How to Make Smart Crypto Investments
As you start your journey into the world of cryptocurrency investing, having knowledge about how to make smart investments is integral in ensuring success. Just like with the regular stock market, the crypto market rises and falls and requires a lot of skillful thought to avoid falling flat. With that in mind, how can someone make a smart investment when it comes to cryptocurrency?
In general, experts and long-time crypto users recommend having a healthy mix of larger, more stable investments and smaller, more unpredictable investments. Many places will recommend a mix of 80:20 in terms of larger:smaller. This will prevent you from losing everything if one of your investments happens to go under.
In this article, we’ll highlight both larger and smaller cryptocurrencies to consider investing in. By the time you finish reading, you should be able to come up with a solid game plan for starting your investment journey.
Larger Currencies to Consider
The following currencies are what you’re going to want to invest more into. These cryptocurrencies are more stable and extremely unlikely to completely crash and leave you in the dust. Simply speaking, if you want to make more off of an investment, it’s best to get in on these larger, more stable cryptocurrencies to protect yourself and see success.
Bitcoin is the cryptocurrency that started it all. Nobody knows who actually created Bitcoin as it was created under a pseudonym. Bitcoin was officially launched in 2009 and has maintained its spot as the largest and most popular cryptocurrency currently available.
The way Bitcoin is made allows users to obtain and trade it without worrying about becoming a victim of scam or fraud. It’s also considered extremely volatile, mostly because there is a creation cap of 21 million. Once 21 million Bitcoins have been mined, no more can be created. The only way to obtain Bitcoin after the cap is reached, likely in 2041, is to trade it within a crypto exchange.
Ethereum is a crypto exchange system that allows you to buy, sell, and trade cryptocurrency within the platform. Beyond that, they also offer Ether, the cryptocurrency hosted by the platform. This platform uses an app that allows you to use as a crypto exchange and you also get access to an app store that allows you to purchase different apps and games using Ether.
Ethereum is also decentralized and unregulated, meaning no bank or government entity oversees transactions and trades. With that said, the network Ethereum uses is completely secure and all transactions made within are protected through the blockchain.
Binance is considered the world’s largest crypto exchange and also has its own currency you can invest in. This platform allows you to trade over 50 different types of cryptocurrencies and only charges a small trading fee to do so.
You can access Binance through the internet or on their app that can be purchased from the Apple Store or Google Play. The Binance platform has helpful step-by-step instructions for both beginners and veterans respectively and uses a state-of-the-art security storage system to ensure your cryptocurrency is safe.
Adding in Smaller and Less Stable Currencies
Although investing in larger and more stable cryptocurrencies is recommended, it’s also good to have a few lesser known or unstable currencies on hand too. Having a hand in multiple small currencies is nice because if one crashes, you don’t have to worry about losing everything in the process. With that said, it’s important to remember not to put too much trust in these smaller entities because they’re more likely to fail than larger, more stable currencies.
Dogecoin is an altcoin that was created in 2013 as a revitalization of the viral Doge meme from years prior. While it wasn’t meant to be completely serious, its worth skyrocketed in 2021 thanks to a Reddit thread for crypto investors. However, it’s fast ride to fame fizzled out pretty quick. With that said, this is a fun cryptocurrency to get into if not for the long term, then for a quick laugh and feeling of camaraderie as you’re part of the meme.
XRP is the cryptocurrency created by Ripple. Ripple failed in its original venture and eventually changed to OpenCoin after seeing how well Bitcoin took off. After delving into the cryptocurrency world, they changed their name to Ripple Labs and now offers cryptocurrency for far cheaper and much faster than Bitcoin.
When XRP launched, 1 billion XRP coins were put into circulation and there is no immediate decision to cap at this point. Although its newer and less stable than Bitcoin, it’s certainly a good currency to take a chance with.
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