Cryptocurrencies have proven as a viable option for financial investments and are understandably becoming more and more popular. Surveys show that a staggering seventeen percent of Americans admit to having invested in cryptocurrency, with that number being even higher all around the world.
It isn’t just the adult population that has embraced cryptocurrency. Statistics show that Gen Z is far more likely to be curious about, and invest in cryptocurrency. It isn’t just Gen Z that are becoming curious about crypto. A quarter of millennial millionaires have been shown to have a huge portion of their wealth invested in cryptocurrency, with many of them also owning non-fungible tokens.
While bitcoin is undisputedly the most prominent, and high-priced cryptocurrency, there are so many more options to choose from. The number of cryptocurrencies on the current crypto market number in the thousands, with some estimating the number has reached ten thousand different cryptocurrencies. With so many different choices to pick from, how does a new investor know where to begin? In this article, we will offer a few tips on how to pick the best option.
Investigate the Best Options
There are currently thousands of cryptocurrencies on the market. This can confuse people, and overwhelm a lot of investors. Luckily there are easy ways to figure out what cryptocurrency is best for investing in. Step one is to take a look at the coins that are most often talked about by analysts and experts. Among these, you will see Bitcoin, Ether, XRP, etc. Then, you will need to find the best websites that trade these coins. If we take Ripple as an example, find a good website that gives you a basic tutorial on how to buy XRP, and then trade it for cash.
The most popular cryptocurrency has consistently been Bitcoin. Bitcoin’s current value sits at $35.000, with many analysts claiming that the price may skyrocket in the future. Some analysts claim that by the next decade, 99% of Bitcoin will most likely be mined, at which point the value of a single token might reach half-a-million dollars, a hitherto unprecedented development in the history of cryptocurrency.
Other popular, respected, and proven cryptocurrencies on the current market are Ethereum, worth over $2000, Tether, a stablecoin supported by the dollar, yen, pound, etc. worth $1, and Litecoin, worth $139.
Crypto Trading Site Support
One of the things that will help you pick the best option is to look into the many crypto trading sites and the different cryptocurrencies those sites support. Most trading sites support a wide range of altcoins, with Bitcoin, Ethereum, Ripple, Litecoin, etc. being the most prominent. Make sure you look for these websites and don’t get bogged down in a site that only focuses on one, single cryptocurrency.
Not only that, but these sites offer a number of benefits to new investors. For one, they are easy to access and use. All you need is to create a profile on one of these sites. Many offer beginners an investment tutorial. To make the investment even easier, they incorporate artificial intelligence technology, the purpose of which is to read the fluctuation rates of bitcoin prices and predict future values.
Investigate the Price History
Many new investors make the mistake of seeing a trending cryptocurrency, and quickly invest in it while it is highly-priced. This is a common, and easy mistake to make. It stems from stuff like fear of missing out, or a lack of patience. The problem with this approach is that it forgets to take into account the high rates of fluctuations that permeate the crypto market. A cryptocurrency that suddenly gained prominence one day, might plummet in value the other.
Rather than jumping in, let a cool head prevail, wait a few days, and most importantly investigate the price history of the cryptocurrency. Let’s take Bitcoin as an example. If we look at Bitcoin’s price history, we can see times when it has plummeted in value, however, for the most part, it has stayed highly profitable. There might even be long stretches of time, when Bitcoin remains unprofitable. However, after a while, there always seems to be a new boom in interest surrounding the first cryptocurrency.
The same can be said for many of the other famous cryptocurrencies. Just last year, for example, Ethereum was seeing an all-time high level of interest. Elon Musk’s support of the altcoin had gotten a lot of attention from a lot of people. The value skyrocketed to over $2000. In the subsequent months, however, most people forgot about Musk’s endorsement, lost interest, and the coin’s price fell to barely $1000. Today, it sits comfortably at close to $1500, and many are expecting the price to grow in the future.
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