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How to Invest in Cryptocurrency

08/06/2018
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  • investing
  • bitcoin
  • litecoin
  • etherium
  • ripple
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Are you thinking about investing in crypto and feel confused because the purchase process seems to be complicated to you? Hold on for a moment and read our guide to understand the main aspects of dealing with cryptocurrency. Once you are done with this all-in-our directory, you will already know what is the best cryptocurrency to invest in and how to buy digital money. Let’s build a winning trading strategy together!

Best Cryptocurrency to Invest 2018

A couple of years ago, there were only a few cryptocurrency types on the market - people were choosing between the three options, with Bitcoin being the most popular one. The situation has changed dramatically - it now is extremely difficult to figure out what crypto is the best among all this variety of newest cryptocurrency types. And it is not about getting confused but knowing what kind of crypto investment will be profitable and which one will lead to a loss of funds. That’s why “best cryptocurrency to invest 2018” is one of the most popular search requests submitted to search engines.

The digital currency market has changed considerably over the last 2-3 years. Apart from tech-savvy fans, big investors and businessmen are searching for a way to predict best cryptocurrency to invest in 2018 and arrange a deal at the right time. Along with this fact, the number of crypto types has increased as well. On the one hand, such a variety of new cryptocurrency 2018 helps to diversify the investment portfolio and open even more opportunities for traders. On the other hand, the large crypto map may seriously confuse the user in choosing the right digital currency.

This is especially a big issue for novice traders who have just decided to invest in cryptographic products and do not know how to invest in blockchain technology. Everybody knows such crypto veterans as Bitcoin, Litecoin, Ripple, and Ethereum. However, there are also some relatively new players on the crypto market: such as Dash, NEO, Zcash, and many more. Read further to know the list of the most highly performing cryptographic assets to trade with. And knowing best cryptocurrency to invest in now is a difficult-to-complete mission. So what is best cryptocurrency to invest? What factors should you take into consideration when selecting the best new cryptocurrency to invest in?

Best Cryptocurrency to Invest 2018: Bitcoin (BTC)

Investing in Bitcoin is expected to bring money in 2018. Is it worth investing in Bitcoin and why? The thing that makes Bitcoin a good option for investors is its huge popularity. Since its release, this cryptic currency has always been handy for traders. But it is a recent run-up in crypto rates what has raised interest to Bitcoin among major investors. Sixteen million of digital assets out of the projected twenty-one million is already in circulation. That’s why Bitcoin is one of the best cryptocurrency to invest in - it is a well-functioning crypto unit supported by major broker exchange platforms.

At present, the market capitalization of Bitcoin amounts to $115 billion, with the cost of a single unit being approximately $6,807. Bitcoin not only became the first cryptocurrency; it has also set large-scale records in terms of its rate raise/ fall. Therefore, investing bitcoin is a profitable business.

If you do not know how to start investing in Bitcoin, we have prepared several options for you:

  • Broker exchange platforms - Bitcoin investing can be done on a cryptocurrency exchange, which practically serves as a platform to buy Bitcoin, exchange, or sell digital assets;
  • Bitcoin ATM’s - you can also purchase Bitcoin with cash. For this, you will need to use a special Bitcoin ATM, which accepts cash, exchanges fiat to crypto, and sends it to your online wallet;
  • Peer-to-peer exchange - it is also possible to buy Bitcoin directly from a merchant. A good thing about this method is that it doesn’t involve third parties and have no transfer fee. You can also buy crypto with cash, if you wish. Is investing in Bitcoin worth it? It is definitely so if it comes to p2p cryptocurrency exchange.

If you are still wondering is bitcoin worth investing in, the answer is definitely yes. But there is only one condition for your successful trading. We recommend you to be careful when selecting a cryptocurrency exchange. Pay attention to accepted payment methods, bitcoin price investing, security level, and transaction fees. Having properly chosen a platform, you will know an answer to the question “is investing in bitcoin a good idea.”

Best Cryptocurrency to Invest 2018: Ethereum (ETH)

Is Ethereum worth investing in? Yes, it definitely is. Ethereum is the second most important cryptocurrency in terms of capitalization and popularity. Investing in Ethereum can be a great financial asset for many years to come. Taking into account the current rate of the crypto and its financial scale, Ethereum is the next cryptocurrency to invest in 2018, just after Bitcoin.

A great thing about Ethereum is that its transactions are carried out faster and transfer fees are lower compared to Bitcoin. What is more, no superpowered equipment is necessary to mine Ethereum; you can use a home computer for that purpose. It is the newest cryptocurrency to mine.

Best Cryptocurrency to Invest 2018: Ripple (XRP)

Ripple is one of top 5 cryptocurrencies to invest in 2018. Its rate is now actively growing, which is difficult to explain by objective reasons. Being the best cheap cryptocurrency to invest 2018, Ripple is expected to go up in price. Apart from having an active growing rate, Ripple has many other great features. All transactions in the system can be reverted, which distinguishes Ripple from other cryptocurrencies. On top of that, trading operations are made on a contractual basis, so there is no need to involve third parties in the process.

Best Cryptocurrency to Invest 2018: Litecoin (LTC)

Litecoin is widely known in the crypto community as the best new cryptocurrency to invest. LTC implies significantly shorter confirmation times and higher transaction efficiency when compared to Bitcoin. Thanks to its army of supporters for crypto growing volumes and liquidity, Litecoin has already demonstrated that it is a real alternative to Bitcoin. It can be worthily called the best cheap cryptocurrency to invest.

Cryptocurrency Investment Strategies

We have already discussed what are the best cryptocurrencies to invest in 2018, so it’s time to talk about cryptocurrency investment strategies. The best way to invest in cryptocurrency is to do everything step-by-step.

  1. Select a wallet to store your digital money - there are 3 different types of crypto wallets - online, software, and hardware - each providing some benefits in terms of funds security, transaction speed, and ease of use;
  2. Decide on a crypto type - before registering on any exchange platform, decide what cryptocurrency you want to buy, in what amount, and what you are going to do with it;
  3. Select an exchange platform - pay close attention to supported payment options, platform security, transaction fees, and cryptocurrencies it works with;
  4. Check the rate - before purchasing any crypto unit, it is extremely important to check the rate since it can determine the success of your trade. Then a real financial game starts. Your mission is to keep a close eye on the crypto market and predict any falls or raises of the currency rate

Beginning investors need to be aware that it's not enough just to buy a few crypto units and wait for the rate to raise. Everything is a bit more complicated with how to invest in Blockchain stocks. The most relevant, safe, and effective strategies for earning money on cryptocurrency market today are the following ones:

  • Cryptocurrency purchase with the subsequent trading;
  • Long-term investment (Buy & Hold principle);
  • Short-term investment;
  • Transfer of funds for crypto trust management on cryptocurrency market.

Some traders prefer short-term investment to generate a quick income, similar to HYIPs. It is especially true about those investors who do not have the knowledge of technical market analysis and are not familiar with the structure and principles of trading. There are also some who do not like taking risks and give preference to long-term and deliberate trading. If you know how to invest in Blockchain, decide on a trading strategy you are going to employ.

Long-term Cryptocurrency Investment

Long-term investments will bring a high profit in case the strategic development and marketing plan is well thought out. When making a long-term investment, you can generate income not only on the growth of the crypto price but also on attracting partners, taking stock in, etc.

A well thought-out and balanced marketing plan can serve as a motivation for investors, thereby expanding the scope of users of a cryptocurrency. In addition, the long-term development plan allows for a smooth and confident increase in the price of the crypto. So if you think that any new cryptocurrency is developing fast and has a great potential, consider purchasing it.

Reasons For Making Long-Term Investments

New digital technologies create great prospects for the modern financial world and traders. A lot of specialists work on their solution, making new cryptocurrencies even more sophisticated. So if you understand all the processes happening on a crypto market, you will most likely succeed with long-term investments.

When is it a time to make a long-term investment:

  • The crypto just started to raise;
  • A newly released cryptocurrency is unique, has great features, and just started getting more and more customers;
  • You see that professional traders are starting buying a particular crypto.

An alternative way of a long-term investment in cryptocurrency is purchasing several crypto units with their further mining. It is a very time-consuming process that requires special equipment, but it does work!

Short-Term Cryptocurrency Investment

Short-term cryptocurrency investment implies a buy-and-flip strategy. Just like any type of business, it involves some risks. So you should be ready to experience loses; they may happen. The thing here is that you should predict jumps/ falls of currency rates and act accordingly - buy cheap and sell expensive. This strategy works well for dynamic crypto types, such as Bitcoin, Litecoin, Ripple, etc. So take it into account when purchasing any crypto units for trading.

How Do Short-Term Investments Work?

For a short-term investment to work well, you need to do constant market research and closely follow all crypto trends that are near to happen. Only in this way, you can predict financial jumps that can generate profits for you. Doing ordinary selling-buying operations will never make you rich if you are not researching potential trends and occurrences.

Our Verdict

Dealing with cryptocurrency is fun, but it can also make you rich if you treat it not as a hobby but as a job you love. Understanding processes and how the crypto market works is also a good thing. So if you decide to buy cryptocurrency, it is important to know where to start investing:

  • Decide what cryptocurrency to work with - it will determine the amount of income and the payback period;
  • Allocate a sufficient amount for initial investment with the further support of investment activities;
  • Create a wallet for the selected cryptocurrency to conduct sales transactions.
  • Register on the exchange;
  • At a certain time, buy digital money at a minimum rate;
  • Transfer the purchased currency to an offline purse.

Trading success depends on the investor's foresight and his ability not to make decisions.

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