Over the last few months, cryptocurrency has seen a real boom regarding public awareness, investment interest and… controversies. Nowadays, there are over 900 different cryptocurrencies that can be invested in, and each one of them has various features.
Bitcoin, as the original cryptocurrency, always gets the most attention and thanks to its continuously growing price – it is also the most popular investment choice. Bitcoin has reached a stratospheric price mark of over $8,000. Hence, investing in the mother of all cryptocurrencies usually means a hefty amount of fiat currency that has to be put out. Or, buying just a small friction of one Bitcoin. Unless you have thousands on your bank account ready to be spent on just one Bitcoin, you will only afford a small part of Bitcoin, called Satoshi. But would you want to do that, if you can afford a cheaper currency that can potentially bring more profits in the future?
So which other currencies are worth investing – your time and money? Mainly, if you are at the beginning of your cryptocurrency journey, the choice might be overwhelming.
Choosing a cryptocurrency investment
There a lot of various factors you should be looking at while trying to pick the one. However, it’s crucial to remember, that the price should be the least one of these factors to consider.
You should always first and foremost look at the ‘revolutionary’ aspect of the coin. Regardless of how much the coin is worth, it should bring a particular innovation the market. If a currency is repeating what others have done before, the chances it will ever survive the $1 mark are quite low. If you look at IOTA, for example, it will entirely change the machine-to-machine system for the Internet of Things – it introduces a new solution to technology and identifies a significant gap in the market.
Another vital factor to look at is the engagement with the community around the coin. In particular, during many ICO scams, the founders and developers of the currency are what sets the coin apart. If you are planning to invest in a specific coin, you have to become an active member of the community to understand its future and be the first one to find out about the upcoming improvements.
If you are intending on investing in ICO than you should ‘stalk’ the developers behind the coin. In most cases, a good project also has an experienced and successful team behind it. Someone who has a history of working with cryptocurrency and blockchain technology, will not be a newbie on the market and would have probably worked on other crypto-related projects in the past. Make sure to check it before investing.
Last, but not least, you should think about the ways of buying your chosen cryptocurrency and means of storing it. Legitimate and promising cryptocurrencies will have an intention of getting into some of the most prominent cryptocurrency exchanges and will either designed a native wallet or be very clear where the coins can be stored. If you are not a rookie, then you will know that storing cryptocurrency on an exchange is never a good idea. Hence, before you invest, do your research on when can it be safely stored.
These are just the basics of investing in cryptocurrency, but if you are looking into a lesser-known, just released coin, there are many other factors to consider in order not be become a victim of a scam. If you are up for a challenge, you should read in detail on how to choose a cryptocurrency to invest and what to watch out for.
But if you’re up for a shortcut, here’s a quick guide to the most famous cryptocurrencies on the market