Experts and banking specialists are still unable to assess the wisdom of investing in cryptocurrency. However, those enthusiasts who believe in the future growth of bitcoin are making a profit right now. The use of the currency is gaining momentum because of the large number of useful ways to implement it. The number of users who have linked their business with Bitcoin is growing.
Cryptocurrency trade experts predict the value of cryptocurrencies will grow. However, there may be periods of “stagnation” when positions will not change, or a time of non-critical decline. It is also worth bearing in mind that long-term investments from a year bring great benefit to the investor and almost never go bust, while short-term investments will be quite unprofitable in the event of a temporary drop in prices.
What Cryptocurrencies are Worth Investing in?
Studying current quotations of cryptocurrencies is the main task of an investor. One should also take into account the reliability of “digital gold”. At the moment, it is easy to get into a difficult situation with fake currencies, which are held by companies and are more like a pyramid scheme.
One of the most liquid cryptocurrencies. Investors have received more than 120% annual return on investment. Especially it concerns long-term investments from 5 years. Of course, having invested in 2012, you can get a fantastic benefit today. It is easy to invest in Bitcoin through a special wallet, which gives access to one of the bitcoin trading platforms.
Ethereum has shown stable development since its creation. Among the bonuses for users is the ability to independently generate blockchain applications for financial transactions. The advantage of cryptocurrency is the absence of intermediary companies, which reduces the risk of theft of the invested amount of money. Ethereum users also have the ability to create casinos and betting shops. In the future, experts predict that the cryptocurrency will grow by 10 times.
Monero’s main advantage over other cryptocurrencies, is the anonymity of users and transactions. There are also disadvantages: the currency is very popular on the black market, as transfers of funds cannot be traced by law enforcement agencies and others.
Counterparty is a financial platform that uses blockchain technology and has cryptocurrency XCP. Transactions are conducted through special bitcoin addresses.
Ripple is an ideal cryptocurrency for venture capital transactions because the payment fees are reduced. Also XRP acts as a payment bridge, which is used when a direct exchange of assets is not available – for example, in transactions involving two rarely traded assets.
How Much Should You Invest?
One of the most common questions that new cryptocurrency traders ask is what amount of money they should invest. Answer to this question is fairly simple: invest only as much money as you can afford to lose. There is no guarantee that investment will be profitable.
In order to make your portfolio profitable it is recommended to monitor cryptocurrencies that you want to invest in. Amount invested is up to the trader but it is recommended to invest the amount that can be lost.