The cryptocurrency trading industry has enjoyed massive attention in the last couple of years. When we first heard of this digital currency in 2009 with the release of the decentralized Bitcoin, most people were skeptic about the potential of this new asset.
Today, with the trust that humanity has put into the cyber-currencies, we see the rise to fame of dozens of tokens. Things have changed dramatically since 2009 and in the last two years suddenly everyone became interested in the industry and wants to participate in it.
Cryptocurrencies are a type of digital assets that can be traded on a cryptocurrency exchange platform. They are a subset of alternative and virtual money. The main difference with all other mediums of exchange is that cryptocurrencies are a subject to decentralized control.
Because of the rapid expansion of the industry and the huge demand for tools, software developers, exchanges, and broker platforms have made the effort to create safe and useful environments for trading and investing in cryptocurrencies. This has provided ordinary people with the chance to enter a field that has been shrouded in mystery for a long time.
Of course, this participation led to the question which is the best cryptocurrency to invest in. Mainly because there are so many digital assets to choose from. There are more than a thousand currencies known in the crypto field.
Good to Know
The dynamic nature of the cryptocurrency investment field has led to rapid changes in the value of all major cyber-currencies. Sometimes, dramatic shifts can occur in the span of just 24 hours. This implies that the best cryptocurrency to invest in is not constantly the same one. Things change quickly and there are many things you should take into consideration in order to stay ahead of the markets.
Which Was the Best to Invest In 2017?
The craze in the industry began with the rapid increase in the value of Bitcoin. The cryptocurrency skyrocketed in price in 2017 because of the huge demand for it. The limited supply of the currency also drove its price up even further. The first half of 2017 was the ideal time to buy some Bitcoin tokens – its price reached an all-time high at the end of the year.
The increase in the value of the Bitcoin drove the prices of other cryptocurrencies because people saw and demanded to acquire the potential of this new digital asset. Currencies like Litecoin, Ethereum, Bitcoin Cash (which is a hard fork of Bitcoin) quickly gained positions, even the tiny Ripple price spiked. Altcoins quickly became worthy of being named the top cryptocurrency to invest in 2017.
Investors usually look for assets to buy them for a small price and then sell them at a higher price. Interest quickly shifted from Bitcoin to competitive cryptocurrencies because at the end of 2017 they were significantly more accessible price-wise than the Bitcoin. The tendency is kept in 2018.
Top Cryptocurrency to Invest 2018
Tides have turned at the start of 2018. After reaching a sky-high price, the Bitcoin plummeted in value and caused a lot of losses for global investors. This made them turned their sights on less popular and much cheaper cyber-currencies to buy and sell. This was in a way a precautionary measure. People started to allocate their resources to other cryptocurrencies. This drives the demand for Bitcoin down which considered against the limited supply had a bigger effect on the value causing it to even out around the $10k level per coin.
At the time of this article being written, the price is around the medium levels of last year. It is a little over $6,000 per coin and it seems to have stabilized in value.
Supply and demand are the two things that directly affect the prices of cryptocurrencies. But there are factors that have an implicit impact on cryptocurrency trading and prices. Even though this digital asset is decentralized, governmental decisions can influence its value. When countries forbid their trading and refuse to recognize cryptocurrencies as a legal medium for exchange for businesses, for example, this influences the supply and demand. They then drive the prices of the tokens of the different cryptocurrencies.
It has become clear that Bitcoin is still the leader in the industry but it is not going to be the top cryptocurrency to invest in 2018. Its price is still very high and the tendency is for it to keep rising further, although at a slower pace than it did in 2017. Currently, the most promising investments can be made in cheaper cryptocurrencies like Ethereum, NEO, Dash, IOTA, even the Ripple autobridging cryptocurrency and the rest of the top competitors. The increased demand for these currencies is going to drive their prices up and lead to profits for investors.
You should not forget that cryptocurrencies and their networks come from technological start-ups. Meaning they are owned and distributed by people with the potential to introduce further technological innovations. The best example for that is the Ripple cryptocurrency.
Technological innovations are a cause for a price increase. So if you closely monitor developments in the industry in this aspect, you might catch the next big innovation and make the most lucrative investment decisions based on your information.
Is there a Universal Choice?
No one can guarantee you that the cryptocurrency you invest in is the top choice you can make. This depends on your own personal preferences and views on the market. It is of a crucial importance that you also have the right tools at your disposal and that you invest and trade only on legit and reliable cryptocurrency exchanges and with authentic brokers.
A Rule of Thumb
Even if you are sure you have discovered the best cryptocurrency to invest in 2018, don’t put all of your eggs in one basket. It is a fundamental economic and investment rule that you should allocate your capital across investments with different levels of risk in order to build a balanced portfolio. In this way, if you generate significant losses from risky investments, you can throw off the effect with investments that carry smaller returns but also less risk.
Always keep in mind that the online trading industry, especially when it comes to cryptocurrencies, is extremely volatile. A key importance for your smooth trading experience has psychological preparation. Losses will occur but that should be something you can handle. Turn off your computer or device, go out for a stroll and clear your mind. If you yield to emotions, you will most certainly make some unreasonable choice and you will hurt your investments even further.
If you have managed to build a portfolio that has a balance, you might be able to throw off losses. But always remember no one can be completely safe from mistakes. You can assist your efforts with finding additional learning materials as well as signing up for platforms that can provide you with help, training, and mentoring. If you are serious about making it in the crypto world, you can.
No matter which asset you consider to be the best cryptocurrency to invest in 2018, this year is going to be the year of cryptocurrency trading. This is a bright time to join the processes.
Hello, I am Collin Tyusm. I am a Forex blogger. I have created my blog, because I want to help people learn more about Forex & CFD Trading Software and Bots.