The Best Cryptocurrency to Invest In
Cryptocurrencies have slowly gained traction over the past few years and are emerging as a viable alternative investment option for people all over the world. The Bull Run of the crypto market in 2017 – when Bitcoin grew exponentially to a price of about $20,000 per coin before the Crypto Winter of 2018 set in – helped further put cryptos in the spotlight, and more people are slowly coming into the fold and are keen to learn about what they are, what they do, and how to invest in them.
A major issue standing in the way of not just crypto adoption but investment gains as well is a lack of insight into how crypto investment works and how one should go about it. We address this issue here by taking a deep dive into recent investment trends, where to find the information you need to become a successful investor, and historical factors that have traditionally affected crypto trade and investment.
Best Cryptocurrency to Invest in 2019
The price of Bitcoin currently seems to be in slow recovery mode. However, the wider market of alt coins (alternative currencies) has also picked up, and several alt coins have been recording massive gains since the start of the year. One of the best performing cryptocurrencies since the beginning of the year is Binance Coin (BNB).
Cryptocurrency exchange Binance has successfully rolled out a slew of new products and has successfully reached numerous development milestones over the past few years that have established it as the de-facto leader of the exchange pack. Some of these developments include the launch of the Binance Chain and the Binance DEX. The performances of the exchange have seen its BNB coin record astronomical gains. It is up by more than 200 percent since the start of the year, after rising from $6.02 to its current trade price of over $22. It reached an all-time high of $24.29 a few days ago, making it the first altcoin in the top ten to reach that milestone since the Bull Run of 2017.
Litecoin (LTC), the cryptocurrency that is regarded as Bitcoin’s younger sibling, is having an incredible 2019 as well. It is up by roughly 150 percent since the start of 2019 after rising from $32 to a current price of $75. Litecoin’s development team has been working to make the cryptocurrency more fungible by adding Confidential Transactions to the token. Also, the halving of LTC mining rewards will be taking place in a few months, and that is another reason for the surge in the LTC price, making it one of the top cryptocurrencies to invest in.
Other cryptocurrencies that have been performing well since the beginning of 2019 include Bitcoin, Ethereum (ETH), and EOS. Other tokens that are projected to do well based on upcoming project milestones and market partnerships include Tron, Ripple (XRP), Stellar (XLM), and IOTA, all of which look set to record gains before the end of the year.
Binance Coin (BNB) looks like the best crypto to buy now due to the momentum around Binance and its progress in the crypto space. Other top cryptos to invest in now include ETH, BTC, MIOTA, EOS, XRP, TRX, XLM, LTC, and BAT.
There are predictions that the market is recovering and that a Bull Run should be expected towards the end of this year and next year. Bitcoin mining rewards will also be halving next year, and that has been one of the driving forces behind recent prices increases. For this reason, cryptocurrency market experts and analysts believe the bear market is over and that cryptocurrencies are in recovery mode back to their growth trajectories of 2017.
Best Cryptocurrency to Invest in 2018
It is safe to say that 2018 was not a fun year for the cryptocurrency market as the bear cycle kept the prices of most cryptocurrencies and tokens well below their all-time highs. A vast majority of cryptocurrencies lost roughly 80 percent of their value or more in 2018.
However, a few digital currencies performed excellently in 2018. Cardano (ADA) was the leading performer in the crypto space last year. Cardano is a platform that offers scalability and security to DApp developers and it reached a peak price of $0.37 last year following its decline to $0.15 at the start of the year. However, ADA’s price has since declined slightly over the past few months.
IOTA’s impressive market performance didn’t start this year. The cryptocurrency designed for the Internet of Things (IoT) was one of the best performing cryptos of 2018. Known by its crypto ticker MIOTA, IOTA dropped below the $1 mark at the start of the bear cycle last year but went up over 100 percent in May 2018 to trade at over $2 due to high interest in the IoT space. It was one of the top cryptos to invest in last year.
Ripple (XRP) was also one of the best cryptos last year as it constantly challenged Ethereum to occupy the spot as the second most valuable cryptocurrency by market cap. The payment token has been gaining considerable adoption from financial institutions all over the world due to the many remittance and cross-border payment products rolled out by Ripple. After dropping below the $3 mark in January last year, XRP continued to decline but embarked on a temporary Bull Run in May of 2018. It rose from its April low of $0.40 to reach a high of $0.90, rising by over 100 percent within a few weeks. While XRP took another hit last year, it remains one of the best cryptocurrencies to invest in this year due to the enormous potential of Ripple’s remittance products.
Dash (DASH) (a portmanteau of ‘digital’ and ‘cash’) became the darling (and savior) of Venezuelans last year following the sanctions imposed by the US and the rapidly increasing inflation that then took place, affecting their local fiat currency. It experienced an all-time high of $1,500 before losing most of its value. However, Dash continues to be used by Venezuelans and other traders across the world due to its instant and private payment solutions that made it one of the top performing cryptocurrencies last year.
A few other cryptocurrencies that performed well last year despite the bear market included Binance Coin, Stellar Lumen, Tron, and Nano.
Best Cryptocurrency to Invest in 2017
Many would describe 2017 as the best year to date for the cryptocurrency market, with the Bull Run experienced that year the most widely referenced go-to point in the short yet volatile history of digital currencies. While 2017 would be remembered for the Bull Run that saw Bitcoin reached its all-time high price of about $20,000, BTC was not the best performing cryptocurrency that year.
XRP led the way in terms of growth as it saw its price surge by roughly 36,000 percent. XRP was followed by NEM, which experienced a 29,000 percent price rise within the space of one year.
Bitcoin itself performed excellently, recording gains of over 1,318 percent between January and December 2017. However, it was only the 14th best performer of 2017, as other cryptocurrencies such as Ethereum, Stellar, BNB, Litecoin, Dash, Golem, OmiseGo, and Ardor all performed better.
While Bitcoin’s price plays an important role in determining the direction of the general market, most altcoins tend to perform better than Bitcoin during Bull Runs. Although some of the top performing cryptocurrencies were established cryptos, others were ICO tokens that were developed on smart contract platforms like Ethereum.
Where to Research Cryptocurrency Investments
Despite avid interest in cryptocurrencies, many people find that identifying sources of reliable data is an issue. Here are a few resources that you should look into and familiarize yourself with to better understand prices, daily percentage changes, and trends over time.
Coinmarketcap is the most comprehensive cryptocurrency data platform currently available. It provides information on over 2,000 cryptocurrencies that are currently active, as well as a few that have been discontinued.
One of the most useful features of Coinmarketcap is its price and charting tools that provide crypto data points (price, trading volumes, and market cap) over multiple years. If you are interested in knowing the price history of any particular coin or token Coinmarketcap will have what you need. The site displays daily prices and price movements for all listed tokens, providing cryptocurrency enthusiasts with important investment data points such as all-time highs, initial price after being listed on crypto exchanges, and other useful metrics. The platform also provides price-related information such as the total market cap, the total coin supply, and the circulating supply of listed coins, as well as 24-hour trading volumes and the percentage change in price for any given coin or token over the past 24 hours.
Apart from Coinmarketcap, there are other websites where users can carry out research on cryptocurrency prices and trends. These include CoinGecko, which is a cryptocurrency ranking site that uses market cap, 24-hour trading volume, and price to rank cryptocurrencies, similar to Coinmarketcap. BitInfoCharts is another unique platform that provides access to essential facts and figures for a host of leading cryptocurrencies. Other similar sites include CoinCodex, OnChainFX, CoinCheckup, Coinlib, and more.
History of Cryptocurrency Investment & Bitcoin
Investment in cryptocurrencies and Bitcoin have been around for a little under a decade. Satoshi Nakamoto created Bitcoin back in 20008 following the global financial meltdown. Bitcoin was designed to take control of financial instruments from governments and banks and hand it over to the people.
When Bitcoin was launched in 2009 and gained popularity, cryptocurrency exchanges such as the now-defunct Mt. Gox, Kraken, and others were opened. The emergence of cryptocurrency exchanges and the development of a few other cryptocurrencies kick-started the cryptocurrency investment space.
Crypto investments are generally split into two major categories. Traders take advantage of slight changes in prices to make a profit. This is known as day trading. Long-term investors are those who purchase Bitcoin (or alt coins) and hold them for the long run (a practice referred to as ‘hodling’) with the aim of selling them at a higher price in the future. Over the past few years, Bitcoin prices experienced both Bull Runs and bear cycles. Traders and investors have taken advantage of both these two situations to buy and sell Bitcoin and other cryptocurrencies to their advantage.
The Path Forward
The Bitcoin investment space continues to grow, and the emergence of the futures contract market in December 2017 brought more people into the industry. The CME Group, which is a diverse derivatives marketplace that offers a wide range of futures and options products for risk management, and the CBOE (Chicago Board Options Exchange), which is one of the world’s largest exchange holding companies, launched the Bitcoin contracts futures in December 2017, and they provide investment vehicles that allow people to speculate the directional movement of cryptocurrency. Thus, with futures contracts, traders have the opportunity to make money both during price increases and declines. By speculating on the price decline of Bitcoin, traders can make money when the price target is reached.
The cryptocurrency market has also started witnessing the entry of institutional investors over the past few months. While institutional investors have previously complained about the volatile nature of Bitcoin and the lack of regulation in the market, some of them are entering the market despite those challenges.
It is expected that the institutional investments in the cryptocurrency space would increase exponentially over the coming years. The United States Securities and Exchange Commission (SEC) has been delaying the approval of Bitcoin exchange-traded funds (ETF). However, once a Bitcoin ETF is approved, more investors could troop into the cryptocurrency market.
According to most market experts and cryptocurrency analysts, the Bitcoin market has the potential to exponentially grow over the next few years, and this is a great time to buy Bitcoin as an investor. All it takes is knowing what you are getting into, learning how to perform basic analysis, and picking and choosing the right project at the right time based on data that is publicly available to all. With time, you too can learn to be a successful trader, so read up on the projects and tokens that interest you and take things from there.