Wednesday, August 10, 2022

What Cryptocurrency To Invest In

Investment Strategies: Lets Get Something Clear

How To Pick The Best Cryptocurrency To Invest In (4 Steps)

How do investors make decisions they want to invest in real estate or stocks? Do they start making investments the moment they think about it? My guess is that the answer to that question is no!

Before you invest in anything, you need a clear understanding of what your investment goals are and how you will achieve them. You want a good idea of how long you are prepared to keep your investment open, and what amount of profit you are happy to take.

You should have the same mindset when it comes to cryptocurrency investments. Before you decide what the next cryptocurrency to invest in 2021 is for you, lets discuss the two main types of investment strategies for cryptocurrencies.

Keep in mind that whatever strategy you choose, it’s always crucial to use reliable cryptocurrency exchange platforms. A few of them include Coinbase and Binance.

Important Cryptocurrency Events For September 2021

  • 7th September. The President of El Salvador, Nayib Bukele, plans to pass his Bitcoin Law .
  • 12th September. Cardano plans to launch smart contracts.
  • 13th September. Eurex to launch Europes first Bitcoin futures product .
  • 24th September. Deadline for 20 crypto exchanges to cease operations in South Korea .
  • Late September. Thai SEC to propose new rules for digital assets.
  • Some point in September. Ripple and SEC to request discovery deadline extension to the 12th November .

What Cryptocurrency Should You Invest In

First, Blockgeeks does not give financial advice, and second, never asks anyone else what to do with your money, least of all Google! Always educate yourself, understand the risks, the all possible outcomes, and dont make any investments if you are not 100% comfortable with your decision.

That said, Bitcoin remains the undisputed king of cryptocurrencies its been around the longest and has the largest market capitalization of over 674 billion USD . is the total value of all tokens available, or the price of each token multiplied by the number of tokens in circulation.

However, there are other cryptocurrencies to choose from, such as Ethereum, Cardano, Litecoin, and thousands of others. They all differ in price, availability, demand, transaction speed and fees, and the technology that supports them.

The website CoinMarketCap lists over 5,000 options in order of decreasing market capitalization. Here are the top 10 and their performance as of May 2021.

It doesnt matter what the price of a given cryptocurrency is, you can always buy a fraction of a token. For example, if 1 Bitcoin costs $35,000 USD, you can always buy 0.0001 Bitcoin for the equivalent of $350 USD.

When researching tokens to invest in, you can take a look at CoinMarketCap to get a snapshot of the top performers, but your research should not stop there. In fact, thats where the real work begins.

Recommended Reading: What Is Kyc In Crypto

Is There A Less Risky Way Of Investing In Crypto

Stablecoins could be a less risky way of investing in cryptocurrency, according to Gavin Brown, associate professor in financial technology at the University of Liverpool.

Brown points to tether, the largest stablecoin, backed by one dollar per coin. It topped the $50 billion mark on 26 April 2021 but he warns that potential investors shouldnt necessarily see tether as the next big thing.

In theory it wont ever be worth more than a dollar. But its potentially an interesting option for any varied portfolio and it could be a slice of stability if things start to suffer.

The stablecoin has not been without controversy either being fined by the New York Attorney General and banned from the state the year.

You could also buy shares the companies associated with bitcoin.

There are also some funds and investment trusts that have exposure to cryptocurrencies, which is a less risky way of investing than buying the currencies themselves.

What Can You Buy With Cryptocurrency

5 tips when investing in cryptocurrency

India is slowly opening up to the idea of accepting it as a legitimate payment method. There are some practical issues with cryptocurrency as it cannot be exactly used for daily transactions. However, there are ways to use your crypto to facilitate payments.

Unocoin, a Bitcoin trading site, is now allowing its users to buy vouchers from over 90 different brands using Bitcoins. Using these vouchers, you can buy Dominos pizza, ice cream from Baskin Robbins, beauty and health products from Himalaya, and even home appliances from Prestige.

In the US, retailers like Whole Foods, Nordstrom, Etsy, Expedia, and PayPal are now letting people pay using crypto.

Read Also: What Crypto Exchange Has The Lowest Fees

Best Cryptocurrency To Invest In 2021 For Long Term

Penny cryptocurrencies are ones that have a price of under $1. They are extremely cheap, and sometimes cost less than a literal penny. However, despite their low price, some of them have incredible growth potential, which attracts many investors.

Always do your research before investing in any digital asset and check whether its been listed on reputable crypto exchanges.

Some penny cryptocurrencies can already be considered the next big thing after all, its not the price that determines the true value of a crypto coin or token, but market capitalization and many penny cryptocurrencies have a rather high market cap.

However, most cheap cryptos have room to grow in terms of market cap and are still waiting for their chance to explode. But dont invest in just any penny cryptocurrency some of them may turn out to be nothing more than shitcoins. Always do your research before investing in any digital asset and check whether its been listed on reputable crypto exchanges.

Below we have listed some of the cheap digital currencies that we think are likely to be the next cryptocurrency to explode. Have a look!

What Are The Risks Of Investing In Cryptocurrency

Cryptocurrencies are still a relatively new form of investment, and they have grown rapidly since their introduction in 2009. The huge price swings of some of these currencies should give any investor reason for caution. Crypto is not as well regulated as other securities, and much of the trading happens overseas, further increasing the risks. You should only invest in cryptocurrency after learning about the dangers and ensuring that you have other, safer investments to offset the risks.

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Check Out Trustworthy Crypto Exchanges

The best crypto exchanges perform a significant number of checks before listing new coins for trading.

You can use these verifications as some kind of quality label to find some of the best cryptocurrencies to invest in which arent listed on this page.

eToro and Binance are some of the biggest crypto exchanges and offer dozens of the best cryptocurrencies for trading — I definitely recommend you check them out.

Choose A Platform To Buy Cryptocurrencies

Top 5 Cryptocurrency To Invest In For 2021| MASSIVE POTENTIAL

One of the disadvantages of buying cryptocurrencies is that you can’t get them in all the usual financial places. Banks don’t offer them and neither do investment brokerage firms.

For the most part, you’ll be limited to buying, holding, and selling cryptocurrencies on dedicated cryptocurrency exchanges.

Some of the largest of these exchanges include:

eToro

Gemini

Further Reading: our Gemini Review.

Unifimoney

Further Reading: our Robinhood Review

Advertiser Disclosure

Wealthfront

If you want exposure to cryptocurrency without actually having to buy crypto, could be the answer. You can gain exposure through two distinct cryptocurrency funds: Grayscale Bitcoin Trust and Grayscale Ethereum Trust .

And of course, you still have access to a large selection of ETFs, such as those for specific industries like self-driving cars and cannabis. When combined with cryptocurrency opportunities, you have access to more investments than ever before. Visit our Wealthfront review for further reading.

You can think of these platforms as brokerage firms specifically designed for cryptocurrencies. Each offers trading in the most popular cryptos, and of course, you should expect to pay a fee for both buying and selling.

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How To Invest In Cryptocurrency Step By Step Guide

As you might imagine, you can’t go to a local bank or even a brokerage firm and buy cryptocurrency. It’s still seen as something exotic in the world of financial institutions. Since it’s not well understood and is virtually unregulated, most financial institutions don’t want to deal with it. For that reason, it tends to function within its own network.

Read our tips if you want to start investing in cryptocurrencies.

Do You Have To Pay Taxes On Cryptocurrency

If you buy and sell coins, its important to pay attention to cryptocurrency tax rules. Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, youll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, youll owe taxes on the difference.

Also Check: Which Credit Card Allows You To Buy Crypto

Is Investing In Uniswap A Good Idea

DEXs are expected to overtake traditional crypto exchanges in the future. Investing in UNI now could be like being an early investor in Binance several years ago.

Uniswap Price Prediction Forecasters 2021:

Price Forecaster

Read our article on Uniswap here.

Have you consider investing in Uniswap in September?

Consider Buying A Small Portion Now

The Good, Bad and Ugly of Cryptocurrency Investing ...

Whether it’s $10 or $10,000, having skin in the game should instantly help alleviate some crypto FOMO. It’s also a chance to get used to the differences between a crypto exchange and a brokerage account. One of the reasons I bought my first cryptocurrency in May was because I wanted to learn more. Having a stake in something provides an added reason to stay up-to-date with the market and sharpen your understanding of why Bitcoin and Ethereum could be good investments.

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Pros: Why Investing In Uniswap Could Be A Good Idea

One of the best reasons to invest in a crypto is when its making improvements that will likely impact its usability and speed up adoption.

Uniswaps latest big change comes in the form of launching Optimism, which has been in development for two years. Some of the benefits include being able to pay gas fees in any token, scaling, and near-instant and cheap transactions.

For now, Optimism is in Alpha, which means they are still testing it and it will still be a while before it is rolled out to everyone else. Eventually, it will be implemented to Uniswap making now a great time to invest.

How Does It Work

Cryptocurrencies are not backed by a central authority such as a government. Instead, they run across a chain of computers. It is exchanged from peer-to-peer on the web without a middleman.

Cryptocurrencies are decentralisedwhich means no government or bank manages how theyre made, what their value is, or how they will be exchanged. All the crypto transactions are secured by cryptographymeaning that it only allows the sender and intended recipient of a message to view its contents.

Read Also: How Best To Buy Bitcoin

Should You Invest In Cryptocurrency

The cryptocurrency fervor is undoubtedly more subdued than it was in, say, 2017. The price of Bitcoin has fallen precipitously from its all-time peak of more than $17,000 . If the cryptocurrency market had to be described in just one word, it would be volatile.

So like any other investment, you should weigh the potential gains against your own risk tolerance. If you tend to be more risk-averse with your investments and youre looking to build wealth over decades, cryptocurrencies probably arent for you. No one can accurately predict what will happen to the market for cryptocurrencies. Yes, thats technically true for all investments. But other markets say, the stock market grow much more consistently, with significantly less volatility. Indeed, it may be misleading to even call it investing to buy Bitcoin. It would be more accurate to refer to it as speculation.

Still, if youre willing to take a risk and you believe the current Bitcoin price is the low point before an upswing, then by all means give it a try. Bitcoin has now been around for 10 years longer than many expected it would last. A future with Bitcoin as some sort of worldwide reserve currency seems increasingly unlikely day by day. But its reasonable to expect that it will retain some value for the foreseeable future. The same cant be said for some of the more obscure altcoins, though.

Things To Consider Before Investing In Bitcoin

TOP 5 Cryptocurrency To Invest In For 2021 | Long Term Buys!

Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky.

Here are some things to think about before you invest:

  • We dont recommend investing all your life savings on cryptocurrency
  • Its best to see it a bit like gambling so only invest small amount of your disposable income
  • Never invest more than you can afford to lose
  • If you havent got much money left at the end of each month, its best to steer clear of crypto and focus on saving your money instead

Weigh up the pros and cons first:

Pro: Cryptocurrencies are global, meaning they have the same value in every country and no exchange rates.

Con: Cryptocurrencies are extremely volatileand very risky investment. People have also reported having to wait to get their cash out because of technical snarl-ups.

Recommended Reading: How To Buy Bitcoin In Brazil

How Do You Buy And Store Bitcoin

After how do you invest in Bitcoin, the next most common question were asked is How do you store Bitcoin? There are several options available to investors when it comes to storing their digital currency, with some options carrying less risk at the expense of convenience. Below, weve listed the most popular ways of holding and storing your cryptocurrency.

  • Cold Storage Wallet: Physical hardware that can be purchased online for holding your cryptocurrency keys, similar to a personal bank vault.
  • On-Exchange: Holding your crypto on a public exchanged account, such as Binance or Kraken, is a convenient although risky way to store your coins since it involves significant counterparty risk
  • Third-Party Custodian: If you invest in a cryptocurrency IRA, you can trust an insured third-party custodian to store your assets on your behalf.

For newcomers to the crypto scene, your best bet is to store your coins through a third-party IRA custodian. This way, you wont have to worry about misplacing your wallet keys which, if lost, would render all of your assets permanently irretrievable.

How To Invest In Bitcoin And Make Money

Like any investment, making money depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.

If you sell for a lower price than you bought it for, you will lose money.

For example:

  • If you had invested in bitcoin at the start of 2020 and sold on 31 December 2020, you would have made a 300% profit
  • If you had invested in bitcoin at the start of 2018 and sold on 31 December 2018, you would have made a 73% loss

Bitcoin is extremely volatile so the trick is not to panic and crystallise your losses by selling when its value inevitably falls. This is the same with all investments.

Read Also: Is It The Right Time To Buy Bitcoin

Is Bitcoin A Good Investment For The Future

There could be more price appreciation in 2021.

Fiona Cincotta, senior markets analyst at City Index, thinks the price could rise to about $80,000 this year, but notes that forecasts are notoriously tricky because bitcoin is so hard to value.

Several crypto-market experts have tipped bitcoin to hit $100,000 or more by the end of 2021. Though its recent falls have dampened its prospects.

Most ordinary investors would not think of speculating on pure currencies such as the US dollar or Japanese yen. This is because currency trading is seen as a highly technical, full-time activity.

Instead, people interested in the sector could gain access to it through a less direct route. For example, by buying shares in companies that:

  • Develop blockchain technology
  • Run crypto exchanges

Whatever your view, there is no denying that these boom and bust cycles have been a feature of bitcoins whole existence, so some big ups and downs seem highly likely.

Dont Wait: Take Control Of Your Retirement With A Crypto Ira

Best Cryptocurrency to Invest in 2020

Right now, the aggregate value of all cryptocurrencies in existence totals nearly $2 trillion, and this number trends upward virtually every year. Savvy investors wont pass on the opportunity to get in on an investment opportunity of a generationmaybe, even, of a lifetime.

For many investors, the risk-return proposition of Bitcoin and many other cryptocurrencies is clear: the incredible upside potential far outweighs the risk of losses. Responsible investors dedicate a small portion of their portfolio to cryptocurrencies within a tax-advantaged IRA. This way, they can build tax-deferred or tax-free wealth with crypto while avoiding the possibility of devastating losses.

Now that you know how to invest in cryptocurrency, theres no reason why you cant get involved. Start investing today! When youre ready to take the next step, check out our list of the top Bitcoin IRA companies that can help you invest in cryptocurrency safely and securely.

This commentary is provided for general informational purposes only and does not constitute financial, investment, or tax advice nor does it constitute an offer or solicitation to buy or sell any services referred to.

freenever

Also Check: How Much Tax On Crypto Gains

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