Whether to invest in cryptocurrencies like Bitcoin, Litecoin and Ethereum is a hot topic these days. You can easily get confused when it comes to investing in cryptos since there are so many options which seem profitable. New cryptos pop up every time and all seem promising. The digital asset is still young and the market is volatile so there are a lot of things to think about before investing in any crypto. Here are some things to consider before investing:
Investing in Bitcoin
Today, bitcoin is more popular with crypto regulations in place to tackle scams which originally reduced investment desirability. More people are willing to invest in bitcoin since it offers a better foundation for investments in the future.
Bitcoin finished the 3rd quarter of 2019 at $8,303 which brings its total growth up by 114 percent. This simply means that investors who bought BTC at its lows in 2018 would have doubled that sum. The slowing global economy, as well as the large sums of dollars of government bonds with negative yields, have attracted a new wave of crypto investors. These investors would never have considered investing in BTC until recently.
Investing in Litecoin
Litecoin is one of the oldest cryptocurrencies with over seven years of trading. It was created to be a lighter version of Bitcoin which focuses more on payment solutions. The risk of investing in LTC is low compared to several other altcoins.
Also, Litecoin is a popular choice for most investors because of its high trading volume. Being a part of the top ten coins gave it a place in the hearts of investors. Having a high trade volume simply means that you will not have any problems finding buyers for your coins. Coins with low trading volume often have such problems.
Investing in Ethereum
Ethereum has doubled over a period of two years. In January 2018, Ethereum reached its all-time high after rising by 1000 percent. It followed bitcoin’s steps at the time. After this came the big crash and the coin has been on a falling streak. However, analysts believe that a drop in price is a buy signal for those that hope to invest.
This belief is backed by the numerous use cases of Ethereum. The smart contract platform of Ethereum can completely eliminate paperwork use in many industries. The blockchain can be used in different sectors and all these factors can ensure its continued relevance.
Bitcoin, Ethereum and Litecoin are among the top cryptos on the market. All coins have strong foundations and enjoy support from the crypto community. While Bitcoin is one of the top-performing coins on the market, Ethereum takes the place of the top blockchain for decentralized apps creation. Litecoin, on the other hand, is a faster solution when it comes to payments. All three are great investment opportunities, however, analysts advise that investors own bitcoin and other altcoins. A good formula for this investment could be 50% bitcoin and 50% altcoin or altcoins.
However, it is important to note that all cryptocurrencies are volatile. Before making any investment in cryptos, research widely on it.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.