By now the story of relatively small investments in cryptocurrency becoming too big is old but has not lost its charm. The lure of converting small investments into big money is so strong that new cryptocurrencies or the altcoins are hitting the market every day. Would you put yours into them?
Is the risk worth it?
That’s a question on the top of the mind of all those people who have money to invest but are not able to make up their mind whether they should invest it in cryptocurrencies or conventional investment destinations such as the stock market and banks. As said earlier, the pull of cryptocurrency is stronger given the potential of the high rate of return that they offer.
Like in all investments, there is some amount of risk in investments in cryptocurrencies. Rather, the risks in cryptocurrencies are more serious and many. The main reason for this is the informal nature of the cryptocurrency. That it is not approved or vetted by any central bank makes it contingent on the vicissitudes of unforeseen circumstances. The exact information about these currencies is few and far between.
There is no way their fundamentals can be assessed and credit ratings can be given for the investments to be on a surer footing. But, that has always been there and cryptocurrencies have not only withstood these criticisms but rather flourished amid that.
Which cryptocurrencies to invest in?
Now the question is if one had the money, which cryptocurrencies would he invest in so that he earns the biggest windfall. The world of cryptocurrencies has become too vast without the average man even realizing it. It is pegged at $500 billion and counting.
There are hundreds of apps and exchanges that facilitate investments and trading. And people are minting money as they do on ordinary stock exchanges. With so much money involved, even governments, banks, and big corporations are formally part of the ongoing saga.
No point shying away from it
So there is no point shying away from it. If the business of cryptocurrencies is here to stay and if it is making money for all the stakeholders, it is worthwhile to take a genuine interest in it and be part of this new currency saga. When it comes to investing in it, the example of Bitcoin is often referred to.
From the market value of less than $800, this first cryptocurrency of the world rose to $20,000 per unit in a matter of two years, before crashing and settling down at $11,000. Currently, it is trading at $7,362 per unit. Next to it is Ethernet, whose value is pegged at $138 per unit. Dash is trading at $43.95 per unit.
Take help of apps and analysis
Many apps and websites, like XTRgate ,provide up-to-date information and analysis of how different cryptocurrencies are doing at the exchanges. Going by the investment tricks used in all other investments, it is wise to invest in established cryptocurrencies that have little or no chance of going bust or performing or too poorly. But it’s not wise to put all your investments into one currency. You should spread your investments over a decent number of cryptocurrencies so that some of the investments fetch a good return even if some others may not.
Bitcoin, Ethereum, Litecoin, XRP, and Dash are some of the best performing cryptocurrencies that you should not miss out on. If you have $2,000 to invest, you should at least invest half of it in the top-performing cryptocurrencies so you can expect this part of your investment to remain stable if not shooting up in value too fast and too far, which may not be ruled out going by how some of them have performed over the last few years.
The other half of your capital can be invested in those cryptocurrencies whose fundamentals are strong but currently, they are placed at the lowest ebb. Some of these coins could be from established business houses who may have strong fundamentals and ambitious plans to take it forward. You should try to identify these currencies early on and invest in them.
As the world of cryptocurrencies is new and highly volatile, you never know which of them can suddenly start picking up. Your investments in these proverbial dark horses may reap you the biggest return. So, never lose sight of them. Cryptocurrencies in this category see the maximum volatility, so watch out for those with strong financials and professional management.