Cryptocurrencies have become the new fad among money minters and investors alike. Many of these people are using cryptocurrencies to invest their money in without any hindrances and hesitations. Cryptocurrencies, especially Bitcoin, have become quite popular in the recent years amongst finance enthusiasts. Plus, they has proved to be really lucrative for people who sailed this boat early on. But, still many investors, including the layperson, are confused whether to invest in cryptocurrency or not.
Why invest in cryptocurrency now?
If you are still mulling whether you should invest in cryptocurrency or when you should invest in it, then here you will get all the answers to your dilemma. Let me tell you that it is really worth it to invest in cryptocurrency and the right time is now. Better late than never!
This is because cryptocurrency is on a surge for a few years and it is better to invest in it right now if you want to earn great returns. And, even though the cryptocurrency market is unregulated and carries heavy risks with marked manipulation, it still has a lot of potential irrespective of its volatility. This means that the rollercoaster ride of cryptocurrencies can actually make you rich.
The question that might now come to the forefront is where to buy cryptocurrency. The easiest and probably the safest method is to buy it from an exchange that has a long-standing reputation and a high user satisfaction rate. Bitcoin exchange CEX.IO holds a special place among the oldest and the most reputable exchanges. It is a UK-based cryptocurrency exchange that has been successfully running around the world since 2013. As an officially registered business, CEX.IO complies with the laws and regulations imposed on any business providing financial services, which implies the security and integrity of the users’ funds. CEX.IO is constantly enriching its cryptocurrency market and put special attention to customer demand before adding new coins to their trading platform.
Top cryptocurrencies to consider
Now, that you know that right now is the correct time to invest in cryptocurrencies, you would be wondering which one should you invest in. Let’s put together a list of different cryptocurrencies in which you can put your money according to their ranking in the digital fiscal world.
Bitcoin
To start with the different cryptocurrencies you can invest in right now, Bitcoin is your best wager. Of course, you would have heard of it. Still, let me tell you that Bitcoin is the most popular and common cryptocurrency making the rounds right now. However, before I tell you about the vast hike in Bitcoin, let me tell you what it is and how it came about.
Bitcoin was created in 2008 by Satoshi Nakamoto and was launched in the year 2009. Bitcoin is a type of digital currency, which is created as well as held electronically without any controlling power. Unlike euros and dollars, Bitcoin is not printed; rather it is created by people and majorly businesses that run computers worldwide and make use of software that deciphers mathematical problems.
This digital money is decentralized and is based on a structure of peer-to-peer, which can be joined by anyone. Currently, Bitcoins are mined at the rate of 20 Bitcoins per 10 minutes with a limit of 21 million. It is anticipated that this cap will be touched in the year 2140.
The rise of Bitcoin has been really drastic. Bitcoin actually caught the interest of media and investors in April 2013, when it boosted at a record of $266 for every Bitcoin after a tenfold rush in the previous 2 months. The digital currency reached its zenith market value at more than $2 billion.
To explain it to you in simpler terms, let me provide two examples, make-believe and real. In the year 2010, the value of Bitcoin was nearly 1.5 US cents. This means if you had bought $25 of Bitcoin back then, you would have essentially made $7.6 million by now. Moreover, 3 years ago, one Idaho teenager put in $1000 in Bitcoin and today he owns more than a million dollars. Yes! Bitcoin has been so high.
Ethereum
Ethereum is a great technology to invest in and is proving to be a lucrative one as well. Founded in 2015, this digital currency has since grown by more than 1,100%. It is an open-source network that is superior to other blockchain networks.
It is only wise to invest in Ethereum since it is supported by Fortune 500 firms, it includes more applications as compared to Bitcoin, and it is being integrated by financial institutions. Ethereum is great for everyone who wants to invest their money in something similar to gold. It has a really good long-term potential for other purposes as well. However, if you are a trader who wants to make quick income on the unstable oscillations of Ether (digital currency of the network), then it can be a bit hard for you to get a clear idea on its short-term moves.
Emerging altcoins to consider
Besides Bitcoin and Ethereum, there are other cryptocurrencies as well that you can ponder while investing. A lot of firms have launched their own substitutes to Bitcoin after recognizing its rapid growth and success. Some of these altcoins include:
Ripple: Launched in 2012 by Chris Larsen, the technology entrepreneur who founded OpenCoin, Ripple is another rival of Bitcoin. Just like Bitcoin, Ripple works as both a payment system and a currency with a component of XRP.
Bitcoin Cash: Bitcoin Cash is the most recent entry into the digital currency bandwagon. It was introduced in 2017 on August 1. This is an offshoot of Bitcoin since it is created by splitting or forking Bitcoins. However, it has an increased block code and size.
Litecoin: One of the leading rivals of Bitcoin and Ethereum is Litecoin, which is particularly designed to process smaller transactions swiftly. Created on October 2011 by Charles Lee, it is termed as "a coin that is silver to Bitcoin’s gold.” Litecoin has a cap at 84 million.
Dash: Dash, formally called Darkcoin, has a quite similar software like Bitcoin, but addresses a few issues faced by Bitcoin, like slow transaction processing time. This digital currency, which was established in January 2014, provides enhanced privacy, instant transactions, and double verification with the name of ‘Masternodes.’
Iota: This digital currency was launched in 2015. It is famous for being based on a blockless blockchain technology, which is the very first in the world. Plus, IOTA does not have any miners, unlike Ethereum and Bitcoin and works on Tangle.
OmiseGo: OmiseGo or OMG is a token based on ERC20 Ethereum network provided by the Omise company and was launched in July 2017. This digital currency is sold during an ICO (Initial Coin Offering) to investors. It has a growing potential of 50 times.
Cryptocurrency Price as of October 21, 2017
Bitcoin: $6107.11
Ethereum: $299.71
Ripple: $0.206840
Bitcoin Cash: $324.36
Litecoin : $58.65
Dash: $289.15
Iota: $0.369136
OmiseGo: $7.31
Practical considerations in investing in cryptocurrency
Before you invest in any cryptocurrency, you must be diligent as much as when you invest in the stock market. However, you need to take some extra considerations too, while knowing:
â- There is not a clear regulation and law concerning cryptocurrencies as investments;
â- Most of the cryptocurrencies do not have any ‘intrinsic value’ as compared to stocks, wherein the value is connected to the revenues of the companies;
â- Cryptocurrencies are very volatile, which means you can lose a part or all of your invested money as soon as you gain it.
With those tips in mind, some may dismiss the idea of investing in cryptocurrency, while others will decide to proceed further.
Conclusion
It is great if you decide to invest in cryptocurrencies and it would be far better if you do it right now in order to reap maximum benefits. Your first choice should be Bitcoin and then Ethereum if you plan to invest in cryptocurrencies. You can also consider some other rising altcoins.
However, it is necessary that you treat your investment in digital currency with speculation just like you do in your regular investments. This means you should know that you are at a risk of losing a major portion of your investment. However, with growing usage and limited supply, cryptocurrency is on a boost and will only grow in the future years.
