It is better not to spend free money on any nonsense, but to invest profitably. There are a lot of directions for this, from starting a business to buying gold.
But lately, a digital asset – cryptographic money – has been gaining popularity. It's not hard to buy them courses keep growing There is a lot of information on the internet.
Is it worth investing in Bitcoin and other cryptocurrencies? The question is good, because not everyone can make money in this market. I must say right away that I myself have been investing in digital coins for a long time, so the article will have a positive answer.
However, I want to warn beginners - you need to at least a little navigate the niche, otherwise nothing will come of it.
Why are cryptocurrencies so popular?
All cryptographic money is created for a specific purpose - fast, anonymous transfers without commission, signing smart contracts, reducing commissions for using services, receiving dividends, and so on.
Some useful features are already a reason to use tokens.
Only now the main purpose has passed into the background. First of all, people consider cryptocurrencies as an investment tool.
This is what caused the rapid development of this market. Demand is growing, everyone wants to buy Bitcoin (its analogues), and the greater the demand, the higher the price.
The value of a currency directly depends on its popularity. Anyone can make money on the movement of courses, but you need to start by studying the intricacies. Be sure to read.
This article provides explanations for other important points. Without the basics, figuring out when and which altcoins to buy will definitely not work.
Is Cryptocurrency worth investing?
For myself, I have already drawn conclusions, my answer is yes, it's worth it. If you learn how to predict rates and choose the best time to enter the market, you can raise income in just a few hours. Don't believe? I will show the simplest example on the Bitcoin quote chart:
At almost 6 am, for 1 BTC they gave $11,086, and at 10 am, the rate rose to $11,561. Who had 1 bitcoin, became $400 richer in just 4 hours, doing nothing at all.
At the same time, it is not necessary to invest a lot of money and buy a whole coin. You can also invest $100 by buying 0.009 BTC (at the first rate), and then sell them (at the second rate) and get $104.
Yes, with small amounts, the income is not so large, but the period of time is also insignificant. You can invest for a long time and wait for an increase in the rate of 1-5 thousand dollars.
In addition, there are other cryptocurrencies, their rates can change during the day for dozens of positions.
Is it worth it to engage in cryptocurrency, the pros and cons
Before you choose some way to increase your capital, you need to understand all the positive and negative points. Experienced investors invest in cryptocurrencies for the following reasons:
- The rapid development of the market.
Many banks have connected to blockchain technologies, and all this has a positive effect on quotes.
- Stability of popular tokens.
The capitalization of well-known cryptocurrencies is so large that they simply cannot take and “evaporate”.
According to the latest data, the market capitalization of Bitcoin (it is currently the highest) is $194,538,231,756. Just think about this figure, some states have smaller budgets.
- High liquidity of coins.
Everyone around is talking about crypto money, they are bought and sold daily for billions of dollars all over the world.
Finding offers for sale is not difficult, orders are inundated. Similarly, it is not difficult to find buyers, the number of people who want to invest in Bitcoins and its analogues is growing steadily.
- Complete independence and anonymity.
Cryptocurrency rates do not depend on the situation in the country or other economic factors. Moreover, no one can close them, delete or cancel them. This is a decentralized system where hacker attacks and hacks are excluded.
In addition, no personal data is required to store the crypt, complete confidentiality.
- No costs.
When buying crypto, you do not have to pay for anything. Depending on the selected service through which the transaction is concluded, you will have to pay a small commission. As a rule, it does not exceed 0.2%. You can store coins for free, but it is not safe (more on that below).
- Investing is really easy.
Anyone can make investments in cryptocurrency, just register a wallet, find favorable conditions and exchange real money for tokens. To make money on this, too, a great mind is not required, you find a buyer and sell your assets.
- You can start with any amount.
There are no restrictions, even if you have a few dollars, you can find a cheap promising cryptocurrency and invest for a long time.
In one of the articles, I already said. Agree, 2800 rubles is not such serious money to give up prospects.
- Large selection of assets.
Every day, the number of altcoins is increasing. They are created for different purposes, are sold at a low price and have development prospects. In addition to the fact that this allows you to choose profitable assets, you can expand your investment portfolio and diversify risks.
- Chance to catch a "lucky ticket".
In theory, every new cryptocurrency has a chance to break into the TOP. Some coins are worth less than a cent, just a dollar can buy more than a hundred tokens. If you are lucky and in a couple of years they will “grow up” like Bitcoins, you will become a millionaire without doing anything at all.
There are many more positive aspects of investing in cryptocurrency, so the number of investors is growing daily. However, This method also has some downsides:
- it is difficult to predict the exchange rate;
- there is a lot of false information on the Internet;
- there are risks that the rate of the selected altcoin will fall;
- you need to pay for the safe storage of cryptocurrencies;
- many unpromising altcoins;
- This niche is a scam.
It is worth mentioning separately about the storage of cryptocurrencies. Keeping tokens on exchanges and online wallets is too risky, they can close or be hacked.
The ideal protection option is to buy Ledger Nano S. A hardware wallet provides maximum security, but you will have to pay about $100 for it.
Buy cryptocurrency now or not, what are the forecasts?
In 2016, only Bitcoins were popular, BTC accounted for 80% of all cryptocurrency transactions. Today, this figure is below 50%, because the market is developing and new tokens are also gaining popularity. Obviously, all this helps the niche expand.
In Japan, cryptocurrency is accepted at the state level, in the USA they began to sell futures for crypto money, for several years plastic cards with a balance in Bitcoins have been issued, they can be used to pay for the services of providers, mobile communications, throw money into online games and so on.
Moreover, new crypto-related startups are constantly being launched. Tokens today are even offered for investment in stars (on TokenStars). Decentralized cryptocurrency exchangers are actively developing.
In general, this market definitely has a future, and whoever invests correctly today will receive a good profit.
How do you earn on cryptocurrency?
Professionals make quick deals, buy back coins in the short term and resell them within a few hours.
This activity is called trading and it is quite difficult to engage in it. First of all, because it is practically impossible to predict the rates of tokens.
Beginners choose a different way, they buy coins for a long time. This is no longer trading, but investing. If you are not well versed in the topic, then it is better to choose this method. Is it profitable enough? More than that, using the example of the Monero course, this is easy to prove:
In March 2017, you could buy 10 XMR for $138, and in January 2018, these 10 coins could already be sold for $5,420.
But someone managed to make such a contribution and turned 7,700 rubles into 300,000 rubles. Yes, it took almost a year, but nothing had to be done. I bought some coins, waited, sold, earned.
Where and how to buy Bitcoins and other altcoins?
Exchangers and exchanges are available for transactions. The first option is the fastest, but not profitable. On exchanges, transactions are carried out between real people. Those. you will buy or sell altcoins to another project participant.
Sometimes you have to wait a long time for someone to use your application, but you manage to buy and sell coins on the best terms.
I am registered on several major exchanges, I advise beginners to Exmo. Here is the most convenient interface and the main crypto coins are available. To invest in cryptocurrency, you need to register and replenish the balance with fiat money:
For dollars and rubles, many different methods are offered. You can use bank cards only after verification (verification is not required):
After transferring funds to the internal account, you need to go to the "Trading" section and select the currency to buy there. Compared to other exchanges, Eksmo does not have the largest selection:
What price to set when buying cryptocurrency? Pay attention to orders created by other users. Set an approximate rate or simply select an application. By clicking on it, the form will be filled in automatically and the transaction will be carried out instantly:
Wait for really profitable offers, they appear periodically. Unfortunately, you also have to look for orders with a suitable amount of coins.
By making a deal, you become the owner of the tokens. Whether it is worth storing cryptocurrency on the exchange is up to you, you are warned about security.
Conclusion
Whether to buy cryptocurrency now is up to you. I myself have already invested in various tokens. Everything suggests that this trend will continue in the near future, and even in unforeseen situations, the exchange rate should not fall much, so you won’t lose everything at once.
The most important thing is not to invest everything in one currency, but to correctly distribute your capital. It is also worth counting on long-term investments, they are the most profitable.
Buy tokens while they are cheap, once Bitcoins were sold for $100, but then few people invested in them, because the market was not developed.
I recommend visiting the following pages:
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What is the best cryptocurrency to invest in? What are the features of investing in cloud mining? What are the most promising directions for investing in cryptocurrency?
The future that science fiction writers of the last century wrote about has already arrived! The digital currency, which does not belong to any state and is not controlled by anyone, is used with might and main for cashless payments and acts as a tool of enrichment for thousands of enterprising and far-sighted Internet users.
Do you want to join the ranks of successful crypto investors? Then this article is for you!
With you is Denis Kuderin, an expert of the HeatherBober magazine on financial issues. I'll tell you why investing in cryptocurrency- it is profitable, promising and correct, which digital currencies are on the rise now, and how cryptocurrency exchanges differ from exchangers.
Also, you will know how to invest in bitcoins, ethers, litecoins and other crypto-money competently, and why for beginners cloud mining is preferable to traditional mining.
1. Cryptocurrency Investing - Earn money the right way
A few years ago, a revolution took place in the digital universe, which the majority of users simply did not notice. It was a bloodless and silent revolution - someone named Satoshi Nakamoto (perhaps it was a group of individuals) created fully decentralized electronic settlement system based blockchain.
Blockchain is a chain of blocks that store information protected by cryptographic encryption. Copies of these chains are located everywhere and nowhere at the same time - on all computers connected to the network. There is no single blockchain storage server, which ensures its security and protects it from outside control.
The currency that has become a new way of paying on the Internet is called "Bitcoin". This is the world's first digital money that is not tied to any payment system and to any bank.
The cost of bitcoins has increased thousands of times over the years of its existence. Many of those who accidentally bought a couple of hundred bitcoins worth a few dollars in 2009 are now millionaires.
Bitcoin remains the most popular and expensive cryptocurrency in the world, but it is no longer the only digital money in the world. In recent years, dozens of varieties of new cryptocurrencies have appeared. If you wish, you can create your own digital money - if you find the funds for this (cryptographic encryption is expensive).
But to earn on crypto-money, it is not necessary to create a new currency. Invest in existing currencies and earn on the growth of their value.
Almost all varieties of cryptocurrencies are more or less steadily growing in price. At least the currency from the TOP-10 is for sure. You only need to buy it at the lowest price and sell it at the highest.
I will list the advantages of cryptocurrency:
- it is transmitted from person to person according to the principlePeer 2peer– the services of banking institutions and payment systems are not needed;
- it is an international means of payment- use it in any country where the Internet is;
- your crypto wallets cannot be controlled– no one has the right to freeze your account or limit the amount of the transfer;
- low transaction fees– in comparison with commission fees of banks and payment systems;
- The value of cryptocurrencies is steadily growing- only in 2017, bitcoin rose in price by 4.5 times, and ether for 4 months increased in price by 295%.
There are several ways to invest in cryptocurrency − direct purchases, exchange trading, investments in mining(cryptocurrency mining). All options are good in their own way, some require large investments, others are available for users with minimal initial capital.
It must be said about the minuses of cryptocurrency, since they are present. This money is not recognized by state structures, including the government of the Russian Federation. The absence of centralized control is an absolute plus, but it also means that you make all transactions with bitcoins and other “coins” at your own peril and risk.
Another disadvantage, which often turns into an advantage for the speculator, is high volatility of cryptocurrency. The course changes every day. Inexperienced investors often panic and start draining capital when there is even a slight downward trend.
Economists and financial observers are calling for caution in dealing with crypto money. Some talk about a bubble that inflates, inflates, but at one fine moment it can burst deafeningly.
Fortunately, this is not happening yet, which allows thousands of people to earn fortunes on bitcoins, litecoins and ethers. If they can do it, it will surely work for us too! Move on!
2. 4 Popular Ways to Invest in Cryptocurrency
The easiest investment option is suitable for those who have initial capital. You just need buy cryptocurrency with this money and forget about it for a while. The method is promising, but too long. If you have a little money, respectively, and earnings will be modest.
There are more profitable options - we will study them.
Method 1. Buying or exchanging cryptocurrencies through exchange offices
The network has a lot of exchange offices that operate on the principle of street exchangers, only they have wider functionality and more currency pairs for exchange.
Here they change not only rubles for dollars and euros, but also the currency of various payment systems such as YandexMoney, Qiwi, WebMoney. They also exchange cryptocurrencies. Not all, but only the most popular and popular varieties.
How to earn? Look for the best rate, buy cheaper, then sell at a higher price.
Method 4. Investments in cloud mining
Equipment for full-fledged (classic) mining costs a lot of money. It is not enough to find funds to buy expensive video cards, power supplies and other hardware, you still need to be able to connect and configure all this. Experts say that such a farm will pay off at best in 1-1.5 years.
But there is an alternative - cloud mining. What is it, I will explain with an example.
Imagine that you are mining diamonds alone. You need a drill to drill into a diamond vein, you need equipment to safely descend into a mine, and tools to mine diamonds. It will be a classic mining - the extraction of cryptocurrency in an artisanal way.
Cloud mining is industrial mining. You do not work alone, but become one of the investors of an entire mining company. This enterprise has professional equipment, and the efficiency is hundreds and thousands of times higher.
Your income in this area is proportional to the invested funds, and the extraction itself is carried out in an automatic or semi-automatic way.
3. The most promising areas for investment - 7 cryptocurrencies that earn
I present an overview of the 7 most promising cryptocurrencies at the time of writing.
This digital money is steadily growing in value and is not going to fall.
1) Bitcoin
The first cryptocurrency on the planet. More and more online stores and companies are accepting BTC as payment for goods and services. With this money they buy air tickets, cars, book hotel rooms.
The number of bitcoins, like many other cryptographic currencies, is limited. It's like gold it is getting harder to mine, and the reserves are getting smaller. This is partly why we have seen a steady increase in the BTK exchange rate over the past few years.
2) Ethereum
Cryptocurrency Ethereum or broadcast takes 2nd place in popularity. The currency appeared in 2015 and almost immediately after the launch it began to grow steadily in value. Connoisseurs consider Ethereum the only worthy replacement for Bitcoin at the moment.
The authors of this cryptocurrency do not limit its role solely to payments. The creators propose to use ethers as a means of exchanging resources or to protect transactions in the format of so-called "smart contracts".
3) Litecoin
Litecoin is the name of not only the cryptocurrency itself, but also the peer-to-peer network that underlies it. 1 LTC costs much less than bitcoin, but for an investor this is more of a plus than a minus - you can enter the market with a small initial amount.
4) Monero
It is considered the safest cryptocurrency. The developers have made user privacy a priority, and they have succeeded quite well. In terms of capitalization, Monero confidently enters the TOP-10.
5) Dash
On the slang of stock traders - "dasha". Currency created in 2014. Unlike BTK, Dash uses not one, but two different algorithms for encryption operations, but mining also requires much less energy.
6) Ripple
Initially, Ripple was a project resembling a decentralized global exchange for trading cryptocurrencies and other goods. Then it was necessary to introduce an internal means of payment - it was also called Ripple. As of 2017, this digital money ranked 3rd in terms of capitalization.
7) Siacoin
It is both a cheap, fast and reliable peer-to-peer network, and a currency with excellent capitalization prospects.
4. How to Invest in Cryptocurrency - A Step by Step Guide for Beginners
The process of investing in money that is not supported by any bank in the world deserves a thoughtful and professional approach.
Expert instruction will help to avoid the main mistakes of beginners.
Stage 1. Choosing an investment method
Choose a method depending on the budget and the time you want to spend on making a profit. I will say right away that exchange and mining is a long-term and risky option s requiring preparation.
For those who have an amount of initial capital close to zero, I recommend trying your luck at. There is no need to invest anything at all - you will only waste your time.
Stage 2. Creation and replenishment of an electronic wallet
In addition to a bitcoin wallet, intermediate places for storing reserve funds may come in handy - YandexMoney, Qiwi, etc.
Stage 3. Buying bitcoins or another cryptocurrency
We buy BTC or other digital money on the exchange, in the exchanger or on the forum. Or we get them with the help of mining and store them on the account.
An example of a bitcoin wallet
It happens that a profitable deal is pecked out already on the first day of trading on the exchange - someone sells or buys crypto-money at a favorable rate for you. If you are ready to take a risk, there is a chance to enrich yourself by several thousand rubles at once.
Stage 4. Analysis of the market situation
Oddly enough, but one of the most profitable exchange strategies is not buying / selling and speculation, but calm waiting.
If you are ready to wait several months, half a year, a year, you have every chance to increase your capital by doubling, quadrupling and even 10 times. In 2017, this already happened - some cryptocurrencies rose in price by 100-400%.
Stage 5. Sale of cryptocurrency and withdrawal of funds
Converting digital money into real money is also a critical stage of the process. I again recommend using exchanger monitoring for this. If you operate with large amounts, then finding an exchange office with the best rate will save you tens of thousands of rubles.
5. Where can I get cryptocurrency - an overview of the TOP-3 exchanges
Each exchange own trading conditions, own exchange rate, own commission for input and output. Some resources have a Russian-language interface, others require basic knowledge of English.
It is important to understand that the exchange itself does not sell or buy anything - it is only a platform for secure transactions between users.
1) EXMO
A popular platform in Runet that provides everyone with access to cryptocurrency transactions 24/7. Intuitive interface, convenient functionality, always available support service. More than a quarter of a million users, all popular cryptocurrencies are available.
I myself used the services of this exchange, deposited and withdrawn bitcoins from it, communicated with operators in the chat.
An old-timer among cryptocurrency exchanges, one of the first exchanges working with bitcoins. Founded in 2011, located in San Francisco, California.
At the time of writing, 57 currency pairs are traded here. Commissions depend on the volume of transactions and time spent by the user on the exchange.
A promising exchange that is gaining popularity around the world. Founded in 2014, supports 100 currency pairs to exchange. Almost all known cryptocurrencies on the planet are represented here, including even those that are less than a year old. The interface is English, but the basic principles of operation are intuitive.
Exchange comparison table:
6. 3 golden rules for a novice investor
And finally, a few simple but useful rules that beginners should never forget about.
Remember and put into practice.
Rule 1. Follow the basic rules of deposit management
Follow the universal rules for managing investment funds - do not invest the entire amount in one direction, do not count on quick profits, do not trust control over assets to dubious intermediaries.
Cryptocurrency has no physical analogue. This is electronic money (digital codes) that are produced (hardware mining on video cards, cloud mining) and stored on the Internet in electronic wallets.
The first electronic currency (bitcoin) was released in 2009, it is by far the most expensive. Now the number of coins goes into the thousands. For example, the top 20 by market capitalization:
- bitcoin
- Ethereum
- Tether
- bitcoin cash
- Litecoin
- Stellar
- Bitcoin SV
- Cardano
- BinanceCoins
- Monero
- Ethereum Classic
- USD Coin
- waves
Issue new types of currencies for specific tasks. For example, bitcoin was developed for transactions, it acts as virtual gold. Litecoin is considered an analogue of electronic silver. There is a cryptocurrency for owners of Facebook accounts - Face. There is IOTA, a popular means of payment in the Internet of Things category.
On a note!
Experts believe that IOTA will be in demand, and in 2-3 years it can bring profit. To obtain IOTA, Tangle technology is used; mining is not required for its production.
Cryptocurrency features:
- decentralization;
- lack of regulators, controllers;
- complete anonymity.
Possible risks
Any financial investment is associated with risks. Investing digital money has its own characteristics. Financial risks have their own specifics, it must be taken into account when investing.
Course jumps
Large holders influence the e-currency market. A large volume of coin sales can cause a sharp drop in the rate. Cause his jumps good and bad news. After the appearance of information about the legalization of Bitcoin in Japan, the value of the main cryptocurrencies jumped sharply.
Reasons for exchange rate instability:
- limited editions of bitcoins;
- decentralization.
Regulation
In all countries of the world, control over the work of crypto exchanges will be tightened. Tokens and cryptocurrencies will be regulated. To this end, FATF specialists are developing a common regulatory model. In the near future, blockchain technology will affect business and government. The largest investors will participate in its development.
Reference!
FATF is an intergovernmental organization that develops global standards. The purpose of the developments is to regulate the methods of combating financial terrorists and money laundering.
The identification of the owner of the coins will become transparent. Uniform, rigid identification parameters will be applied to the players of the crypto market. Digital assets will be heavily regulated. In 10 years, according to international experts, the quality and appearance of digital money will change dramatically.
Loss of crypto wallet
Digital money is stored on one of the many exchanges or on your own crypto wallet. A wallet is an application on the phone or some kind of media, such as a flash drive, hard drive. Losing electronic money is easy:
- computer failure;
- flash drive failure.
I forgot my password and a secure wallet cannot be returned. It has no owner, there is only an identifier on the network. Wallets whose password can be recovered through the application are considered untrustworthy.
Exchanges
Storing cryptocurrencies on an exchange is also associated with risks. These are commercial projects that can go bankrupt or close at any moment. In this case, you can lose all funds. The cause of the crash may be technical failures.
Coins can be lost due to the negligence of the site operator where the crypto wallet is located. Often the reason for the collapse of the exchange is the lack of working capital. Investors have no guarantees for the return of cryptocurrency. Using the services of the exchange, the owner entrusts his wallet to her.
hackers
The danger is hackers - these are electronic scammers. They illegally gain access to wallets, withdraw all funds from them. An example of a major scam is the hacker attacks on the Gatecoin exchange. Because of them, people have lost almost 2 million dollars worth of coins. Other exchanges were also subjected to powerful cyberattacks. Cointrader lost all its funds due to hackers.
scammers
In the world of electronic money, there are scammers who build financial pyramids. There are sites and viruses that collect data about electronic storages. Cyber scammers use:
- password guessing applications;
- ransomware;
- fake links;
- key logger programs (the software remembers the keys pressed).
Reference!
Phishing is a tool of cyber scammers. Means unauthorized access to personal data.
Conclusion
When planning to invest in digital money, you need to follow certain rules. Do not make large investments in ICO. Requirements for these projects from the state will become tougher. Therefore, not everyone will be able to fulfill their obligations to investors.
Funds should be invested in top cryptocurrencies. Work with licensed exchanges. Bypass crypto exchanges that take the number of transactions. Work with services that offer to pass identification. When forming the legal field, identification will help protect your interests.
“How to choose a cryptocurrency for investment?”- a question of interest to an increasing number of potential investors, people who understand the unlimited potential of the cryptocurrency market. A question that seriously disturbs the minds of people far from the sphere of finance. And a question that in 2020 will become even more relevant and requires a clear answer.
Before choosing a cryptocurrency for investment, you need to understand what can you choose from.
coinmarket.com has a list of all digital currencies available for purchase, ranked in descending order by total market capitalization.
The first is Bitcoin, which is the leader not only in terms of total capitalization and time of creation, but also in terms of status and universal recognition. It is followed by other cryptocurrency projects launched at different times, somewhere significantly different from the progenitor coin, and by some criteria even surpassing it.
Indeed, some very young and little-known digital currencies may have much greater potential in the future than their eminent "brothers".
Therefore, in the list of the best cryptocurrencies for investment in 2020, along with the famous bitcoin and ethereum, younger ones are confidently placed. litecoin, ripple, and others.
No one knows and cannot know exactly how events will develop and how much this or that cryptocurrency will cost by the end of 2020. You can listen to your intuition, read publics and forums, you can even go to a fortune teller.
But the most competent thing is to study the objective factors that really influence or can influence the course of events.
And supplement this knowledge forecasts from experienced experts based on real analytical data. Such an integrated approach will help you find the treasured promising cryptocurrencies for investment in 2020 and make the right informed choice.
What is the best cryptocurrency to invest in in 2020
The attentive reader will notice that the question “ Is it worth investing in cryptocurrency? We have already answered. And the answer is definitely yes. Another thing is in which digital assets it is better to invest money.
In addition, in our opinion, it is worth investing in 2020 in the digital currency that offers the consumer what he needs.
A cryptocurrency project must meet the needs of users. Promising projects are distinguished introduction of unique technologies and innovative solutions, which solve existing problems and give users more opportunities to earn money. At the same time, promising projects simple and affordable, operational and flexible. Before investing in a cryptocurrency, a potential investor does not want to spend time studying how this or that system functions. Everything must be intuitive, transparent and practical.
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Which cryptocurrency is profitable to buy for the long term
The number of digital currencies that can be bought in 2020 is measured in thousands. Such an abundance of proposals both pleases and scares at the same time. On the one hand, it is good that there is a choice, on the other hand, it is quite difficult to distinguish the wheat from the chaff and understand which currency is profitable to buy now. Some users focus purely on the TOP-10 and are sure that if you are looking for which cryptocurrency is better to buy today, then everything that is outside the top is not worth attention. Others, on the contrary, are of the opinion that in 2020 it is better to buy young but promising currency, as it is more adapted to the modern market.
In 2020, you need to buy a cryptocurrency that:
- meets the technological needs of the market;
- understandable, convenient and practical for users;
- looks reliable and promising.
If the currency you have chosen meets these criteria, then it is better to buy it right now, as the chances that your investments will multiply many times in the future are very high.
It is also now profitable to buy cryptocurrency with the expectation of long term investment. Simply put, "Buy - and keep." As a rule, long-term investments are investments from 3 to 5 years, high stability of income and minimal risk.
A long-term investor is counting on the stability of the rate of his chosen cryptocurrency in the long run. Therefore, for long-term purchases, he chooses assets that have already proven themselves as reliable and profitable investment instruments.
So, if you are thinking about buying cryptocurrency for the long term, then the best options are investments in Bitcoin, Ethereum,. Let's analyze each currency in detail for prospects long-term acquisitions.
Bitcoin (BTC)
Bitcoin is the most widespread and expensive cryptocurrency at the moment. And also the most liquid. It is also the first representative of the digital financial world, created back in 2009. always been first. Even now, when the army of his competitors is in the thousands, he has no equal. Bitcoin has become a brand, its role in the field of cryptocurrencies is as great as the role of the dollar in the global economy.
Bitcoin is on all exchanges, all calculations are made regarding it, all investors are guided by it.
And what is the most interesting thing in this story - for its almost 10-year history its value has never significantly decreased. This rightfully makes bitcoin also the most capitalized and stable digital currency.
However, there are also claims.
The most common criticism of bitcoin is its lack of scalability, which makes transactions on the network expensive and slow.
The developers of the first cryptocurrency are well aware of this drawback of the system and are actively working on the introduction of technologies that will help speed up transactions and reduce commissions. So, the problem can be solved thanks to new technologies such as SegWit or Lighting Network.
Experts believe that the elimination of the main drawback of the Bitcoin network will have a positive impact on the value of tokens, and in 2020 the first cryptocurrency set new price records.
Dmitry Zhulin, co-founder of INS Ecosystem, generally believes that thanks to the development of the blockchain, the bitcoin rate will rise to $30,000 - $40,000 per 1 BTC this year. He explains such ambitious forecasts by the convenience of using bitcoin in various payment systems and as a way to store your capital.
And Trevor Koverko, president of the Canadian company Polymath, does believe that Bitcoin will soon become a full-fledged monetary asset:
“Currently, bitcoin plays the role of a speculative asset or a store of value. However, with the emergence of solutions to problems such as scalability offered by the Lightning Network (an add-on to the Bitcoin network that allows users to make an unlimited number of micropayments), the capitalization of bitcoin will increase dramatically along with the price of this cryptocurrency.”
Ethereum (ETH)
second most popular cryptocurrency, which is considered the most real competitor of bitcoin. And all thanks to the fact that ether has one important advantage over other altcoins: it can be immediately exchanged for dollars without the need to first convert to bitcoins(as is the case with other bitcoin-dependent cryptocurrencies). The demand and popularity of this digital currency is also associated with its unlimited emission. That is, theoretically, it can be mined for a very long time.Ethereum is not just a cryptocurrency. The system is decentralized application development platform. And the more such applications work, the more stable the Ethereum project as a whole and the more expensive the cost of its tokens.
technology based smart contracts, the ether completely turned the concept of the course of financial transactions. Self-executing contracts facilitate the process of concluding a deal and tracking the fulfillment of the obligations of the parties, make the interaction between the parties as simple and transparent as possible. work like vending machines: pay money - get a service. Without the participation of third parties, without lawyers and notaries.
The potential of self-executing contracts is really great, and some experts believe that Ethereum will significantly increase in price in the next few years and overtake Bitcoin in terms of total market capitalization. And if we take into account that the project team continues to conclude partnership agreements with the world's largest corporations and technology companies, then expert forecasts may well become a reality.
Ripple (XRP)
one of the fastest working cryptocurrencies, which determines the huge demand for it among users. Moreover, this Chinese cryptocurrency Ripple has recently been a regular in the TOP-3 in terms of capitalization.The project team is indeed actively working on promoting its product: A large number of agreements are now being concluded with large payment systems (for example, MoneyGam), as well as with Japanese and Korean banks that are testing coin technology. The Ripple cryptocurrency has one significant difference from the leading bitcoin: its authenticity is confirmed by the consensus of the participants in the system.
Many crypto experts believe that this currency grossly underrated.
And they believe that due to its huge prospects, by the end of 2020, the cost of the coin can reach $3 per token.
Litecoin (LTC)
this is the first ever altcoin, one of the most popular today. Created as an alternative to the first digital currency, the Litecoin cryptocurrency solves important problems inherent in the Bitcoin blockchain due to the lack of network scalability (low transaction speed, high commissions).
Therefore, buying a faster and cheaper litecoin is an excellent alternative to investing in bitcoin.
Furthermore, Litecoin capitalization is growing steadily, and if this trend continues, it may well be seen as a worthy investment option for the long term.
Dash (DASH)
Dash is another rapidly growing cryptocurrency. She is characterized high level of capitalization, anonymous transactions, high security, clear and fast operation. According to many cryptocurrency experts, Dash is the key to long-term anonymity and digital democracy(all decisions regarding the functioning of the coin are made by a “direct vote” of network users).
The creators of DASH solved another important issue that many competitors ignored. 10% of the funds from go to direct project financing: hiring and salaries of competent specialists who maintain the network and constantly work to improve it.
Thus, self-financing of DASH provides users with confidence in the future and makes this digital asset even more investment attractive.
TOP 10 cryptocurrencies to invest in 2020
Finally, we propose to consider 10 promising options for investment this year.
NEO (NEO)
Possessing all the main features of a digital currency (decentralization, cryptographic encryption methods, lack of state control), the Chinese NEO cryptocurrency also has strong competitive advantages, thanks to which it confidently settled in the top ten of the currency rating by total market capitalization.
NEO is distinguished by commissions that are significantly lower than in other systems, an energy-efficient PoS algorithm, support for most popular programming languages, which expands the prospects for the commercial use of cryptocurrency.
Cooperation with the Chinese authorities and partnerships with the world's leading corporations also contribute to the stable growth of the coin's rate and its rapid promotion on the market.
Cardano (ADA)
Cryptocurrency Cardano is a decentralized public block chart. Thanks to the powerful technologies embedded in the operation of the system, this project is positioned as a real opportunity to improve the entire smart contract platform and create a new decentralized economy.
Thus, the “stuffing” of the system consists of a powerful core developed on the basis of the Proof of Stake algorithm and the Ouroboros data transfer protocol, as well as the most secure Haskell programming language to date.
In general, the global goal of the developers is to create a new decentralized economy and democratize finance.
Well adapted to the conditions of the cryptocurrency economy, the Cardano coin is also considered as a promising tool for long-term investment.
Stellar (XLM)
Cryptocurrency Stellar, according to its developers, is able to improve the entire financial infrastructure in the world. The project is decentralized consent platform, with the help of which people / companies / financial institutions can easily and quickly make any exchange transactions without intermediaries.
The creators see the prospect of developing their project in partnership with companies and large investors, and not through cooperation with banking institutions, as competitors do.
And in view of the recent partnership agreement between Stellar and the world's record holder for patenting new developments - IBM, after which the cost of the coin increased by 500% in less than a month, we can say that the project development vector was chosen correctly. Experts advise considering this cryptocurrency also as a tool for long-term investment, which will bring tangible profit after 1-2 years.
Monero (XMR)
Monero is considered one of the most anonymous cryptocurrencies. It is chosen by those for whom it is extremely important to remain incognito. Enough quiet but very promising currency.
It is characterized by unlimited emission and a high level of capitalization, which gives it real chances to “shoot” in 2020.
Monero's prospects are also associated with a special mining method for which it is impossible to use ASIC devices. Thanks to the introduction of the CryptoNight algorithm, the process of mining new coins in the Monero network is more decentralized. The growth in popularity of the cryptocurrency is also positively affected by its easy scalability: Monero has no block size restrictions.
IOTA (MIOTA)
A very attractive asset for investment. A feature of the IOTA cryptocurrency is that it functions without commissions and miners.
The developers of the project managed to launch a completely self-sustaining and infinitely scalable network, the users of which themselves confirm the transactions of other users.
Moreover, the project is based not on Blockchain, but on the unique Tangle consensus method. It is also noteworthy that this coin was launched as a means of payment for the implementation of the concept of “Internet of Things” (Internet of Things, IoT). Experts suggest that by 2020 the number of connections through IoT will be more than
It is these three whales that underlie the new cryptocurrency, which, by the way, does not even exist yet. But despite the fact that the project platform has not yet been launched, this cryptocurrency is actively traded on exchanges and the value of its tokens continues to grow. Maybe this paradox is the new future of money?
TRON (TRX)
Cryptocurrency Tron - this is a story about entertainment. This is a decentralized platform similar to social networks, where users watch, post and store various entertainment materials. It is also a platform similar to AppStore Qtum represents hybrid platform, which connects existing blockchains to an Ethereum-like virtual machine and allows developers to create applications and smart contracts based on blockchain technology. Primarily a reliable contract development tool, Qtum also offers users a decentralized method of storing information in the form of transactions on the blockchain. As for the economic purpose of this platform, it is to implementation of blockchain technology in areas such as finance, social networks, gaming, the Internet of things, which will help companies automate many business processes and optimize work.
VeChain (VEN)
Blockchain-Based, VeChain Global Platform digitizes people, objects or events in the real world. So, with its help, you can convert any information, which greatly simplifies the control and verification of goods sold online.
The project already has many successfully implemented cases in such industries as luxury goods (cooperation with a European premium brand), logistics, agriculture, food, medicine.
Any product on the VeChain platform is assigned a unique identifier, which is stored simultaneously in the blockchain and placed on the product with a special chip or QR code.
The consumer can interact with the chip at any time and learn more about the origin and quality of the product. Thus, VeChain developers managed to create a new business model based on "trust service", which helps to establish favorable partnerships between the parties to transactions.
Each of us would dream of buying bitcoins in 2013. Everyone knows perfectly well that every dollar invested in them then would bring a fortune today.
Alas, the train has left. The fever has passed. The excitement subsided.
Everyone has heard these phrases. You yourself probably think that it is already too late to buy cryptocurrency. After the astronomical growth of Bitcoin in December 2017, investing in it is pretty stupid now, isn't it? The bubble has burst, and bears have taken over the market, putting pressure on prices.
But what if we told you that now is the best time to invest in cryptocurrencies?
For those who missed their chance last year, this is a real opportunity to enter the market. The media hype subsided, we survived a three-month decline (protracted by the standards of the cryptocurrency market), prices returned to November levels (before the December hype).
But perhaps even more important is how market sentiment is changing. Over the past few weeks, there has been a clear shift in attitude towards digital currencies.
Look at the Bitcoin chart from January 2017. It shows a sharp spike in December/January and a subsequent series of falls. Since then, the price has twice reached a local minimum - once in February, and once - in mid-April.
BTC/USD exchange rate from January 2017 to May 2018
Now let's compare it with the classic market cycle and related psychology.
What happened to bitcoin and the cryptocurrency market over the past six months exactly repeats its outlines.
In November, we were witnesses of unprecedented optimism; in early December, there was a frank excitement on the market. As it grew, the third phase of the cycle coincided with Christmas and New Year. Cryptocurrencies were talked about in the news, in bars, at family dinners, and even during the festive Christmas dinner.
Cryptocurrency Review on ABC News
Fast forward to February. Negative moods reigned in the market, HODL memes lost their relevance. The market continued to fall, and the cryptocurrency community began to look for someone to blame. Mt. Gox has sold a significant share of bitcoins! China is angry at cryptocurrencies! Bitcoin futures are expiring! Some South Koreans became involved in insider trading!
Some of these events did deepen the fall, but no one will ever know by how much. But if you take a step back and look at what actually happened, it becomes clear: the usual market correction has happened, which has been brewing for a long time.
What goes up all the time must one day go down.
So why is now the right time to enter the market?
Balance of fear and greed
To quote the great Warren Buffett, be afraid when others are greedy and be greedy when others are afraid.
That is why now is such a good time to buy cryptocurrencies. The worst moments of the correction have passed, and fear in the market is only beginning to subside.
When people are afraid, they get rid of their positions en masse and thereby put pressure on prices. When this fear subsides, it is replaced by fear of missing out on an opportunity (FOMO), which leads to higher prices. At the most basic level, these two fears underlie all market movements.
The key to success in the crypto world is using the emotions of the crowd to time your entry into the market and understand the market cycle.
Investing contrary
"The counter investor enters the market when pessimism prevails among others and asset prices are below their intrinsic value."
Investing in spite is one of the best strategies in cryptocurrency trading as the market is still young and heavily influenced by news, emotions, irrationality, fears, FOMO and hype.
The counter investor is convinced that excess emotions lead to excessive pressure on asset prices, making them very profitable to buy. It is for this reason that traders are so fond of repeating that you should buy on drawdowns.
By investing when others are afraid, you capitalize on their fears and position yourself to grow further.
Market cycles and bubbles
All asset classes go through market cycles. Stocks, bonds, real estate go through periods of ups and downs. (Australia, for example, has recently gone through a mining and housing boom.)
The cryptocurrency market (like any other) also goes through cycles, only they go much faster. There were three cycles in 2017 alone. In each of them, Bitcoin first rose and then fell (from $800 to $2,500 in May, from $2,000 to $4,500 in August, from $3,000 to $8,000 in September).
Cryptocurrencies are in a bubble. However, in this case, a "bubble" is just a way of describing a market cycle, a series of ups and downs. The only difference is that the cryptocurrency market goes through a cycle every few months, while in the stock market it can take 10-15 years. Take a look at the history of the American internet bubble,notice the resemblance?
Looking at the charts of bitcoin and market ups/downs, it becomes clear that we are currently at the end of a cycle. Guess what happens at the end of the loop? That's right, it's all over again!
Still don't believe?
Those wishing to rely on something more specific than market sentiment can look at technical indicators and specific numbers. As mentioned earlier, we experienced a couple of local lows in February and April. We are currently in our third week of growth.
Bitcoin daily trading volumes are steadily growing. On April 10, this figure was $4.5 billion, today it has risen to about $8 billion. By comparison, on Nov. 13, BTC trading volume was 9 billion, on January 6 (at the peak of the bubble) it jumped to 22 billion. Notice the similarities?
conclusions
Cryptocurrencies are not suitable for all investors, but if you were going to enter this market, then now is the right time to do so. The journey will not be easy, but exciting.
Returning to our metaphors, the bitcoin train started moving, but did not leave the station. You can still jump into it. Throw away doubts and run while there is time!
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