[#10]Best Cryptocurrency to invest in 2018
Best Cryptocurrency to invest in 2018
2017 will be known for the rise of digital currency and as we know "Bitcoin" is the mother of all cryptocurrency.Year 2018 has not started of well and cryptocurrency market is not showing healthy signs.As I am writing this article Bitcoin is still on decline.A havoc is created among the mental stability of bitcoin or altcoin traders or investors.Some are saying that bitcoin will never bounce back while others are still positive .So the questions are never-ending and the first and foremost among them is "Should we invest in cryptocurrency"? I would love to answer it before moving further and my answer is Definitely YES.But you should know the proper way to invest in cryptocurrency.I would say first understand the basic of cryptocurrency.If you know the reason of origination and existence of any cryptocurrency then it will be easy to take decision.Trust none but your decision.Incase you are unaware about cryptocurrency and other important terms then read our previous articles before moving further.Why I am saying you to know about cryptocurrency? The answer is as simple as you think.Your aim is not to simply invest in cryptocurrency but to gain profit from your investment.No one does now-a-day any investment on their sixth sense or gut feeling.Still in today's world also we take risk but we call it 'calculated risk'.As the name suggests risk that is taken after doing some calculation.These calculation can only be done if you know what parameters should be taken into consideration.Remember one thing very carefully in 2018 you have to do two things.
- Invest carefully in Cryptocurrency.
- Be Careful and take all the preventive measures to protect your cryptocurrency.
I am fully confident that once you read our previous articles you will be fully equipped with cryptocurrency technical prerequisites.
Basic Criteria to Invest in Cryptocurrency in 2018
- Diversify your investment in cryptocurrency domain-
In simple words invest in atleast 10 cryptocurrency.I will explain you with an example.Suppose you want to invest $10,000 in cryptocurrency .So how should you invest ?Their are many ways to invest.Easiest is investing entire amount in Bitcoin as it will give skyrocket returns.Let's for a second I agree with your strategy of investing in Bitcoin and fortunately you made 2x times .So what will you call yourself? A lucky guy or a logical investor.I leave the answer to yourself.If you ask me I will just say "Every dog has it's day " and it was yours.Again the question remains unanswered.So lets work on it.What we will do know is that we will try to bridge a balance between high risk coins and low ones.Here from high risk I means the cryptocurrency which fluctuates a lot.You can find lots of highs and lows.So out of ten we will select 4 of this type.It has both positive and negatives.If your lucky you are gonna make 10 x and vice versa.We will take three coins which are very stable and fluctuates little.Now the left two should be the coins which are very large number in circulation.Out of two one should be high circulation in market with high fluctuation and the other should be high circulation with low or minimal fluctuation.So we are done with 9 coins.And no need to say 10th coin will always be "Bitcoin".We can never ignore Bitcoin.Can we?
- Follow atleast three month chart to invest in any cryptocurrency.
Don't invest randomly in any cryptocurrency.Remember the currency which will surge very fast will also decline fast.So here you need to make strategy .First ask yourself whether you want to invest for long term or short term?Because you need to follow separate strategy.Visit CoinMarketCap and check for the performance of cryptocurrency you want to invest over a period of time.
To put my point more clearly I have taken a snap chat of a cryptocurrency for a particular period.If you see carefully their is a little deviation and the graph is slowly moving upward.What this graph says?Infact it's says a lot but one thing anyone can understand is their is stability and you will make money if not fast but definite.
Another important parameter is market dominance.You need to be very careful about this parameter.It will not change very fast but even a small difference will result in big change.You can find lots of article on "market dominance of Bitcoin is decreasing".Have you ever thought why intellectuals are taking keen interest in evaluating this parameter?
What can you figure out from above graph?Any Guess? Let's understand it in very simple term.Suppose you have launched a detergent cake in the market few months back and your positioning is "low cost".It's means you want to penetrate the market with low cost strategy.Penetrating the market means acquiring new customers.So after 3 months of launch you will calculate the penetrating parameter in terms of percentage and If it shows an increasing graph then it means your strategy is working and if it's NOT then you need to go back and work on your basics.Similarly,If the market capitalization of any cryptocurrency is increasing even though it's slowly then it has a very simple meaning .The cryptocurrency is gonna stay .The strategy is working in the favor of cryptocurrency.
- Always invest your money in short term and long term cryptocurrency.
This is a bit confusing.You will sure think what really the above statement means?I just want to make it clear again "Short term cryptocurrency" means here the coins which is meant to be for short term gain.These coin will skyrocket in an epigrammatic span of time and then will downturn much faster.If you have invested in the very early stage you will definitely make money else you will only lose.So if you are investing $10000 in cryptocurrency then invest only 30 percent in high risk coins and rest in coins with high market dominance,less number of circulation etc.
I will recommend you to join Binance for buying and selling cryptocurrency as this is the best and fastest growing cryptocurrency exchange with minimal fee.
I have received lots of mails asking me about "my favorite list of cryptocurrency" for 2018 investment.I have worked on all the possible permutation and combination.I see below 10 coins very promising in 2018.
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