Part 5: Choosing which Cryptocurrency to invest in
Which Cryptocurrency should i invest in?
In reality, there is no magical answer to this question, anyone that tries to tell you that a certain Cryptocurrency is the best is probably highly vested in it. Looking at it realistically, there are probably several big winners out there which will make great investments, Bitcoin, for example, has already shown great potential.
Since nobody knows which ones will be winners and which ones will be fails, many believe that the best investment strategy is to have a portfolio of currencies.
Having an understanding of the Crypto you are about to invest in is also a good idea to help you make a better-informed decision.
Trading.co.uk is a great tool to use to help you do this. Our Crypto feed allows you to build a portfolio surrounding the Cryptocurrencies that are of interest to you, and alerts you any time there is news or social chatter around them. This is a great way to both spot potential opportunities and mitigate risk as it often sends alerts before shifts in price take place.
If you are unsure of which Cryptocurrency to invest in, trading.co.uk can also be a useful tool for research as you can add our pre-selected list of Cryptocurrencies and keep an eye on them before making any big decisions.
Check out our Crypto-feed here!
Generally, according to cryptics.tech the biggest cryptocurrencies for 2018 so far are:
Despite its rollercoaster ride of a year, Bitcoin is solid in its strive to becoming the most expensive crypto in history.
After a giant pump based largely around the false hope that Ether could overtake BTC as the number one cryptocurrency, ETH has fallen back a lot against Bitcoin and has also lost around a quarter of its USD value from the high point. With Ethereum’s market cap edging down towards 20% of Bitcoin’s, and with panic over the impact of potential regulation of ICO’s starting to look overblown, this seems like a good buy in 2018.
Aragon ran a very successful ICO, which at the time was the 4th largest crowdfunding event in history, and the second largest in the blockchain space with only ‘The DAO’ raising more than Aragon’s $25 million. Essentially, it is a platform for creating decentralized organisations. Given its ICO success and functionality, the ANT is sure to rise in 2018.
Moving further down the market cap rankings, Stox is a prediction market platform. The concept behind it is very similar to other projects like Augur and Gnosis, although there are significant technical differences between all three implementations of the idea. But when you look at the market capitalisations, there is a stark difference. At the time of writing Augur is valued at $185 million while the circulating supply of Gnosis’ GNO tokens, representing a little over 11% of total supply, is valued at $67 million. Stox has a valuation of just $18 million for its available supply which represents 50% of the total maximum supply. Obviously, they may also fail to produce a viable product or shelve the project if it takes away from rather than adding to their current business, but it looks like a risk worth taking to me.
Blocktix is an event ticketing platform built on Ethereum. Its purpose is to combat scalping while substantially reducing costs and increasing access for small promoters. With a market cap of $7 million on nearly two-thirds of the total supply and a very large target market it looks cheap – this one certainly isn’t priced for success right now. This is another project with a clear and credible plan to reach mainstream users outside of the cryptocurrency community, meaning it will find its buyer.
Purchasing smaller cryptocurrencies is when things get a little more complex. Some cryptocurrencies are only listed on select exchanges.
So you will have to do your research to see where you can buy that cryptocurrency. For example, if you want to buy IOTA, you will need to open a trading account at Bitfinex because that is the only exchange where it is currently traded.
Once you have selected which Crypto you would like to invest in, it is time to choose an exchange to trade from, for more details check back to see our next blog on choosing an exchange and setting up your account, coming soon.