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How to choose a promising cryptocurrency for investment?

01 Nov

 

How to choose a promising cryptocurrency for investment

The emergence of Bitcoin and its rapid growth have triggered an influx of multi-million dollar investments in cryptocurrencies. This phenomenon can be characterized as the greatest investment opportunity in recent years. Projects with blockchain and cryptocurrency technologies reach transcendental heights of cost. Market capitalization of cryptocurrencies reached 700 billion dollars. Despite the fact that this trend is largely speculative, it continues to evolve and has made many people very rich.

Read it too:

  1. «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
  2. «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
  3. «Why would Bitcoin Cash defeat Bitcoin?»
  4. «How to choose the right cryptocurrency exchange»
  5. «What happens to Bitcoin in 2018?“»
  6. «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
  7. «How to Buy Bitcoin Online. ” Fast. | ” The best 5 ways to do it»

Those who did not have time to make money on the growth of Bitcoin, are now looking for new opportunities in the market cryptocurrency. Bitcoin remains an attractive investment target, but now there are hundreds of alternative cryptocurrencies that can generate hundreds of percent of profits. Primary coin placements (What is ICO?) provide an opportunity to multiply investments by dozens or more times. However, it is very difficult to predict which coins will develop the most and why. If properly designed and implemented, cryptocurrency can achieve sustainable growth and sustain it for the long term. Such cryptocurrencies for investments can be selected based on certain criteria.

Reasons for market success are cryptocurrencies

In order to select the right investment objects, it is necessary to analyze the market and its needs. In the case of cryptocurrencies, the only reason for the insolvency of the project may be that the currency does not offer the consumer the desired service. Until there were no other cryptocurrencies but Bitcoin, his forks were offering something new. One could hope to improve this digital money and that it would surpass the Bitcoin. Now it is clear that forks that do not offer anything innovative will lag behind.Cryptocurrencies (alternative to Bitcoin), whose charts are mandatory for analysis, have entered the top ten in terms of capitalization, offering consumers services based on new technologies. If alto-koin has no innovation, it has little chance of success. But technology is not the only quality the market demands. There are three main factors influencing the success of the cryptocurrency in a competitive market environment.The first is the demand for technology. At the present stage, digital money requires improvement of its functionality. Any technical innovations are of interest to the public. Therefore, the cryptocurrency, in which a significant innovation is implemented, may become the object of large investments and increase in price.The second important factor is the possibility of using the cryptocurrency in life and business. A currency that can’t pay for something, nobody wants it. It should also have its value in regular money or be exchanged for other cryptocurrencies. Ideally, a successful cryptocurrency is freely traded on the cryptobirch.And the third factor is trust. After all, the cryptocurrency market is not regulated in any way and nobody gives guarantees of reliability and cost of digital money. In such conditions of functioning stability raises the cryptocurrency in the eyes of investors. And destabilizing situations, such as state bans or hacker attacks, cause trust and currency value to fall.These factors always work. But sometimes you can observe the phenomenon of agiotage. The media make a fuss about some project, and the price of cryptocurrency rises sharply on the wave of popularity. But if there is nothing serious behind such a currency, or it is just a pyramid, it is quickly depreciated.

How do cryptocurrencies get into the top ten

By analyzing the list of cryptocurrencies with the highest capitalization, you can determine that they correspond to one or all of the success factors. For a correct choice it is necessary to find out, why these currencies have got in the top lines of the list. This will save the investor from investing in a popular but unpromising project.It’s not hard to figure out the technological features. Even if there is no knowledge of blockchain technology, you can find a description of the essence of innovation on forums, specialized sites and reviews in an accessible form. For example, Efirium is considered the most technologically advanced currency, with a lot of prospects in 2018, as it serves a new phenomenon – smart contracts. The Monero cryptocurrency features ring signature technology, which differs significantly from that used in Bitcoin and ensures anonymity of transactions. Another example is Ripple, which provides instant money transfers and reliable protection from DDoS.Convenience and practicality are also assessed quite easily. For example, Bitcoin is used as a means of payment in many countries and many services are paid for online. It’s easy to exchange for any currency. Efirium and Lightcoin, and other cryptocurrencies are very easy to exchange, buy or sell. Efirium is in demand for blockchain technology projects. Other such currencies perform an important function.The most difficult thing is to determine the reliability and prospects of the cryptocurrency. In contrast to specific technological capabilities, these are relative concepts. This can be partially determined by the level of market capitalization. This amount reflects the number of people who trust this currency. It is also important that the cryptocurrency is present in the listings of cryptocurrencies and at the companies from the safe rating of Forex brokers. Really high level of confidence in several of the top ten currencies. But there are many others with approximately the same capitalization. Therefore, it is important to understand the reasons why consumers consider these cryptocurrencies to be reliable. In order to draw a reasonable conclusion, it will be necessary to study information from many sources.

Is it profitable to buy top-notch cryptocurrencies

Most investors, especially beginners, try to invest in the most famous cryptocurrencies. Indeed, currencies in the top ten are reliable and stable, which is ambiguous with regard to digital money. Stability will increase capitalization, so it is relatively safe to invest in such currencies. Bitcoin and Efirium are unlikely to move from the first place in terms of capitalization in the short term. Large-scale collapse of these cryptocurrencies is unlikely due to their wide spread.Only fundamentally new technologies can change something in the list of the most famous cryptocurrencies. You can’t rule that out. Cryptocurrencies such as Bitcoin Cash and Lightcoin are more vulnerable in this regard. They are not much different from Bitcoin, and if there are more technological solutions, they can be moved from the first place. Other currencies, which are relatively new, are less stable, but are likely to increase capitalization if they offer consumers new services.For example, ZCash and Dash cryptocurrencies offer increased privacy and may well fall into the top ten. And the NEO and Waves projects are successfully developing, offering services similar to the Efiryum platform. Now these currencies are in the top 30, but their potential is high enough to move up. Therefore, it is impossible to limit investments to the cryptocurrencies of the top ten. This way, you can miss a promising investment target.

Which cryptocurrency to choose

Most of the cryptocurrencies that are in the top 100 today will never be in the top 10. But if a cryptocurrency meets the above three criteria, the probability of its exchange rate growth is very high. Even if it meets two or one condition, this currency can be invested after careful study. Such factors should be taken into account:

  1. Capitalization;
  2. Turnover;
  3. Time of existence;
  4. Graph of price changes.

Large-cap currency is more stable in the market. But only if the sum of capitalization is distributed among a large number of depositors. In this case, price manipulation is less likely. A significant daily turnover on the exchange means the popularity of cryptocurrency, and the more its “age”, the more reliable. The chart of cryptocurrency price changes shows the degree of stability of the cryptocurrency. It’s best when the course grows slowly but surely. Forex company, offering the greatest number of crypovalutes today – is a Forex broker NordFx. Brokers.Ru recommends to get acquainted with the reviews of NordForex – and only then to start opening an account.

Read it too:

  1. «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
  2. «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
  3. «Why would Bitcoin Cash defeat Bitcoin?»
  4. «How to choose the right cryptocurrency exchange»
  5. «What happens to Bitcoin in 2018?“»
  6. «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
  7. «How to Buy Bitcoin Online. ” Fast. | ” The best 5 ways to do it»

Brokers who have Bitcoin trading available 

  1. XM.com
  2. Etoro
  3. Plus500
  4. Instaforex
  5. FXTM

In conclusion, watch the video about investing in cryptocurrencies

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