As a blogger and an internet entrepreneur, I always get bombarded with this question lately, Hey Debabs! What is a Cryptocurrency and which of the currency should I invest in? These questions I always had from those people does not surprise me at all because for the past three months the whole social media and the internet are talking about Cryptocurrency (Bitcoin being popular).The continued mentioning of Bitcoin on most of the social media platform has triggered the whole world’s attention to the term Cryptocurrency. Many people have never heard of the term “Cryptocurrency” Before now. Those who heard of it don’t know what it is and how to start with this new form of currency.
At first, I decided to stay low and not write about this topic on my blog, but due to the higher demand from my cherished readers and friends, I then made it an honor to talk about this subject in other to benefit my readers.
Before I dive into the main subject of this article, I will like to brief you what a Cryptocurrency is and why you should invest in it. Also, I will tell you some of the secrets to use in investing in this new form of digital cash.
What Is A Cryptocurrency?
A Cryptocurrency to the lay man’s words is a form of digital currency (money) just like the fiat money. You can use it to buy, sell, pay and receive bills. What differentiates this currency from the normal currency is the fact that you cannot hold it like you do with the fiat money. Cryptocurrency uses cryptography to secure and verify transactions. It has all the features of fiat money with the additional features of which the fiat money does not have. Read more about the feature of cryptocurrency here.
Why Invest In Cryptocurrency?
Now that you have some understanding of what a Cryptocurrency is, then I guess you will be asking yourself then why Cryptocurrency?
Yeah, this new form of digital currency comes with a lot of benefits and features which makes it better and more relevant to every business/individual.
Some of the benefits include:
Cryptocurrencies make it easier to transfer funds between peer to peer in a transaction: What this means is that, you don’t need any third-party in your transactional dealings. Unlike the normal currencies where you have to walk to the bank for a transaction, with cryptocurrency you don’t have to move an inch. You can conduct your transaction within the comfort of your home with less or no difficulty.
Minimal processing fees: The best part of crypto is its minimal transaction fees. The amount of charges to that you have to pay within a single transaction with the digital money is very less as compared to the fiat money charges. Most of the cryptocurrencies even have fixed charges (dash). This means no matter the amount of dollars involved in the transaction you pay a fixed fee which is so minimal.
Security: Security is always considered as a crucial factor in the success of any transaction. The more a transaction is secured, the more the trust. Security has always been an issue for most of the business organizations when conducting business with the normal currency. With cryptocurrency, you rest assured that your money is secured and safe especially when you use a well-secured wallet for your fund.
Now back to our main topic, the Top 5 cryptocurrencies you should invest in 2018. Why did I choose to write on this topic?
As I said I decided to stay low not that I don’t have much interest in this form of digital currency but because I wanted to study most of the currency and have more insight about these currencies before I can have a say.
My first encounter with Cryptocurrency was Bitcoin way back 2015, by then this currency was still gaining some grounds. I was introduced to Bitcoin by one of the digital cash crusader based in the USA and from then I began to study this coin.
I wrote some few articles about Bitcoin way back 2016 by then some of this cryptocurrencies were not in existence and the ones which were in existence were nothing to talk about until recently.
Lately, people start to have more interest in crypto and this has contributed greatly to the increase in the price of these currencies.
If you are still wondering as to which of these cryptocurrency to invest in then below are the 5 best cryptocurrencies you can invest into:
The first on the list is Bitcoin: As I made mention, Bitcoin is a form of currency that gained more popularity in recent times with the price being raised up to 19k per 1bitcoin.
Bitcoin is now traded at $16,749.60 and its market capitalization stands at $281,129,256,055. The success of Bitcoin is attributed to its miners; they are responsible for the creation of more Bitcoin.
According to some analyst, even though Bitcoin is currently the leading player in the crypto market, there will soon be another currency that will outweigh Bitcoin in three to five years to come. But for now is still the king.
This cryptocurrency has proven to be a major player in the Cryptocurrency market. Ripple was created in 2013 and is currently worth $120,353,225,645 on the coin market capitalization with the price of $3.11. Lately, we have seen more improvement in the price of this currency and its market cap has also risen to be in the second position after bitcoin. Analysts have predicted a strong future for this network, because of the fact that transactions with ripple take place at higher speeds with very little in terms of fees. Get more info about ripple here.
The next cryptocurrency which seems to be the next successor of Bitcoin is Ethereum. This coin has the next highest price on the cryptomarket after bitcoin and Ripple. Even though the price off Ethereum is not all that close to that of Bitcoin, you can confidently say this coin is worth investing. 1 Ethereum traded at $1,008.18 with a market cap of $97,584,722,096. Further reading can be done here.
Litecoin is a currency created to serve as an alternative to Bitcoin way back 2011. This currency was created to address some few flaws of Bitcoin and has since then come to stay. Even though this currency cannot be a competitor to Bitcoin, it has been a great altcoin after its predecessor (Bitcoin). As at now, 1 Litecoin is traded for $251.84 with a market cap of $13,757,775,516.
Dash crypto is another entrance to the market which has a lot of features similar to the mother coin (Bitcoin). Dash digital currency was created in 2014 and has recently gained more recognition in the crypto market.
Dash serves as a unique peer-to-peer network with a strong governing policy. Unlike the biggest leader (Bitcoin) in the market, transactions involving dash is fast and more secure with a lesser transaction fee of only $0.4.
The transaction involving dash takes only 4 seconds to complete and as at 30 December 2017, dash has a market cap of $9,278,083,084 with a price of $1,189.44.
Dash according to the developers is a revolutionary digital currency which so far has seen more improvement. Read more about dash from their homepage.
My Tips on Investing into Cryptocurrencies
- Never invest more than you are able to lose. Thus investing in cryptocurrency is very risky and you should keep in mind at all times. You can either gain or lose when you invest in crypto.
- Make sure to buy your desire currency only from exchanges that have proven their reputation.
- Always buy your desired digital cash through Dollar cost averaging: This means you don’t buy all of your coins in one trade but instead buy a fixed amount every month, week or even day throughout the year.
Friends, so far these are the 5 best cryptocurrencies you can invest in 2018 but my final words are that, don’t limit yourself to these 5. Try and do more research on this topic because every day comes with a change in the price of each currency. So make sure to always visit the coinmarketcap.com for more info about the price and market value of each currency.
My second advice is that there are about 1200+ cryptocurrencies in the system and most of these currencies are scam and opportunist. Make sure to always stick to the first 20 currencies on the coinmarketcap.com in other not be a victim of opportunist and other fraudsters. Thanks for reading and hope you find it useful. Please feel free to get in touch in case you have any question regarding this article. Don’t forget to also leave a comment.