. Finally, EOS is another type of Ethereum competitor, which hopes to problem the Ethereum scaling issues by giving people a more robust set of tools for running apps through the platform.
Of course, there are many other options out there beyond those three that you might want to consider, including Dogecoin, Gnosis, and Ripple. However, predicting which one of these will emerge as the next big player in the cryptocurrency market is almost impossibly difficult. Many of these projects aren’t yet complete, and one of the key factors in the success of any currency will always be adoption rates. Both Ethereum and Bitcoin have thrived as a result of good adoption, and this is because they both offered new and interesting ways to build finance.
Although many of the newest options on the market have received some backing and support from interested early adopters, they’re not exactly proven solutions. Additionally, most of the new coins that have emerged have received their own fair share of criticism too. This is only to be expected in a space that is evolving so rapidly, we’re even starting to see joke coins on the market.
The only way to make sure you’re making an investment that you can feel confident in is to take the time to learn as much as you can about each potential currency before you start spending your money. Just like anything else in the tech world, the best cryptocurrencies will find their way to the top eventually.