Cryptocurrencies have performed incredibly well over the last several years. Because of this, they’ve continued to attract new investors.
When you first approach cryptocurrency, though, the field can be confusing. Where do you start? Which cryptocurrency should you buy? What shows the most promise?
Don’t worry – this post will help you find your way through the jungle.
The Crypto Market so Far
Bitcoin was the first cryptocurrency, and it was invented in 2009. It took until about 2013, however, for the general public to catch on to the idea of cryptocurrency. Since then, the market has exploded.
Today, there are more than 1,500 cryptocurrencies, the majority of which (including Ethereum, Litecoin, and Ripple) have been created in the last five years. In 2017, the market cap of cryptocurrency grew by more than 4000 percent. As of March 2017, the cryptocurrency market cap was about $21 billion. By May of 2018, however, it was over $454 billion, and that’s only projected to grow in coming years.
Top 3 Cryptocurrencies to Invest in
If you’re looking to get into the cryptocurrency market in 2018, you’re probably wondering which cryptocurrency is most worth your attention. Here are a few guidelines to invest by:
Start with Bitcoin
Bitcoin is still heralded as the best cryptocurrency out there. In addition to being the biggest cryptocurrency – it has a 40 percent share in the total cryptocurrency market cap – it’s also the oldest and most dominant on the market.
While cryptocurrency is a volatile field, it goes without saying that, as long as Bitcoin continues to increase like it did throughout 2017, investing in it in 2018 will always be a good idea.
Ethereum, second in the cryptocurrency market only to Bitcoin, is one of the most popular cryptocurrencies out there.
At the end of 2017, the price of Ethereum was just above $720, with a market cap of about $70 billion. By the start of 2018, Ethereum had reached a price of $1,423 with a total market cap of $138 billion.
The cryptocurrency grew a total of about 3000 percent and dominated the market as the second largest cryptocurrency behind Bitcoin.
Despite their similarities, though, Ethereum is not just a digital currency like Bitcoin. Instead, it’s a blockchain project that allows developers to build their own cryptocurrencies using the Ethereum platform.
Ripple is also called XRP, and is one of the top-performing cryptocurrencies from 2017, with a growth of about 36,000 percent. While the time to invest heavily in Ripple was early 2017, it’s still a great option.
Because the price of Ripple is so much lower than Bitcoin or Ethereum, it’s a very beginner-friendly investment. And despite its low price, it’s still the third largest cryptocurrency according to market cap. This popularity owes largely to the fact that Ripple is a digital currency and a payment system, which uses blockchain to streamline and secure international payments.
The Future of Cryptocurrency Investments
If you’re new to the cryptocurrency industry, learning which currencies to invest in can be challenging. Luckily, some cryptocurrencies (such as Ethereum and Ripple) are less risky than more volatile currencies, like Bitcoin.
Regardless of which route you intend to go, it’s always smart to have a clear understanding of your investment goals and a plan for how you want to achieve them. Whether you’re interested in a long-term investment strategy or a short-term cryptocurrency investment, a well-planned strategy will keep you moving toward your ultimate objective.