Most players on the cryptocurrency exchanges or digital currencies owners will say that investing in Bitcoin is the best decision you can make. Perhaps there is a cryptocurrency that is more advanced and offers its owner more options and more different use cases. But Bitcoin investments currently seem more reliable. In this guide, we will look at suitable cryptocurrencies to invest in this year.
Why People Investing In Cryptocurrency
The best cryptocurrency to invest in is that digital system that is promising potential growth at a price. Without these essential qualities, tokens are of interest only to developers who want to work on the blockchain platform.
If you choose crypto to invest in for the sake of making money on speculative mechanisms, then you need to look at stocks like Bitcoin. Every crypto investor should understand that virtual coins in the real world are code in a computer program. Before investing in cryptocurrency, let’s learn, which affects the crypto value.
The value of the currency
The cost of the fiat currency of each state has long been not tied to gold or any other physical support. Paper money today has a different face value, but in any case, they are more expensive than paper and ink, as well as the labour involved in printing them.
The price of paper money depends on the stability of the economy and on the ability of the state to maintain a stable standard of living for the population and relations with other countries.
- By investing in cryptocurrencies, you gain independence from government, banking, and financial systems. Technology and software provide reliability transactions using cryptography. No one on the network knows your real name, but other members of the community verify the transaction is correct. By investing in coins, you get freedom from a third party represented by a bank that controls your assets. You communicate directly with your counterparty without intermediaries.
- Some of the cryptocurrencies offer people getting access to blockchain platforms and the smart contract system for creating Internet projects and applications.
These differences show why cryptocurrency investors are more farsighted than regular stock brokers. Although in the future, fiat currency investment may also bring profit
So, what are the Best Cryptocurrencies to Invest in 2019 For Beginners
Investing in Bitcoin remains the most popular strategy among those to invest in online currencies. What cryptocurrencies beginners should invest in besides of the most famous Bitcoin?
Investors will have to choose from more than 1.5 thousand types of tokens. The market cap of other cryptocurrencies is not so successful. However, among altcoins, there are worthy alternatives to Bitcoin.
Right coins to invest in should be available on many exchanges have great quotes and good liquidity. For those who are interested in how to invest in Blockchain, we recommend choosing tokens that are key to developing applications based on smart contracts.
Best Cryptocurrency to Invest 2019-2020: Bitcoin (BTC)
Before considering BTC as a long term commercial project, study its falling and rising stages. Advisor companies pay attention to such things as a 2-fold drop in prices after the system split into Bitcoin and Bitcoin Cash. Because the owners of the assets were afraid to start selling a hot cryptocurrency, the value of the token fell another 40%.
When planning to invest in Bitcoin, be patient so as not to succumb to emotional impulses. After waiting a week or a month, you will again see a rise in prices.
Dare to buy Bitcoin? Cryptocurrency investment starts with purchasing a digital wallet to store some of the assets.
Step One: Get a Bitcoin Wallet
All investments you will keep on specialized equipment. Let’s know more about digital wallets. They work on the principle of matching two keys:
1. Open (which is essentially the address where the money is located). It can be compared to a bank account.
2. Closed (it acts as a password to access the address with money).
Developers have provided investors with some opportunities for storing and using digital assets. Hardware wallets like Ledger Nano look like a flash drive. They connect to the computer via USB. Without access to the Internet, such a wallet is completely safe from hacking.
Ledger Nano X
Wallets based on on your computer are software. One such wallet can only be installed on one computer. It is still a safe option since you control the private keys and can disconnect the computer from the Internet. Such programs need to be protected by a good antivirus.
There are several relatively reliable online services that virtual wallets offer you. Some even developed a mobile version. There is always a risk of a hacker attack, so do not trust such wallets with large amounts of money. Among these services, it is worth considering Coinbase and Blockchain.info.
Step Two: Connect a Bank Account
Cryptocurrency investment requires an electronic bank account from which you will pay for the purchase. It can be a standard bank account, as well as a credit or debit card.
- Coinbase Payments Methods
An account or card number must be connected to a digital wallet to invest in Bitcoin. Transactions paid from a bank account are processed for several days. But they allow you to buy more Bitcoins.
Step Three: Join a Bitcoin Exchange
How to invest in cryptocurrencies? Digital coins are concentrated on particular exchanges that operate on the principle of ordinary stock markets trading in stocks of companies. Some platforms only support transactions between digital assets (for example, you can buy Ethereum to Bitcoin). There are sites offering crypto investing for a few fiat currencies, such as USD.
The list of exchanges which is good to start:
- Coinbase is a reliable and straightforward service (located in the USA) for beginners.
- Coinbase Pro – an option for professionals with cheaper commissions and a sophisticated interface.
- Robinhood – an exchange that does not charge a fee for some transactions, other transactions are less expensive than on other platforms. Users can access Bitcoin investment, investing in Ethereum and other coins. But the site only works in the USA (not in all states).
- If you want to invest in cash – Peer-to-Peer has been developed for you. All transactions are made personally between sellers and buyers.
- Binance provides the most comprehensive range of best cryptocurrencies to invest in. The exchange has collected all the coins with a good market cap. If you want to receive an investment portfolio, there is no better place.
Best Cryptocurrency to Invest 2019-2020: Ethereum (ETH)
If you ask yourself what cryptocurrency to invest in, start to invest in Ethereum. The developers launched this platform in 2015 for those who want to build applications and projects on the Blockchain. The internal token is called Ether, but most investors and exchanges prefer the full name Ethereum.
Currently, the coin is quoted at approximately 120 USD. After the split 3,5 years ago on Ethereum and Ethereum Classic, the first rose well in price. We explain this with a more secure code. Enthusiasts took into account the error that led to the hack in 2016. However, some continue to use the original version of the code.
Best Cryptocurrency to Invest 2019-2020: Ripple (XRP)
The Ripple system is focused on the financial sector and instant international payments without commissions. Ripple coins do not need to be mined through powerful processors and large amounts of electricity. In this, they differ from Bitcoins and their analogs. The system is infinitely scalable and verifies transactions almost instantly. The cost of the token fluctuates around 0, 3 USD.
Best Cryptocurrency to Invest 2019-2020: Litecoin (LTC)
The Litecoin was created based on the Bitcoin prototype in 2011. The difference is the speed of block checking (it is higher) and the ability to mine coins on standard home processors. The price of the token is about 43 USD.
Best Cryptocurrency to Invest 2019-2020: Binance Coin (BNB)
BNB is a service token of the Binance exchange. The coin allows users of the platform to save on transactions and provides access to some premium features.
Best Cryptocurrency to Invest 2019-2020: Basic Attention Token (BAT)
The next cryptocurrency to invest in is BAT. It is also a service token. It runs on the Brave Browser platform. If you invest in BAT, you can pay a reward in these coins to viewers for watching your ad.
So, what are the Best Cryptocurrencies to Invest in 2019 For Advanced Investors
Which cryptocurrency to invest in if you already have experience with the popular tokens on the market? The next chart will tell you about five more exciting possibilities.
#1 Monero (XMR)
Monero cryptocurrency is developed by enthusiasts who want to make completely private transactions that cannot be tracked. It is ensured by ring signature technology. Among them, at least one must be from a real user, an algorithm generates the rest. The idea is that it is impossible to distinguish these signatures from each other. Another plus of the system for cryptocurrency investors is network scalability.
#2 NEO
NEO is the Chinese equivalent of Ethereum. The token allows you to implement blockchain projects using smart contracts on your own platform. The uniqueness of this platform is that it supports all popular programming languages. The cost of the coin varies around 7.5-8 USD.
#3 Beam
Invested in Beam, you are developing a new and more advanced blockchain protocol. Cryptocurrency has the same robust security system as XMR. Otherwise, the mining method, the reward for checking one block and the limited supply are similar to BTC.
#4 NEXO
Nexo is a cryptocurrency that develops similarly to the banking sector. The platform is a digital wallet, and participants can take loans. Nexo founders pay dividends to investors. The token is adjustable and meets the requirements of the SEC.
#5 Cardano (ADA)
ADA developed one of the cofounders of Ethereum on its prototype. At the same time, thanks to the gains team, the new project is more scalable and provides high-speed transactions. ADA tokens can be used for instant international purchases.
Investment risks
Regulation risk
Different countries are just starting to develop regulatory methods. According to the law, in some countries, crypto coins are entirely prohibited; in others, they are allowed. In the US, cryptocurrencies are equated with property and require taxes. Other regulators do not yet exist, and this is a risk for investors.
Liquidity risk
Buying a little-known digital currency, you risk not finding buyers for its sale in the future. Going to work with a well-known class of crypto, you will find a buyer. The question is whether the selling price will be profitable.
Volatility risk
There is always a lot of controversy surrounding cryptos. The course of prices can rise or fall by 1000% or more in just one week or even one night.
Third-party risk
To minimize the risk of hacking or theft, do not store your funds on exchanges. Hardware or paper wallets created to help owners of digital assets securely their stock.
Investment Strategies: Let’s Make Something Clear
Before spending your own money, do a small research on top coins. Find out news about rising or falling prices, as well as what happened to this currency earlier.
Long-term cryptocurrency investment
Investments from 6 months to several years are considered to be long-lasting. Be prepared not to panic in the event of a price collapse and not give in to the desire to get rid of all assets at once. The first motive for long-term investment should be based on your belief in the idea and concept of a particular coin. Does the system allow us to find many advantages for development, more than just speculation on value? Then this is a good option!
Reasons For Making Long-Term Investments:
- If the investor does not have the time or desire to monitor the price course on various exchanges constantly;
- If the token has been steadily growing for a long time and the price continues to do so.
Short-Term Cryptocurrency Investment
A short-term investment may even be a one-time transaction when you bought and immediately sold the currency at a better rate. To conduct such transactions successfully, you need to do a thorough market analysis and wait for the right moment to buy and sell.
How Do Short-Term Investments Work?
Any short-term strategy should be developed after careful analysis. Answer the questions:
- How much money will you lose if the rate drops sharply?
- How much will you be forced to pay commission fees?
- Can you monitor the market situation daily?
Also, before you make a decision, it is highly advisable to conduct a technical analysis of the market using special software. It is convenient if the tokens have a substantial trading volume, so you will not have problems with the sale of assets. The low market capitalization of tokens or the issuance of ICOs is also a good start for investing.
What’s with Taxes and So On?
In most countries, you either do not pay taxes on digital currencies, or you cannot use them at all. In the US, government agencies most fully regulate this process. Digital assets are equated with private property, such as precious metals or stocks. If the price of a currency rises or falls, then the tax amount also changes according to the capital gain rule.
In the tax return, currency owners must reflect the following types of transactions:
- Cash purchase for cryptocurrency;
- Shopping;
- Exchange of a kind of coin for another.
No need to pay tax on the following types of transactions:
- Purchase of tokens for cash;
- Donations to charity funds;
- Gifts;
- Transferring coins from one wallet to another, if they belong to one person.
Final words
The last Bitcoin market capitalization is up to many million dollars. Currently, it is the most popular virtual currency. Even despite the enormous jumps in price, the token is considered reliable. When the last coin is mined according to the algorithm, the price will probably rise even more.
Blockchain startups often use Ripple or Ether to implement internal solutions. Some, more functional and more advanced than Bitcoin, tokens continue to grow stably in price. It also makes them a profitable investment.
Cryptocurrencies continue to evolve, and if their use is not prohibited, many people can make a big fortune on this.