The cryptocurrency market is on the rise. In the past few years, you must have seen a lot of ICOs taking place. Millions of investors from around the world invested their monies in cryptocurrencies. Some of them are waiting for their digital coins to make a breakthrough and some have already become millionaires. Of course, this must encourage you to invest your money in cryptocurrencies as well. If you do not want to lose your money in some new and unproven cryptocurrency, you have to make sure you know about the best. Being able to conceptualize a digital currency and what your role is from an investment perspective will put you ahead of many. Concepts such as ICO vs IPO will make part of your core fundamentals as a DeFi enthusiast.
Before you start trading cryptocurrencies, you must know a few things that can affect you as a crypto trader.
Things to Consider before Investing in Cryptocurrencies
· Don’t be Afraid of the Volatility
Cryptocurrencies can be quite volatile. However, you can rest assured that they are not going anywhere. They can go up and down in price significantly within an hour or day, which can be frightening but is also gives avid traders to make a lot of money in little time. Rather than staying out of the market because its volatility, you should learn to use the volatility of cryptocurrencies to your advantage. That is what early investors did and their decisions have turned them into millionaires today.
· You Don’t Have to Own to Invest
It might seem at first that you have to own digital coins to invest in them but that’s not true every time. You can trade cryptocurrencies without owning them in the form of CFDs. However, you will have to find the online platforms i.e. brokers, who provide you with a trading platform to trade digital coins in this manner. For example, you can consider XTR Gate for trading cryptocurrencies and making money from them without owning digital coins.
· You Can Look beyond BTC and ETH
Yes, these are two of the best currencies in the cryptocurrency market. With the scope that they have, you can expect them to stay on top for years to come. However, it should not mean that there are no other reliable currencies on the market other than these two. You can find a variety of other cryptocurrencies that might not be as valuable as these two but they have great scopes as well. Do your research before you invest your money in any digital coin.
The Best Cryptocurrencies of 2020
Tezos is one of the most investable cryptocurrencies out there. It also remains one of the biggest ICOs in the history of cryptocurrency initial coin offerings that have taken place so far. However, the initial months were quite difficult for the developers of this currency. It faced a lot of skeptics from people and was once considered a fraud. However, things have changed for this digital coin and its future seems bright among the top 10 cryptocurrencies of 2020.
In 2020, it is the 10th biggest cryptocurrency based on its market cap size. Why Tezos gets so much attention from mature crypto investors is because it is not just an ordinary cryptocurrency. It is more like a platform on which developers can create more applications. When looking to trade this coin, you should watch for the XTZ symbol. The process of mining Tezos is quite unique from what you usually see with other cryptocurrencies. The people who mine this currency are famous as bakers and they have to put their money on stake to be a part of the “baking” process.
Since the end of 2010, this cryptocurrency has been seeing a steady increase in its value. More importantly, 2020 has been the best year for it with its current value hovering around $2.70 USD.
Ripple, or XRP, is yet another promising cryptocurrency that could be a part of the financial standards of the future. While the starting month of 2020 might not have been the best for this cryptocurrency, it has always been steady in its price since its launch. As per the market cap, it occupies rank three among all the cryptocurrencies in the world today. In terms of circulating supply, it is one of the biggest cryptocurrencies you can get your hands on. The idea behind this cryptocurrency is to make the transaction of money and value as easy as sending emails over the internet.
When it comes to transferring money from one country to another, the banking systems are still pretty slow to this date. Ripple aims to make that process faster and allow for the exchange of not just credits but debts on the internet too. If nothing, Ripple will make the transfer of money faster than it is today because of the old banking systems that we are using.
If you have researched online brokers that allow you to trade cryptocurrencies on their trading platforms, you will notice that the cryptocurrency that usually appears with Ethereum and Bitcoin is Litecoin. Yes, it is that famous of a cryptocurrency and is destined to be even bigger in the coming times. It one of the most valuable cryptocurrencies available today, with its price at nearly $74 at the time of writing this. Litecoin brings the concept of open-source to the blockchain world. You might want to know why this currency exists in the first place. Well, you just have to look at its name.
Yes, you still have the biggest cryptocurrencies taking around 10 minutes for confirming new blocks on the blockchain. In attempt to reduce that timing, Litecoin was introduced and it was successful in doing that. Block confirmation for this currency happen four times faster than those of Bitcoin.
So, there are quite a few factors that you need to consider before you invest in a particular cryptocurrency. You just have to realize that there are now thousands of cryptocurrencies for you to invest in. First, you have to make sure that you invest in a safe one. Once you are done with this phase, you should make sure that you invest through a safe platform that can ensure you not losing your money all of a sudden.