Investing in cryptocurrencies, but which one(s)?
Ok, now that you know what blockchain and criptocurrencies are, you're probably aksing yourself which one is worth to invest in. That is a very, very difficult question. And no, I won't give you the answer. I'm in no way qualified to do that. You should ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING YOUR MONEY, and never forget these rules. I'll just list my favorites and my opinion about them.
The first one is, of course, BITCOIN
Although there are more than 1000 cryptocurrencies out there, everything starts and ends with BITCOIN. It is the first cryptocurrency, it is the most popular and most adopted one, and, most likely, it is the reason you are here.
This time I won't go into details what BITCOIN is, here's a link for that. I’m gonna write about it from an investor/trader point of view.
Since the first thing you want to look at before buying any cryptocurrency is its adoption, BITCOIN is definitely the safest bet on the market. It’s been here for quite a long time now, it’s widely adopted and (at the time I’m writing it) it dominates the market with 57.6% of all trades. So, to be clear, of all trades 57.6% are BITCOIN trades and 42.4% of trades are all other coins (more than a 1000 of them) combined.
Two examples of a mass adoption:
VENEZUELA
ZIMBABWE
That makes BITCOIN the safest investment in crypto, but as we all know, low risk = low profits. Although I believe that BITCOIN should be the largest part of any decent portfolio, I’m not buying it at the moment. BITCOIN is now at its all times high (over $6100,00 for 1 BTC) and that is due to an approaching BITCOIN GOLD fork. And we have a SegWit2x fork just around the corner.
Just briefly, a fork is a division of 1 coin in 2 (in this case BITCOIN in BITCOIN and BITCOIN GOLD, and next month BITCOIN in BITCOIN AND B2X). So, anyone holding BITCOIN will receive the same amount of this new coin, basically for free (as it already happened with BITCOIN CASH). That is why people are buying more and more BITCOIN before these forks. The more BITCOIN they have, the more of these new coins they’ll get.
And what are they doing to buy BITCOIN? They are selling their positions of altcoins. So, by the natural law of supply and demand, BITCOIN price is going up and almost all other coins are on a sale right now. And that’s where you want to look, especially if you are trading.
Most likely, after these forks, we’ll see the reverse. Most people are going to go back in altcoins and we’ll see them going UP, and naturally a good correction in BITCOIN price.
I’m waiting and hoping for a 50% correction (around $4000,00 for 1 BTC) to add on my position. It may not be that large a correction, but I’m keeping my eyes on it.
To sum up, I do believe in BITCOIN. I think it has a very bright future. It will surely go up in the long run and it is of my long term investments. I won’t be selling it in the near future, I’m looking to add more when the price goes down a bit. To be honest, I’m actually hoping for a major crash to buy a lot more. It happened before, it’s possible that it’ll happen in the future. And every time BITCOIN got out stronger than ever, aiming for the new highs.
That’s it for now, I’m going to write about my favorite altcoins in my next post.
Until then, STAY SAFE AND HODL!
DISCLAIMER: I am not a financial advisor. All thoughts in this post are my personal opinion and not a financial advice. You should always do your own research before any investment.
First comment here on Steem. It could almost go without saying that the coins over 1 billion USD in market cap wouldn't be too bad to consider, especially the ones with a large following. I prefer the ones that can be mined vs pre-mined. But I'm only a novice in this cryptocurrency world and that's my opinion of it. I am not a financial advisor, just a speculator.
I agree with you. I'll write more about it in my next posts.
I am strong on Bitconnect partly because they have tied their assets value to Bitcoin. It's nice to see that they also perform well on days when Bitcoin is rising strongly. Their coin has risen strongly up to number 8 which means their coin has actual value. On top of that....only 27 million of their coins will be out there which scarcity can also drive their value way up. Case in point.....the coins value increase has exceeded their investing plans payouts (in dollars). I've started staking their coins on top of reinvesting. It's currently paying 8% a month out in coins....so value increase plus coins is a big win. And it goes without saying....only invest what you can afford to lose. Lastly...most people buy more useless garbage from Amazon than they invest a month (crypto, IRA, stocks, real estate, etc.).....I'm done ranting....for now.
That last part, absolutely spot on!