People work hard to earn money and get a good living for themselves. Most hard-working individuals want to ensure that their money is being put to good use or is growing – and not just sitting idle. This is why people choose to invest. Investment in the right assets at the right time can not only be a profitable thing to do, but it can also make sure that you are earning extra money and can watch it grow by doing practically nothing! What could be better than that?
Why cryptocurrencies – Since the inception of cryptocurrency in 2009 with the emergence of bitcoin, it has become one of the fastest-growing assets to invest in. Millions of people all across the world, regardless of their age, have shown great interest in this ecosystem and are driven towards it. The traction that this market has gained is only leading to an influx of more money and more investors. Cryptos have a way in the market and are the leading in investments and profits at the moment. The benefits people are getting out of their investments, whether short or long-term, are massive and have changed the fortunes of many.
How to select the right crypto?
Buying cryptocurrency in India or anywhere else in the world comes with its own risks. Therefore, it becomes important to choose the right ones to invest in so that the risk factors are mitigated and you do not incur losses. Most people engage in research and gain a thorough understanding of the market before making their investments in certain cryptos.
- Market capitalization – One way to choose the right cryptocurrency for you would be to look at the statistics related to the market cap. Essentially, any cryptocurrency that is on the top of these charts and stats would be lucrative and sought-after by most investors. Bitcoin and Ethereum alone call for more than 64% of the overall market cap of all the cryptos that exist in today’s market. This is why many people choose to buy Ethereum and even Bitcoin due to their unhindered dominance in the asset class.
- Coins to be mined and supplied – Another way of choosing the cryptocurrency for you would be based on the demand it has created or will create. For example, it is well-known that there is a limited supply of bitcoin that is to be released in the market. Only 21 billion BTCs could float around for people to trade in. This means that the limited supply will only lead to an increase in demand and, therefore, the price. Other coins might have a restricted supply too or could be unlimited. Look at the past trends to see how the coin has been doing and invest accordingly.
- White paper – Reading the information on the white paper would be vital. What it provides is all the details of the coin – the purpose, the problems that it will solve, the technology it uses, etc. Most importantly, it also holds the vision that the creators and developers of the coins had during its inception. This would also help you match the purpose and see if the values align with yours. Investment in a coin that provides you with realistic white paper information could be done. You can also keep a lookout on whether or not the vision is being met in real life and that will reflect in the coin’s value as it will witness an increase. If you don’t know where to sell coins then read here how do i sell my dogecoin for cash?
- The creators – Who is behind the cryptocurrency that you are looking to invest in? This could be one of the top reasons that would break your decision on an investment. It would be important to understand the goals of the creators, their track record, and how they plan to upgrade their coins and technology in the fast-paced world. The team has the power to ensure that the cryptocurrency lives long enough. Essentially, if the team does not look after its assets, it may fizzle out.
- Technology – A large part of any cryptocurrency’s success can be attributed to the technology and the power to stand out from a crowd. If the technology is great enough to give the network and crypto an edge over its competitors, it can be a good place to invest in as it would be expected to gain traction and grow. Many cryptocurrencies offer a lot more than a simple trade or exchange of coins. Ethereum offers smart contracts, virtual machine technology, etc that are appealing enough and are making the coin lucrative.
Selecting the right cryptocurrency is important for long-term success in the arena. You can choose to start slow with low-risk cryptos like Tether or Dogecoin. As you find your footing, you can invest in other ones that may give you more profit and benefits.