It is one thing to know what cryptocurrencies are, and it is a different ballgame to understand how to invest in them. Cryptocurrency is all the rage today, and everyone wants to know what is in it for them. Is it safe? What is the gain? Is it better than investing in the stock market? What are the methods for a safe investment?
There are a myriad of cryptocurrencies worldwide, and more are springing up as the days pass. But it is not every cryptocurrency that flies by that you should give your attention. As you may know, some rank higher on the scale of value and importance, and hence preference, than others. Therefore, you must know the coins that are worth your money.
According to CryptoMinati Capital “it is vital to invest money you don’t mind losing”. There is no intermediary to check the regulation of cryptocurrency. No government or body tells you how to use your coins or tokens or where to trade with them. It is usually worth what the users and investors say it is worth and usable in any manner. As great as it may sound, that makes it pretty unreliable.
How To Invest In Cryptocurrency Safely?
As volatile and unreliable as cryptocurrency is, there are ways to invest in it safely. People are making huge profits from trading in coins and tokens, so it is possible to join the profit-making wagon. Try not to get carried away with all the stories of success. There are also losses that could have been avoided if there had been proper research.
Here are a few tips to help you invest in cryptocurrency safely.
Buy with Money You Can Lose
As we have said before, it is best to buy cryptocurrencies with money you don’t mind losing. The market is hardly ever stable, so your profit may rise or fall within the range of 20%. Besides, many of the coins on the market will disappear because they will not succeed. Therefore, the investment is not worth losing sleep; use money that won’t hurt if all goes south.
Work with a Reliable Exchange
The advent of cryptocurrency has necessitated the emergence of many crypto exchanges and platforms. But not all of them are reliable. Therefore, consider going with an exchange that uses cold storage, one that stores assets offline to minimize the risk of hacking. And also, look for one with insurance in the event of online theft.
Keep Researching
Research, research, and research some more. It does not mean you have to learn all about cryptocurrency, but it helps to be abreast of changes and trends. That way, you will be better able to separate the real from the fake.
A cryptocurrency is a digital asset you can use as a form of exchange or investment. You exchange fiat currencies like the euro, dollar, and yen to purchase tokens or coins under a particular currency.
As it gains in popularity, different vendors and trusted stores, both online and offline, now accept cryptocurrencies as a form of payment. It is just like using an accepted form of payment in select places, much like using the euro in Spain or the dollar in the US.
Cryptocurrency exchanges trade in different coins and tokens, making it easy for all categories of traders to buy and invest. Some of these exchanges provide e-wallets to store your coins so that you can have them all in one place and keep an eye on your investments.
An e-wallet works in much the same way as your physical wallet. You can store all your crypto investments in it and safeguard it when you have one. But unlike a physical wallet, you can lock this digital wallet with a key. The key is a unique code that unlocks the wallet and allows you to approve exchanges. It is like a stamp of legitimacy on any crypto trade from your wallet.
Go In for the Long Haul
Don’t invest in crypto with short-term gains in view. Going in for long-term investments reduces buying and selling in a panic. It helps your investment settle and grow and allows you to see coins that have real value and growth potential.
Top 5 Best Cryptocurrencies For First-Time Investors & Marketcap In 2021 [Loved By Redditors]
We picked these coins based on the overall value of the ones in circulation and their security against insider trading:
#1. Bitcoin (BTC): Decentralized Store of Value
When you hear cryptocurrency, the word that may come to your mind is bitcoin. It is arguably the most popular currency, but that is not just because it came to the scene before others. Bitcoin was created back in 2009, and since then, it has gained prominence. It has a market cap of more than $1.7 trillion. The currency is safe because it uses a blockchain that relies on cryptography.
With cryptography, bitcoin transactions are irreversible, and data security is solid. In other words, it is difficult to break through the barrier.
Another reason we chose bitcoin is the fact that it is public. While it does not exactly instill confidence, it should. The public status of bitcoin transactions means anybody can see it without knowing the people involved. That way, it is harder to cheat the system.
Right now, bitcoin seems the most valuable cryptocurrency on the market. Many stores and companies that accept cryptocurrency as a valid form of the transaction are more willing to use bitcoin than others because of its value. One bitcoin goes as high as about $60,000. Investing in it is expensive, but it may be worth it in the long run.
#2. Ethereum: Blockchain With Smart Contracts
Non-fungible tokens (NFTs) enjoy using ethereum because of the different ways you can potentially use it. The same is true with automatic smart contracts. Ethereum is not just a cryptocurrency, but it is also a blockchain. That is what makes it so attractive to program developers.
Ethereum made our list because of the value placed on its technology. It is not just about how much you can get for it; it is also about what you can do with the Ether technology. Ethereum-developed apps are springing up, even from reliable financial institutions. As it stands, more are coming on the Ethereum platform.
The cryptocurrency is more affordable than bitcoin, coming in a little over $4000. Plus, it has a market cap of $520 billion. But that does not mean it is any less valuable than bitcoin; its intrinsic value puts it ahead of the more valuable currency.
Much like bitcoin, ethereum has the potential to triple in value with time and use. And the value is not just about its use as a means of exchange. There is a high chance of ethereum gaining ground on bitcoin due to its potential for applications. So, if you are wondering whether or not you should invest in ethereum, especially as a newbie, you are welcome.
#3. Binance: Largest Crypto Exchange
Binance exchange is vast, one of the largest exchanges in the world, and it has developed its own coin. Back in 2017, when it first launched, the coin was only good for use within the Binance exchange. You could trade and pay different fees on the platform. But now, you can also use it for payment when you want to travel and other transactions. You can even trade or exchange it for other cryptocurrencies such as ethereum or bitcoin.
In other words, if you have Binance coins, you can exchange them for the more valuable bitcoin or ethereum on specific platforms. But bear in mind that the value may mean having to exchange a large number of the coins for a smaller amount of the other cryptocurrencies.
Initially, the coin relied on the ethereum network. But the exchange has since gotten its blockchain called the Binance chain. Considering that the exchange is one of the most trusted globally, the coin is reliable. Its wide usage makes it worth investing in, and there is room for improvement. Its market cap is about $88 billion, and one Binance coin initially sold at $0.10. But the value has since risen to about $530 per coin.
#4. Cardano (ADA): Popular Blockchain
ADA is a relatively safe coin to invest in if you are looking at things in a general sense. The co-founder of ethereum founded the coin so that you may find some confidence in that. It is independent of other projects and rests on its blockchain. If you stake with ADA, you will likely earn a passive reward.
ADA is not a new coin; it has been on the crypto market for some time, even though it did not start as early as others. On the list, it ranks pretty high, coming in close behind the more popular coins.
ADA is known for embracing the proof-of-stake validation method quite early. The method quickens the transaction time, thereby reducing the usage of energy. It does this by eliminating the problem-solving and competitive aspect of verifying transactions that you will find other popular platforms.
Its value is also high with a promise of more because of its applications that are decentralized and capacity to enable smart contracts. However, its growth has not been as phenomenal as you would expect, coming in at $2.01, with a market cap of $66 billion. Nonetheless, it does not detract from its value and potentials in the nearest future.
#5. SOL [Solana]: Blockchain Best For NFT & NFT Games Because of Fast Transactions
With a market cap of more than $60 billion, Solana, or SOL, has gained popularity this year alone. At the start of the year, one SOL went for about a dollar and a half. Now, it sells for a little over $200. Currently, it is the sixth-largest cryptocurrency going by market capitalization.
You can chalk it up to huge investors staking their SOL for long periods in order to earn some interest. That has boosted the available coins and increased the value. Another factor that affects its intrinsic value is its similarity to ethereum. It is the second-biggest cryptocurrency after bitcoin and is the first one to bring smart contracts to the scene.
However, there is always heavy traffic on the ethereum network since everyone wants a piece of what’s on offer. As a result, transacting on the network has become quite pricey. Therefore, users are looking for an alternative, and SOL offers them that.
SOL is about the fastest on the market, transacting about 50,000 transactions in a second. And it has more than 350 applications currently running on the network. It also uses a proof-of-history transaction validation method, which is part of the reason it is the fastest cryptocurrency.
Best Cryptocurrencies With The Potential To Grow Faster
Apart from the popular currencies that make for a safe investment on the market, a few others have fantastic potential. While they may be volatile – what cryptocurrency isn’t – you can earn a lot of money owning and trading with them in the nearest future.
#1. The Sandbox: Overall Best Virtual Metaverse & NFT Games
It is a virtual metaverse that allows game creators to own their games as non-fungible tokens (NFTs) and still get rewards for participating in the metaverse. It is on the ethereum blockchain, so it is accessible to quite a number of users. The blockchain gaming platform uses three products that, when combined, provide an all-around experience when it comes to user-generated content production.
The Voxel Editor allows you to create 3D objects and animate them. Then, you can export them from the editor to the marketplace as NFT game assets. At the NFT marketplace, you can upload and publish your creations, then sell them as needed.
The Game Maker on the Sandbox metaverse affords you the opportunity to build 3D games without any charge. You don’t need to know how to code; there are tools to help you create within minutes.
To make it all possible, the Sandbox metaverse uses a few types of tokens to keep the economy equal and accessible to all kinds of users. It has the Sand token, which is the basic form of a transaction within the economy. Then, there is land, an NFT on the ethereum blockchain that players can buy and fill with their assets, games, and experiences.
Finally, there are assets, which are basically a token generated by players who gather user-generated content. If you have assets on the metaverse, you can trade them on the marketplace. Their primary usage is to work as creative elements in the Game Maker.
#2. Enjin: NFT Platform to Build NFT Dapps On
Enjin coin is hosted on the ethereum platform and is a digital asset that backs the value of assets, such as non-fungible tokens (NFTs) on the blockchain. The aim is to develop and offer software products that give an opportunity to anyone to trade and monetize on the blockchain. All Enjin-platform assets contain a minting resource called ENJ. Once a minting resource goes into an asset, it ceases to be in circulation.
It ensures each asset is unique, scarce, and transparent, has a reserve value, and instant liquidity. Also, there is no risk of inflation with the coin, apps and games have utility with it, and you can melt your blockchain asset at any time. That way, you can get back the valuable minting resource within it. It’s all yours.
Enjin coin uses smart contracts, and game developers can send ENJ to them in order to mint unique NFTs or fungible tokens. The unique minting resource in each token makes them valuable, and the more they are removed from the marketplace, the higher the value becomes.
One billion is the maximum supply of Enjin, and currently, there are over 800 million in circulation. 1 Enjin coin sells at almost $3, and the coin has a market cap of about $2.49 billion.
#3. Polka Dot: Ecosystem of Blockchains
Polka Dot is a token operating like open-source software, a distributed computing platform that is based on blockchains. Other blockchains can build on it to perform transactions between one chain and another in a secure environment. In other words, Polka Dot creates an ecosystem of blockchains. In simple terms, it is a network of blockchains that allows transactions and interactions across parachains or parallel chains.
You can transfer any asset or data type on the platform; tokens are not the assets to use. Its scalability enables different validators to secure many blockchains. You can even create a blockchain in minutes with the network’s Substrate framework.
One of the token’s applications that will benefit everyone on its network is loans. There is a project in the works on the network to connect fiat currencies with DeFi. It will provide crypto loans and allow collateral such as invoices, mortgages, and other tokens. It has a few advantages, with more to come in the future.
There are about one billion Polka Dot tokens circulating, and the token has a market cap of $27 billion. One DOT, which is the name of the coin, is worth about $40 and is the ninth-largest cryptocurrency, edging out big names such as Litecoin and Dogecoin.
#4. Mina: Lightest Blockchain
Mina protocol is a pretty small succinct blockchain that curtails computational requirements so that decentralized apps can run more efficiently. It has a size of 22kb, and it remains constant no matter how much traffic it drives. Therefore, it has been termed the lightest blockchain in the world.
Why is it called a succinct blockchain? It is called a succinct blockchain because it is developing a distributed payment system that allows its users to verify it from the genesis block. It uses succinct cryptographic proofs called zk-SNARKs to verify each block. You can quickly check and sync the Mina network because of the small size.
The snarks do not expose the contents of the blockchain while making it possible to verify the protocol’s state. That makes the system resistant to censorship, but that can have some disadvantages.
You will find the Mina token on several reliable crypto exchanges such as Kraken and CoinList. The token is a hidden goldmine due to the platform’s capacity to solve the trilemma facing blockchains – security, scalability, and decentralization. Its current value is between $35 and $40, but with the potential for growth up to $170 in the next four years. The protocol is worth considering, especially in the long run.
#5. Shiba INU: “Meme” Coin on Ethereum Network
Shiba is an altcoin that is based on the ethereum platform and is widely accepted as an alternative to Dogecoin. Both are meme coins, which means they are cryptocurrencies linked to some theme. Typically, meme coins are inside jokes or parodies rather than digital assets of any value. But these coins have gained value over time, with Shiba having a market cap of about $35 billion and ranking tenth worldwide.
The ethereum blockchain hosts it, making it an ERC-20 token, and that is because the blockchain is secure. In the ecosystem, you will find three tokens: Shiba, which is the primary cryptocurrency you can trade, LEASH, and BONE.
Cryptocurrencies are volatile, altcoins and meme coins are even more volatile. And Shiba falls under the latter category. There is no differentiation, and its value rests on the followers. Therefore, it can rise and fall depending on its value.
However, it is a possible goldmine because it is pretty affordable yet has the potential to become thousands of times more valuable within a short period. If you invested in 1 Shiba coin in August, it would be worth over $127,000 today. That is how much more valuable it can become.
Top 5 Upcoming cryptocurrency games:
#1. Idle Cyber: Blockchain-based NFT Game
It is not just a game; you play to earn. If you have been looking for avenues to own NFTs, consider using Idle Cyber. It is a blockchain-based NFT gaming platform where players can summon, merge, and fight strange monsters invading the Earth. With NFT assets, you can buy and use characters in the game while gaining a digital asset.
$AFK is Idle Cyber’s token, and with it, you can develop, equip and improve your characters in the game. And if you play in PvE games, you have the opportunity to earn. More games will be launched in the coming year, so there are more opportunities to earn and grow. $AFK trades at less than half a dollar, but there is room for massive improvement.
#2. Playermon: Play-To-Earn NFT Game
It is a game where you play and earn as you do so, exploring and battling in the universe with your favorite Playermons. You can fight other players, earn resources, and colonize planets with your fun space characters.
So what has it got to do with cryptocurrency and investing? Glad you asked. The game allows you to complete different quests and earn a reward. Or you can join competitions in various game modes for a prize. These rewards are not in name only; they are real digital assets.
In other words, Playermon is an NFT game in the blockchain industry where you play to earn. It is a metaverse that allows you to earn income when you play and earn. The entry cost is relatively low, but every category of player – creator, player, or investor – is welcome. Everyone on the metaverse can generate personal income through their performance in the game and their creativity.
#3. The Sandbox: Metaverse (Play to Earn Game Platform)
The Sandbox is a game metaverse where creators can preserve their games as non-fungible tokens (NFTs). Apart from creating your games as NFTs, you can also earn rewards for your participation in the metaverse. And it does not matter what your game or coding level is; Sandbox provides ways to create quickly.
A special editor in the metaverse has tools with which you can create your own game in just minutes, even without any coding experience. You can also create a 3D of any object and animate it. Then, you export it as an NFT into the marketplace, where you can make an outright sale or trade it for something else.
Sand token, land, and assets are the tokens that the Sandbox uses to keep the economy open to and usable by all categories of users. So, you can create unique NFTs and sell them on the open and popular marketplace. In some cases, you even stand a chance to earn royalties, depending on the agreement.
#4. Decentraland: Metaverse With Working Game
Based on the now-popular ethereum blockchain, Decentraland is a decentralized world where users buy, sell, or exchange virtual land. Then, using advanced resources, they build on the land and adopt it at the end of the construction. Everything is digital, but it is no less valuable.
The prediction by expert investors is that Decentraland MANA will double its value, going from about $4 to about $8 in five years. So, if you are interested in the metaverse part of the cryptocurrency industry, consider investing in Decentraland. Cryptocurrency is currently volatile, even bitcoin, but what else is new? Many are cashing out of the industry as the currency gains more acceptance.
However, if you want to make a quick gain from trading cryptocurrency, you may not fare so well with this option. It is best suited to those ready to make a long-term investment. Such investments tend to yield better results.
#5. Axie Infinity: Most Popular Blockchain-based game
Axie Infinity is a blockchain game inspired by the cute Pokemon characters. You play the game by raising the digital pets and using them to combat other players in the game. A blockchain game decentralizes the ownership of a game using blockchain technology so that no one person owns it. Instead, every player has a small share in the game. It means that whatever you earn in the game is no longer just a picture on the screen; there is a real value attached to it.
Also, the game has a marketplace that operates much as a real market does. You can trade by selling and buying. But what you make from trading or playing the game can get converted into real money.
You can play to earn on Axie infinity in different ways, such as investing in Lunacia land and harvesting smooth love potions. You can also stake your Axie Infinity shards or breed Axies then sell them.
Research and learn more about these games and metaverse. That way, you will understand the demand and supply within the cryptocurrency industry. It affects everything crypto, be it a game or currency. You will find that they are great projects to invest in, with many still in the works. If you get in early and stay, you will reap better dividends than trying to make a quick dash in and out.
Best DeFi Cryptocurrency Projects To Invest In
Here are decentralized or DeFi cryptocurrencies to consider when investing in cryptocurrency:
#1. Colony Lab: Avalanche Ecosystem Accelerator
Colony uses the Avalanche ecosystem to bring back the integrity associated with traditional finance through innovations. It employs decentralized finance, which uses smart contracts to fund new projects in the ecosystem. These contracts mean there is no need for intermediaries. Instead, it uses blockchain technology.
Colony empowers the ecosystem by making capital available to increase the liquidity in the system. It also runs nodes to secure the networks. With time, it hopes to decentralize itself by implementing a DAO structure.
AVAX is the token used in the Avalanche ecosystem, and its current value is placed at over $100 per AVAX. The market cap is over $22 billion and rising. It ranks high on the DeFi market capitalization list, making it reliable and worth investing your money. So, consider it an alternative to regular cryptocurrencies; you have much more to gain when using a DeFi cryptocurrency.
#2. Aave: Decentralized Liquidity & Loan Provider
It is a non-custodial, decentralized, and open-source liquidity protocol for users looking to earn interest on deposits and borrow assets. Liquidity comes from what the depositors put in, and borrowers can borrow in an undercollateralized or overcollateralized manner. Overcollateralization is providing collateral worth much more than what you borrow. And under collateralization is providing collateral that does not fully cover the money you borrow.
Depending on the borrowing demand, you can deposit any preferred asset in Aave and start earning passive income. Your deposited asset can also act as collateral in the event of needing a loan. And if you earn interest on your deposits, they cover the accruing interest on your loan.
You can sell your assets on Aave if you need emergency funds. But if you do, you close your position on that asset. That way, you won’t get the upside value profit accruing to you if you are long on the asset. Borrowing allows you to retain your position and assets while taking care of immediate needs.
Aave has several tokens, and some are doing well on the market cap list. You may want to check them out and pick suitable ones.
#3. Fantom: High Performance Blockchain For Defi Applications
Fantom is a scalable and high-performance smart-contract platform, secure for all users. It is open-source and decentralized, needing no permissions for operation. The platform is also quite fast and more affordable than older technologies without compromising security, thanks to the revolutionary Lachesis, an aBFT consensus mechanism.
Each network on Fantom is independent, one from another. Traffic does not congest the platform; the networks remain stable with top-notch performance. But with decentralized apps or dApps, the network may become slow because they all use the same infrastructure. It is much like opening many apps on a smartphone. It will become slow, no matter the RAM size.
#4. Pancakeswap Best Decentralized Exchange on BSC Blockchain
With 2.8million users and over 30million trades in just one month, Pancakeswap is arguably the most used decentralized platform worldwide. It is hosted on the Binance smart chain and accepts any token for trading. It is evident from the $18billion total value locked on the platform.
Pancakeswap also provides the opportunity to earn passively when you trade crypto. Cake is the core token of the ecosystem, and you can exchange it with other cryptocurrencies. Additionally, you can farm it, win it, stake it, spend it, and even vote with it. The market cap for Cake is $4billion, and it trades at about $16 per token.
#5. The Graph
The platform is hosted on ethereum and is decentralized for reliability and seamless switching between decentralized apps. It is a protocol for querying and indexing for Web3. Web3 indexes storage and blockchain data for easy access to developers on GraphQL, an open-source-developed query language.
Since retrieving data from blockchains is pretty difficult, the Graph makes it easier to do it using a powerful application programming interface (API). On the platform, everyone has a voice; you own your reputation, data, and identity. Also, the financial contracts and money are programmable, and everything on the platform is private, safe, and secure.
Conclusion: Is It Worth Investing In CryptoCurrencies?
Bear in mind that the cryptocurrency industry is not stable, so investing in it may have disadvantages. However, it promises a lot of profit and growth, both now and in the farthest future. Make it a point to learn all you can about cryptocurrency and keep abreast of the market trends, no matter how much you invest.
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