Ideal Cryptocurrency to Invest Today
If you want to join the craze, it is time to consider cryptocurrency investment. Cryptocurrency is a virtual currency that is created to work as a medium of exchange. It is equipped with encryption technology that secures and verifies the transactions as well as regulates the production of new units. There are many types of cryptocurrencies. In fact, as of April 2018, there are 1,565 types of cryptocurrencies.
The common way to launch new cryptocurrencies is through ICO (Initial Coin Offering). More and more ICOs take place every month. With this, the number of cryptocurrencies significantly rose. The plethora of cryptocurrencies begs the question: with so many choices out there, what is the best cryptocurrency to invest? If it is your first time investing, you should be aware that many cryptocurrencies are overhyped and vulnerable to crashes.
To determine the best investment, you need to consider different factors like cryptocurrency risk, reward, underlying technology, and fundamentals. Cryptocurrency risk should be gauged based on price volatility. The reward will include relative and absolute price performance. The fundamentals include the scalability and transaction speed. To make things easier, you can start with the following cryptocurrencies:
Bitcoin is the largest cryptocurrency. It features a public ledger called blockchain. It is decentralised, which means no government or institution is behind it. Finally, you can use it as a form of payment – as long as the merchants accept it. Being the oldest cryptocurrency, it has the biggest community of investors. The best thing about it is its ease of purchase – even the beginners can purchase it with the support of wallets and exchanges.
Ethereum is the second largest cryptocurrency after Bitcoin. The platform is blockchain-based. It develops decentralised apps and smart contracts. Smart contracts refer to the agreements, which are coded on the blockchain and it is executed on the achievement of particular pre-set conditions. Ethereum is the most preferred platform for launching ICOs.
Ripple is designed to solve problems related to International Payment Transfers. The goal of Ripple is to make the international transactions cheap and fast. You have to know that international money transfer takes one week. Ripple can make the transfer happen in a matter of seconds. The fees are also lower compared to the charging fee of other financial institutions.
Bitcoin cash has been forked from Bitcoin. This was created because the developers did not agree about the changes required in Bitcoin’s code. The purpose of Bitcoin cash is to solve existing problems of Bitcoin. Bitcoin cash is faster and the transaction fee is lower.
EOS is a direct competitor of Ethereum. Like Ethereum, EOS builds a platform for decentralised applications and smart contracts but with improvements. It is said to be more scalable than Ethereum and it uses an advanced mechanism to confirm the transactions.
Remember to invest in amounts you are comfortable to lose. You should also have a clear idea of your investment goals. Do you want to sell the cryptocurrency after some time or when it reaches a certain price? Do you want to sell the cryptocurrency at once or one at a time? These are the things that you should think about before indulging.