If you are new to crypto, then it may feel daunting to choose the right cryptocurrency. With so many coins available, which one is right for you? And, how do you know you’re doing it the “right” way? Here’s how to choose the best cryptocurrency to fit your needs.
Which cryptocurrency is the best?
There is no “best” cryptocurrency. Like any other investment, you’re taking a risk on it to see if it makes money for you. And even if it doesn’t, it’s not that it was “bad”. But, if you want to reduce your risks and potentially make a profit, it is important to choose the best cryptocurrency for you and your goals.
With that said, there are some cryptos that investors are most interested in now. Currently, a few are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Solana (SOL)
- Dogecoin (DOGE)
Again, be sure to do your own research into what will work best for you.
With so many options, what is the best cryptocurrency to buy??
As of right now, besides the options listed above, you could also buy Ripple (XRP) or Litecoin (LTC) — two growing cryptocurrencies.
What is the best cryptocurrency to invest in 2022?
Now that we’re in a new year, what is the best cryptocurrency to invest in for 2022?
Again, there is no right or wrong answer here.
For one, it all depends on your goals and how to choose the best cryptocurrency for you.
For every investor, their goals and dreams are different, so their portfolios are too. If you have any questions about making money with crypto, talk to a finance professional.
What is the next big crypto?
Experts have weighed in on what’s the “next big thing” in crypto. But, of course, none of them can estimate with 100% certainty on what will actually hit it big.
However, top contenders are…
- Binance Coin, and
How do I choose a good cryptocurrency?
There are a few things to keep in mind in order to choose a good cryptocurrency.
For one, look at their white paper.
- This outlines the purpose of the coin and how it works.
From there, look at the pricing history.
- Ask yourself “Is it volatile?”,
- “Is it resilient when the market takes a downturn?”, and
- “Is it currently at an all time high?”.
Then, of course, look at the overall reputation of the coin.
- What are people saying about it?
- Does it come across as a good investment?
- Does it look like a pyramid scheme?
By asking yourself simple questions like this, you’ll be able to make a more informed decision.
There are many great cryptocurrency exchanges that can make it easy for your to both buy and trade crypto. These include Coinbase and Gemini. And, you can also check out brokers like Robinhood and SoFi.
Keep in mind that that brokers may have higher fees than exchanges, and it may be harder to select what you want. So if you want more flexibility, choose a crypto exchange.
How do beginners buy cryptocurrency?
You’ve been hearing about crypto for a while now, and now you’re deciding that you want in. How do beginners buy cryptocurrency?
You can use any of the above mentioned places to buy cryptocurrency. If you choose to buy on a difference exchange or through another broker, be sure to research them thoroughly. And never spend money before fully vetting the company you’re spending money with!
How To Choose The Best Cryptocurrency
Now that you know the basics in cryptocurrency investing, let’s talk about how to choose the best cryptocurrency.
Assess The Risk Level
As there are now thousands of different cryptocurrencies available, it may seem difficult to know where to start. It is important that you have some vital information about all the options available.
Bitcoin, for example, is often the most stable, and is often seen as a safe buy due to it being the oldest cryptocurrency on the market.
Other currencies, known as alt coins, such as Ethereum, Doge Coin, Floki Coin and Shiba Inu are newer arrivals that have been established as stable cryptos.
When investing, it is highly advisable that you spread the level of risk by diversifying your cryptocurrency portfolio. This will involve the investment of various perceived stabled cryptocurrencies. Stable cryptocurrencies, in essence, replicate the movement of flat currencies, keeping the price fluctuations to a minimum.
As every individual will differ in terms of what is important to them and how much they have to spend, it is important that independent research is undertaken. This can be done by looking at the historical data of your chosen cryptocurrencies in which you have decided to invest.
You might be drawn to the price as a key factor when investing. But try not to pay this too much attention. Instead you should look for stability, endeavoring into the full history of your chosen cryptocurrency.
As the cryptocurrency you are looking at may well still be within its growth stage, the record may indicate continuous growth. This isn’t an accurate representation of its full cycle. Currencies to avoid are those that have huge peaks historically, as well as those who have suffered significant drops in their market cap.
Dying demand is an absolute indication that the investment is not worth it. Within your research, you should find out as much about the cryptocurrency as possible,. This includes everything about the leadership, who owns and runs the corporation, as well as track record of the CEO. If those in charge cannot be trusted, this is a clear sign to cut and run.
Look into Unknown Crypto Exchanges
To get ahead of the game, try and find crypto exchanges that have failed to yet reach the mainstream. These often allow you to find better investments, due to the platforms being lesser known. Again, research should be thoroughly undertaken here to ensure that you are making a safe investment, allowing you to succeed in the world of cryptocurrency.
You’re Ready To Choose The Best Cryptocurrency For You
Choosing and investing in cryptocurrency doesn’t have to be a hard, daunting, or money losing task. You just need the right information, research, and decent timing. As you can see, this will lower your risk significantly, and can even help you make the returns you’ve been hearing about!
Are you prepared to choose the best cryptocurrency? If not, what’s holding you back?
AUTHOR Kimberly Studdard
Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn't spending time with her daughter and husband, or reading her growing pile of horror books, you'll find her working on her HR degree and working towards FIRE.