How to Invest in Cryptocurrecy?

 2018-12-06 17:51:01
How to Invest in Cryptocurrecy?

Like it or not, the burgeoning cryptocurrency has gradually been getting on its stage in the global financial market. Despite cryptocurrency has not yet been widely recognized and legalized, people around the world have reached hand to it and start investing. Landed on this text, you might be already interested in investing in cryptocurrency and want to know how to do it. In the following, we will lead you to the crypto investment journey.


how to invest in cryptocurrency


Evaluate the Cryptocurrency You are Interested in

The first step that you join the rapidly growing crypto world, is to choose the “X” cryptocurrency that you are after and interested in. But actually when you selecting a cryptocurrency, you are searching for the promising blockchain project which may have innovative value and benefit the development of the world. Before making decision, you can evaluate the cryptocurrency projects in 3 aspects:


  • Read the white paper

Before ICO (Initial coin offering), white paper is an official document issued by the blockchain project, which introduces the reader or potential community member what the project aim is and how to do with its cryptocurreny.


Generally, the founders who are experienced in blockchain, finance or other related areas will be displayed in the white paper. If there are some reputable advisers and VC (venture capital) institutions, the ICO will be much more likely to succeed.


Token distribution is also an important section in the cryptocurrency white paper. The founder and adviser team may occupied almost 50% of the total amount of tokens. If much more than 50%, you need to take a deeper thought on the project.


  • Pay sustained attention on the progress

Many blockchain projects upload their latest open source codes or files to GitHub, a development platform allowing developers to work on and review the codes together. Check the updates posted in its page in Github, you can know whether the team is working and progressing on its blockchain project.


  • Follow the latest news and events

From the official website, blockchain related media sites or social media, the latest news and events about the blockchain projects will be published. The more good and latest news and activities, the better and more successful the blockchain project will be. It somehow implies that it is getting recognized by people or potential investors.


Top 10 cryptocurrency List

For beginner, it might be a little difficult to figure out the best cryptocurrency to invest in even with the methods mentioned above. That’s why they are more likely to get started from top cryptocurrecies with high trading volume. At present, top 10 cryptocurrrencies are as below.


top 10 cryptocurrency list


Bitcoin (BTC), Ripple (XRP) and Ethereum (ETH) are the three most popular cryptocurrencies that beginners invested in.


Bitcoin is the first cryptocurrency and reached its record high to nearly $20,000 in late 2017. It is always considered as the “gold” in crypo market. Its price fluctuation also affects that of any other altcoins. Get to know more about what is bitcoin.


Ripple, jumped up to the second place over Ethereum recently, connects banks and payment providers helping global users send and receive money in a quick way. The price growth percentage between 2016-2017 is about 244%, it predicted that it may rise to $5 in 2019.


Ethereum is a “decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference”, according to ethereum.org's introduction. ETH/USD has fallen to $100 or so, some investors consider that as its bottom price and is time to invest in.


Decide the investment types that you want

  • Long-term investment

If you did believe and expect the cryptocurrency to rise with a large percentage over a long period of time, you can trade the spot and plan to hold it for 1 year or 5-10 years. But you should invest in the right amount of spare money.


  • Short-term investment

Short-term investment is more suitable for cryptocurrency futures trading adding leverage, which allows you to make profits on both cryptocurrency price growth and fall. With the leverage, you gains will also be amplified. In general, it is a good chance for you to earn great profits with small amount of capitals.


Where to Buy Cryptocurrency?

Cryptocurrency exchange platform is the common place that people invest in cryptocurrencies. There are thousands of crypto exchanges out there in the market, and different exchanges provide different trading modes and services, such as fiat-to-crypto, crypto-to-crypto, futures contract, etc. In addition, you can judge whether an exchange is reliable or trustworthy from its trading volume, withdrawal limits, spread, security, usage experience and more.


With all that covered, you may have a rough plan about which cryptocurrency to invest in. The most important thing is that you should know the risks of investing in cryptocurrency and do smart investment.

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