Everybody would agree that 2017 belonged to cryptocurrency and blockchain technology. Although the first cryptocurrency, Bitcoin, was discovered in 2009, it was only in 2013 that it became huge. Thereafter, there was no looking back for crypto. Today, the market cap for all cryptocurrencies has increased by 4000% in just one year- from $21 billion in March 2017 to $454 billion now! Such phenomenal growth is almost unheard of and this blog will guide you more on the best cryptocurrencies to invest in 2018.
The chart below shows the growth of market capitalization in cryptocurrencies.
For investors, crypto is literally a gold mine waiting to be exploited. But cryptocurrency is no more only about Bitcoin. Today, there are 1500 virtual currencies and all show immense potential. The choice is indeed baffling!
Let’s take a look at the best cryptocurrencies to invest in 2018.
Bitcoin holds the lion’s share of the crypto market, almost 40% of the total cryptocurrency market cap. Being the oldest digital currency, Bitcoin dominates the cryptocurrency landscape. But it has seen its share of highs and lows. BTC’s price soared from $76 in September 2013 to $20,000 in December of the same year and then crashed to $6,000 in February 2018. Investors were alarmed at these wild fluctuations but that hasn’t deterred them from investing. In fact, investors who purchased BTC during the slump have already made 100% profit on their investment till date.
So, what is the ideal time to buy Bitcoins? Why does its price see such ups and downs? Let’s analyze:
- On August 1, 2017, Bitcoin split into two- BTC and Bitcoin Cash. Investors who had anticipated this move had purchased big booty before and almost doubled their investment.
- Entry of rival currencies dipped Bitcoin’s price to $10,000 in early January 2018, almost half of what it was worth in December 2017. This sent panic waves among investors leading to mass selloff of BTC and further lowering of price to $6,000.
What is quite obvious is that Bitcoin is prone to fluctuations but still hold a lot of investor interest. As with other investments, slump period would be a buyer’s market and the nest time to purchase Bitcoins. a word of caution for potential investors: It’s best to stay abreast of latest Bitcoin news and trends so that you can jump ship before a storm hits. Subscribe to our blog for timely and accurate news about Bitcoins and blockchain technology. It pays to be informed.
Ethereum is the closest rival to BTC. It showed a stupendous growth of nearly 3000% in market capitalization last year. ETH touched its highest price of $1423 on January 4, 2018, and a market capitalization of $138 billion.
But is this a good time to buy ETH, or has it already reached its peak and is bound to nosedive anytime? Have a look at the chart below to get a grip on price trends for ETH.
The reasons responsible for the troughs and peaks in ETH’s life are:
- In May 2016, Ethereum received a huge investment of $150 million that shot its price from $1 in January 2016 to $14 in May 2016.
- In June 2016 Ethereum blockchain was hacked and around $60 million worth of Ether was stolen from wallets. This lead to a sharp fall in ETH’s prices in a day from $21.52 on 17th June to $9 on 18th June.
Ethereum is more than a digital currency. Unlike Bitcoin, it is a more advanced blockchain platform where entrepreneurs can easily build their blockchain applications. It’s client-friendly interface and robust architecture has endeared it to millions of people who swear by its security, transparency and scalability features. Come 2018, many new features are poised to be added in Ethereum. So, watch out for this trendsetter!
Read: Bitcoin vs Ethereum
2017 saw a happening kid on the block- Ripple (XRP). Ripple grew by 36,000% in a year- from $0 to $2.4. Though Ripple’s value is much lower than both BTC and ETH, its market capitalization of $35billion is not something to be taken lightly. In terms of market share, XRP is placed third, behind Bitcoin and Ethereum.
Ripple’s USP is that it’s not just a virtual currency but also a payment gateway. Funds transfer using Ripple are efficient, cheaper and securer. International giants such as JP Morgan, American Express and Santander trust Ripple enough to conduct their daily business using its blockchain.
Investors need to look out for Ripple’s trends. If it forges any more strategic partnerships with financial firms or banks, its prices could go upswing and Ripple could just be out of your reach. Presently, XRP is at a low of $0.908, so it might be a good buy.
Ethereum’s Price Trend
Litecoin is the last contender on our list. LTC’s close proximity to Bitcoin keeps grabbing eyeballs. Litecoin was invented in 2011 as an improvement over Bitcoins. It performs transactions 4 times than Bitcoin and was the first blockchain to perform a Lightning Network transaction- transferring 0.00000001 Litecoin from Zurich to San Francisco in under one second! This is a pro in favor of Litecoin and is bound to help increase its price over time.
Litecoin Price Trend
Investment Strategy Roadmap
So, how should you decide the best cryptocurrency to invest in 2018? That depends on your investment goals and some key differentiators.
Compare crypto currencies as per the following differentiators:
- Founders and technical team
- Future roadmap and projects in the pipeline
- Technological competency
- Market insights and trends
The following questions about your investment objectives will help you identify your best bet:
- Are you looking for long-term investment, more than 6 months at least?
- Will you be selling your crypto at once or in lots?
- Would you sell it once it reaches a particular price or after a certain time period, regardless of its market value?
Once your objectives are crystallized, make an informed decision about the best cryptocurrencies to invest in 2018 this year. Should you need any more assistance, do not hesitate to reach out to us.
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