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What cryptocurrency is it profitable to buy

10/16/2018
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  • digital_coins
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Now digital coins have become popular market assets, with well-established buying technologies. It means that none of them will bring huge profits, the market price has already levelled off. But if there is a question what cryptocurrency should I invest in, then now there is an opportunity to choose an asset with good potential.

Development directions of the blockchain

Initially, the blockchain was developed in order to make it a safe means of payment. With the development of technology, it achieved new opportunities. This led to the fact that crypto coins divided into separate categories. Although such a ramification can be called conditional, experts identify the following areas:

  • payment system;
  • financial asset;
  • the mechanism for raising share capital;
  • data storage.

To understand whether I should buy cryptocurrency, it is recommended to consider the prospects of each of these areas. Perhaps a deeper study will allow answering a difficult question.

Cryptocurrency based payment system

At the beginning, the first bitcoin cryptocurrency coped well with the function of the payment system. But when the number of users has grown, the laid down algorithm has ceased to meet the requirements. The fact is that the block size does not exceed one megabyte. And the number of blocks mined per day is also artificially limited.

Therefore, there appeared a number of coins that are focused on the speed of transactions. The greatest success in this direction was achieved by the Ripple team. It even managed to create a system for commercial use. Remarkable is the fact that when xRapid announced test calculations, the price of Ripple increased by 43%. When the calculations with real money were started, their value dropped by 4%.

Cryptocurrency as a financial asset

If you do not want to think about what wallet I should use for cryptocurrency, then you can contact a traditional brokerage company. Here they will help not only to open an account with the help of a fiat money but also teach you how to invest.

And the broker will not offer bitcoin or ether for sale. It works exclusively with a financial asset - a CFD. By the set of coins that are offered for sale to the exchange, it can be concluded about the authority of this cryptocurrency among investors.

If a traditional financial broker trades in Bitcoin, then the professional community has already agreed with its value as a stock exchange instrument.

ICO through cryptocoins

One of the most unexpected ways to use cryptocoin was suggested by the Ethereum development team. They created an analogue of the operating system, which allows you to simplify the conduct of the primary token allocation. That is when a businessman decides to start a new business, he can, with their help, attract some analogue of share capital.

It turned out to be one of the most popular ways to use the blockchain. It is evidenced by the fact that the Ethereum has become the second most capitalized cryptocoin.

Therefore, before choosing a strategy for placing funds in digital assets, it is necessary to examine the real utility of the coin. An interesting poll on this topic was conducted by Reddit. On the question of whether I should invest in Reddit cryptocurrency, it answers that it depends on the qualification. Much of the investment is made for the last money, which is absolutely not recommended.

More competent investors buy coins for a maximum of 10% of the capital. It makes it easy to cope with temporal fluctuations.

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