Invest in cryptocurrency in 2018

Cryptocurrency has been one of the main investment trends in 2017 and everything points to continue to be so in 2018. After the year of the explosion of bitcoin as an investment this exercise there are other alternatives to enter the world of virtual currencies at a price more affordable and with potential.

What are cryptocurrencies

The most widespread definition of virtual currency is that it is a digital currency, not physical, that uses cryptography to secure and manage transactions, as well as to create new currencies.

This explanation of what is a cryptocurrency includes the two most important characteristics of these electronic coins. The first is that it does not have a physical support. That is, there are no bills or coins as there are euros, dollars or pounds. The cryptocurrencies are virtual and although they can be stored in physical devices (purses such as hard drives or USB drives) they have no physical representation.

The second is that cryptography is used to create new units, which for practical purposes implies that it does not depend on any government or country. With virtual currencies there is no central government or agency in charge of creating new currencies and putting more money in the market. As an example, Bitcoin uses blockchain technology to regulate the creation of new units. In addition, in this case, the number of available currencies is limited, something that is not always repeated with other cryptocurrencies.

Types of cryptocurrencies

Dash, Ethereum, Ripple, Litecoin ... there are many virtual coins beyond the famous bitcoin. In fact, today the number of virtual currencies far exceeds 1,300 worldwide.

What differentiates cryptocurrency types is the technology they use on the one hand and their philosophy on the other. To understand it better, most virtual currencies use blockchain technology but with certain changes that can make them faster to process transactions, for example. In addition, there are also currencies that use totally different formulas. To this the philosophical part is added as to put a finite number to the https://www.finect.com/blogs/aprendiendo-sobre-inversiones/articulos/invertir-bitcoins-debes coins that will be in circulation (bitcoin) or not to do it , as well as the degree of transparency in transactions.

List of cryptocurrencies

How many cryptocurrencies are there? More than 1,300 and going up. Each week, a new virtual currency is created in a process called ICO, which we will summarize later.

The most popular virtual currencies right now are the following:

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List of cryptocurrency

Bitcoin Litecoin Nxt
Ethereum Bitcoincash Tron
Ripple Dash Iota
Montero Zcash Cardano
Stellar Nem Neo

The number of existing virtual currencies is much wider and continues to grow every day. To consult the legal cryptocurrencies you can use these two links with more than 800 cybernetic currencies and their corresponding quote: World Coin Index and CoinMarketCap.

In both places you can consult a list of the most important virtual currencies and also see the price of these virtual currencies.

New cryptocurrencies

The world of virtual currencies never stops and almost every day new proposals arise, known as altcoins or alternative coins in reference to the fact that these are alternatives to bitcoins. In the previous point we have reviewed some of the most important and now we will see how to invest in new virtual currencies.

As there are exits to the stock market of companies, cryptocurrency also have their long-term. These are the so-called ICO or Initial Coin Offering and the stock market investor will remind the IPO or Initial Public Offering that collect the exits to the market and are called OPV in Spanish.

ICOs are used to finance business projects and culminate with the birth of new virtual currencies. With the ICO, the company puts new virtual currencies into circulation in exchange for money. One example is the new project of the Tutellus training platform, which has launched its ICO integrating blockchain technology into its business model.

In what cryptocurrency to invest

Winning coins with cryptocurrencies is possible, but you have to know which one to bet on and how to bet. In this sense there are different ways of investing in cryptocurrency from trading with cryptocurrencies to mining virtual currencies. Choosing the asset and the form of exploitation is key, especially when they are so volatile and have so much risk.

Profitable cryptocurrencies

What have been the most profitable criptodivisas of 2017? Which currencies have achieved better yields? The following list includes the ones that have accumulated the most benefit since their appearance as ICO (it does not include other currencies launched in another way).

Nxt Accumulate a return of + 2496805% since its launch.

Iota. Accumulate a return of + 837592% since its launch.

Spectercoin. Accumulate a return of + 543129% since its launch.

Neo Accumulate a return of + 517510% since its launch.

Ethereum Accumulate a return of + 429500% since its launch.

Stratis. Accumulate a return of + 296076% since its launch.

Ark. Accumulate a return of + 79538% since its launch.

Lisk Accumulate a return of + 37392% since its launch.

Storj. Accumulate a return of + 21285% since its launch.

Qtum Accumulate a return of + 19069% since its launch.

You can access the full list in this Icostats link. Within the platform it is also possible to list the ICOs for the most profitable currencies in the last month and even buy it with the profitability of Bitcoin.

If you are looking for the most profitable virtual currencies in 2017, this is the list

Ripple. The big star of 2017 with a profitability of 36000%. No cryptographic currency gained more.

Nem. Only surpassed by Ripple in terms of growth and very little. He added 29842% last year.

Stellar. Another one that lived a great 2017 with a performance of 14441% in 2017.

Dash It closed the year with a 9265% return.

Ethereum The best known and clearest alternative to Bitcoin gained a not inconsiderable 9162% in 2017.

Cryptocurrencies with future

As the stock market saying goes, past returns do not ensure future returns. The evolution of a virtual currency is a good indication of its potential, but that does not mean that it is the best cryptocurrency to invest in 2018. The price of virtual currencies in January, with falls above 50% since the beginning of the year is a good example. Is this an indication that you have to flee the sector in a hurry? Not much less, only that the price was too inflated.

What cryptocurrencies will ring the bell in 2018? This is a list of digital currencies with a better future considering their potential and evolution so far.

Bitcoin

Whether we want it or not, bitcoin is still the main cryptocurrency, which sets the behavior pattern for the other virtual currencies.

There will be coins that are revalued more, especially the ICO, but if there is one with a future, this is the bitcoin. In this article we explain how to buy bitcoin. To know everything about this currency visit our article: Invest in Bitcoin.

Ethereum

Ehtereum is the great alternative to Bitcoin and the second virtual currency in terms of capitalization. Far from the leader yet and discarded the possibility that it exceeds it as digital money, its strength lies in the development of applications and how it uses intelligent contracts in development environments.

Ethereum and Ether were already one of the most profitable cryptocurrencies of 2017.

An alternative to direct investment in Ethereum is to buy cryptocurrencies based on their technology such as Aragon or Stox.

Ripple

We are facing the fourth virtual currency in terms of capitalization after Bitcoin, Ethereum and Bitcoin Cash. It is a currency that has grown less than the rest in the last quarter of last year and that has great potential.

Ripple is no novice, since it has 5 years of life. It is technology-based and allows up to 1,000 transactions per second, much faster than Bitcoin. In addition, its technology can be used as a protocol

IOTA

IOTA is one of the most ambitious projects in the field of cryptocurrency. Its objective is to incorporate virtual currencies to the internet of things and it does not include the blockchain technology used by most currencies of this type. IOTA is based on Tangle technology, which in theory is much more scalable, faster and lighter than blockchain.

NEO

Known as China's Ethereum, its future will be linked to what the Asian giant decides about the future of cryptocurrency. The Chinese government has already announced greater control over the sector and banned the ICO at the time.

Litecoin

Litecoin is one of the veterans in the sector. Created in 2011, it sought to reduce transaction time with respect to bitcoin.

A Bitcoin image, Litecoin limit is 84 million coins of which there are already about 55 million in circulation.

Reddcoin

Reddcoin or RDD is one of the low cost cryptocurrencies. It defines itself as a social currency and its use is limited to social networks.

Reddcoin has its own platform to give tips on social networks that can be used on Twitter and Reddit.

Monero

Monero is the criptodivisa anómina. With it the details of the coin transaction can not be traced. That is its main strength against other options and what gives it value.

Buy cryptocurrencies

There are mainly two ways of investing in cryptocurrencies: buying cryptocurrencies or mining them. The first option is the most usual and also the most accessible.

Buying a virtual currency is not that different from investing in commodities, for example. What changes is the platform through which it is made. And it is to invest in cryptocurrency in 2018 there are specialized websites and their own cryptocurrency purses, which is where the cyber coins are kept.

Purses for cryptocurrencies

There are several types of purses for virtual currency depending on its operation and security. Ordered according to security would be the following:

Cold wallets. It is hardware or a physical device where coins are stored. It is the most secure against theft, but also the least practical when making transactions.
Portfolio Applications. It is a software that simulates a portfolio and which is accessed after downloading the program from your computer.
Online portfolios. They are the most widespread. They are accessed online through the Internet, without having to download anything. Their main advantage is that they are very practical when making transactions.
Exchange houses. They are the banks of cryptocurrencies and they work in a very similar way to a broker. It is, without a doubt, the simplest way to buy and sell cryptocurrency.
What concrete purse to choose? It will depend first of the virtual currency you want to buy, since not all accept all currencies. From there, this is a list with the most popular:

List of cryptocurrency

Coinbase (online purse) CEX.io (online purse) Mycelium (online purse)

Xapo (cold wallet with mobile application and exchange house) Exodus (wallet application) Bitcoin Core (online wallet)

Jaxx (wallet and wallet application online) Blockchain (wallet online) Electrum (wallet online and wallet)

Trezor (cold wallet) Bread Wallet (wallet application) Bitgo (wallet online)

in
Bitstamp (exchange house) Kraken (exchange house) Bitfinex (exchange house)

Minar cryptocurrencies
The second way to invest in cryptocurrency is to mine cryptocurrencies. In other words, join the group of people that seeks to solve the mathematical algorithms that will give you a frangmento of the digital currency that you are mining.

The most repeated question at this point is how to mine cryptocurrencies, what it takes to become a virtual miner. To start you will need a machine, a computer. In theory, any computer serves but in reality, if you want your activity to be profitable you must have a specialized machine.

The more value you have the currency you want to mine, the more power the machine will need, the more electricity it will consume and the more noise it will produce. The reason is that there are many more mining and if your machine is not powerful or you do not have many machines, it will not be profitable because you will spend more energy to get it than you will get to mine.

In recent times an alternative has arisen to mine cryptocurrencies without a computer. It's about cloud mining. In this case what you do is to hire the power of mining that you want in a mining farm. The greater the power, the greater the profits. So, instead of having equipment in your house dedicated to mining cryptocurrencies, you pay because they are elsewhere. Obviously, the performance will be lower because you will pay the Cloud Mining company because you rent the machines or, rather, they give you mining power.