The year 2017 was massive for cryptocurrencies, and 2018 seems no different. The virtual currency is only growing but some of the beginners and budding companies have issues finding the next cryptocurrency to invest. The trend of the virtual currency in the global market needs no mention today. As the rage is growing so is the popularity. But that brings the additional baggage of taking some time out of your busy schedule to be able to understand the function of this cryptocurrency.
Don’t worry, we all have been there and we know it is confusing to make the decision on your very first investment. So, here is the helping hand just for you to educate you on the cryptocurrency investment you must look forward to gaining exceptional benefits.
Preview on the cryptocurrency so far
It was in 2009 that Bitcoin was invented as the very first cryptocurrency. It was merely the beginning and nobody was aware of the power bitcoin had. It was only in 2013 that people came to know about bitcoin and the potential it was having. Since 2013, the market has shown an impressive growth, it is like a success that is hard to ignore. The impact of the cryptocurrencies can easily be guessed from the fact that there are over 1500 virtual currencies that have come into existence in the past five years.
The year 2017 brought an emerging growth to the cryptocurrency architect and the ongoing year is also bringing a significant contribution to the concerned landscape. The cryptocurrency ecosystem is not only about bitcoin today. It has added a number of other virtual currencies too to offer a number of options for the users to invest in, here is an insight.
Before we discuss the best cryptocurrency to invest in let’s talk on why even we should consider investing in cryptocurrencies?
So what’s the best cryptocurrency to invest in?
According to the Chiang Rai Times, Bitcoin or BTC has the tag of being one of the prominent and the most traded virtual currencies. Bitcoin holds 40% in the entire cryptocurrency ecosystem. So, is it a good idea to invest in bitcoin? Hold on for a second we will explain other metrics to help you make a better decision. Last year the price of bitcoin raised as much up to $20,000 from the initial price of $76. That is a huge rise in the price and thus investing in bitcoin seems to be a good idea.
How to invest in cryptocurrency
If you are only looking to invest in cryptocurrency and not buying, selling or trading in this virtual currency, you have got a few options. Your options include the GBTC trust (bitcoin investment trust), a cryptocurrency IRA, or an exchange-broker-wallet like Coinbase and GDAX that allows users to buy and sell actual cryptocurrency. The options listed here have their pros and cons and thus it requires an in-depth knowledge prior to investing in these options. Among all these options, only Coinbase and GDAX allow users to invest directly in the cryptocurrency.
The pros and cons of investing in cryptocurrency:
Investing in cryptocurrency brings along a number of positive and negative impacts. Here are some points to consider:
The Pros
- The cryptocurrency market is young: The cryptocurrency market is still young and thus there is a good chance that you could get the best investment from the same. Buying cryptocurrencies at high prices is still a good idea as it could bring huge ROI on your investment. Hence, considering the bitcoin trading is definitely a good idea.
- The market is volatile and can offer the right perks: Since the market is volatile, investing (buying and selling) at the right point can help you get benefit twice or thrice of the investment you had made. You can often buy low and sell high owing to the structure of the trade in the cryptocurrency ecosystem.
- The decentralized structure seems pertinent: The decentralized structure of bitcoin or the cryptocurrency trade validates every single transaction and eliminates the requirement of third-person to perform a transaction. This seems pretty impressive for those who are interested.
The Cons
- The volatile market swipes down greatly: The volatile cryptocurrency market sometimes swipes down hundreds of dollar that may incur great losses. The price bubble can thus impact the users greatly. So, it is advised to make the transactions carefully.
- The only way to trade in cryptocurrency is to buy it: In case you need to invest in stablecoins or cryptocurrency, you need to buy it. Getting Involved in the transaction may seem to incur losses sometimes. Thus, it requires great knowledge to invest in this global ecosystem.
- A boom can allow low-quality coins to penetrate the market: A boom in the cryptocurrency market may seem a good news for investors but it comes along with an additional risk of penetrating the market with a low-quality virtual currency that in the long term may not seem profitable.
Why is cryptocurrency market booming?
From the above discussion, one thing is sure that investing in cryptocurrency is profitable and such transactions bring a bit of con as well. But every business has some negative points, which is just a part. Here is more on why to invest in cryptocurrencies.
- No need to pay taxes on profits: Cryptocurrency investment is not recognized as a real transaction and therefore the investors are not eligible to pay taxes on their profits. Additionally, cryptocurrency assets always go up and that is a benefit to invest in this virtual currency.
- Safety from fraud: The cryptocurrency transaction occurs hand-to-hand and blocks are generated after every transaction. This makes it secure enough to trade in this currency.
The Upshot
Cryptocurrency investments are a lot beneficial. The users could get impressive returns. Although, the downside can impact the market and traders alike and the fact that every business has some downside makes it completely ok. In case, you are also looking to make the transaction, do start trading in this ecosystem with bitcoins first. To stay updated with what’s going in other segments of crypto, you can also read our take on Initial Coin Offerings (ICO).
MobileAppDaily has just released a report on the top blockchain developers. The report has been researched, validated, and then rolled out to help clients get the best assistance from the top blockchain experts.
By Vikram Content Manager
Content Writer at MobileAppDaily
Vikram is an experienced wunderkind, who embraced technology at a very early age, and today he is at the helm of it. Mobile apps are something that excites him the most, and now he is up to give this vertical the best shot. He routinely catches up with the new apps and comes up with the top apps that can excite you to the core.
latest
