Helping you make informed decisions on investing, money, equities and personal finance. Seasoned investors or newbie traders, our financial education corner has something for all.
Catch the latest updates from Australia’s premier stock exchange & market indices.
Choosing the Right Cryptocurrency to Invest in
Content Writer…
Recently, cryptocurrencies have proven as viable option for financial investments, and is understandably becoming more and more popular. Surveys by PEW Research Center show that a staggering sixteen percent of Americans admit to having invested in cryptocurrency, with that number being even higher all around the world.
It isn’t just the adult population that has embraced cryptocurrency. Statistics, according to 2022 Investopedia Financial Literacy Study, show that Gen Z is far more likely to be curious about, and invest in cryptocurrency. It isn’t just Gen Z that are becoming curious about crypto. A quarter of millennial millionaires have been shown to have a huge portion of their wealth invested in cryptocurrency, with many of them also owning non-fungible tokens.
While bitcoin is undisputedly the most prominent, and high-priced cryptocurrency, there are so many more options to choose from. The number of cryptocurrencies on the current crypto market number in the thousands, with some estimating the number has reached ten thousand different cryptocurrencies. With so many different choices to pick from, how is a new investor to know where to begin? In this article we will offer a few tips for how to pick an option best suited to your needs.
Crypto Trading Site Support
One of the things that will help you pick the best option, is to look into the many crypto trading sites and the different cryptocurrencies those sites support. Most trading sites, like https://tradingplatforms.com/au/ for example, support a wide range of cryptocurrencies, with Bitcoin, Ethereum, Ripple, Litecoin, etc. being the most prominent.
Not only that, number of other benefits are also offered by these sites to the new investors.. For one, they are easy to access and use. All you need to create a profile on one of these sites is a username, password, and email. Many of the sites offer beginners an investment tutorial, and to make investment even easier, they incorporate artificial intelligence technology, the purpose of which is to read the fluctuation rates of bitcoin prices and predict future values.
Investigate the Price History
Many new investors make the mistake of seeing a trending cryptocurrency, and quickly invest in it while it is highly priced. This is the easiest decision and most common mistake to make.. It stems from stuff like fear of missing out, or a lack of patience. The problem with this approach is that it forgets to take into account the high rates of fluctuations that permeate the crypto market. A cryptocurrency that suddenly gained prominence one day, might plummet in value the other.
Rather than jumping in, let a cool head prevail, wait a few days, and most importantly investigate the price history of the cryptocurrency. Let’s take Bitcoin as an example. If we look at Bitcoin’s price history, we can see times when it has plummeted in value, however, for the most part it has stayed highly profitable. Same is true for many of the other famous cryptocurrencies, like Ethereum.
Investigate the Best Options
As stated above, there are currently thousands of cryptocurrencies on the market. This can confuse people and overwhelm a lot of young investors. But as stated above, it is best to retain a cool head, and do some research on the best, historically proven cryptocurrencies on the current market. Let us take a look at some of the best, most trusted cryptocurrency right now.
The most popular cryptocurrency has consistently been Bitcoin. However, since there are other cryptocurrencies that are being introduced into the market, it is imperative to investigate the best option for your investment. This will influence the direction your investments will take, in a huge manner.
Look at Your Options
The success of Bitcoin led to the creation and distribution of quite a few other cryptocurrencies on the market today. So, take a look at all of them and consider your options. A few notable options are the following:
Tether is a stablecoin. This means that its value is tied to a given FIAT currency. In the case of Tether, it is the U.S. Dollar. Which means that, as long as the dollar remains stable, Tether’s value will remain at US$1. Ethereum might be the second most popular blockchain today, and the Ether coin is among the most valuable. In fact, its price is exceeded only by Bitcoin. Dogecoin started out as a joke. A parody of the crypto craze. However, it soon grew into its own thing and became a hugely popular asset. Today, it ranks among the top ten most popular and recognizable cryptocurrencies in the world.
Also make sure you’ve explored the numerous, successful Bitcoin hard forks that have occurred over the years. Among them, the ones to keep an eye out on are Bitcoin Gold and Bitcoin Cash. They are definitely the two most popular hard forks on the market today.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
Copyright © 2022 Kalkine Media Pty Ltd. All Rights Reserved.
ACN:629 651 672 ABN:84 629 651 672
