Recently, cryptocurrency has seen a real boom regarding public awareness, investment interest, and… controversies. Bitcoin, the original cryptocurrency, has always been in the spotlight. Thanks to the growing price of BTC, it’s also known as the most popular investment choice. Investing in the mother of all cryptocurrencies usually means a hefty amount of fiat currency has to be spent. It may also mean that you can only buy a small fraction of one Bitcoin. If you do enough research, there are other cryptocurrencies to put your energy into.
So which other currencies are worth investing your time and money in? If you are at the beginning of your cryptocurrency journey, the choice might be overwhelming. There are thousands of cryptocurrencies you can invest in and each one has unique features. We’re here to help break down what you should look for when searching for your new crypto BFF.
Choosing a cryptocurrency to invest in can be overwhelming because there are so many to choose from. There’s a lot of factors you should look at when choosing a cryptocurrency to invest in.
You should always look at the ‘revolutionary’ aspect of the coin. Regardless of how much the coin is worth, it should bring a particular innovation to the market. If a currency is repeating what others have done before, the chances it will ever survive the $1 mark are quite low.
Another vital factor to look at is the crypto’s engagement with the community. In particular, the founders and developers of a currency are what sets it 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. You also want to be one of the first to find out about the upcoming improvements. For example, “Meme coins” have become popular because of the community surrounding it and the revolutionary impact they’ve had in the cryptocurrency world. “Meme coins” have inspired a generation to change the way traditional financial institutions operate and communicate.
Another factor to consider when buying into a new currency is looking at the organization backing the cryptocurrency. If you intend on investing in an ICO, you should research 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 make newbie mistakes on the market.
Buying and storing
Last, but certainly not least, you should think about how to buy and store your cryptocurrency. Legitimate and promising cryptocurrencies will typically have the intention of getting into prominent cryptocurrency exchanges. They will try to design a native wallet or clearly state where the coins can be stored. Keep in mind that storing cryptocurrency on an exchange is never a good idea.
We’ve only gone over the basics of investing in cryptocurrency, but if you are looking into a lesser-known, or hot new coin (such as a trendy “Meme coin”), there are many factors to consider to avoid being a victim of a scam. If you’re up for a challenge, you should read in detail on how to choose a cryptocurrency to invest in and what to watch out for.
So, where do you start? Try checking out the Paxful marketplace today where you can buy and sell Bitcoin, Ethereum, and Tether (some of our favorite cryptocurrencies!).