To date, there are 2290 cryptocurrencies. Some of them are slag, the developers do not develop them, they left them free-floating, and if you invest in such coins, then losses are inevitable. But there are also promising coins, if you notice them in time, you can well increase your capital. Today we will look for such coins. We will consider options for long-term investments (from 3 months or more).
For analysis, it is best to use Coinmarketcap - there is a rating of all cryptocurrencies by capitalization, you can see a lot of useful information. If you are interested in information on a particular coin, then you can enter it in the search and analyze the rating of cryptocurrencies. Learn more about cryptocurrencies at https://elarabcoin.com/.
Where to buy cryptocurrency
Cryptocurrency can be purchased on a crypto exchange or from an online broker. Below you can find a list of the most reliable platforms.
For long-term investments, you need to choose cryptocurrencies that are at least in the top 30. They are more stable, traded on many exchanges, and the likelihood of a sudden scam is minimal.
Other less popular coins can also be considered for investment, but it should be understood that here, in addition to the risks of a fall in the exchange rate, there is also the risk that the coin may simply fall off.
As an example, let's analyze the Monero coin
Here we are interested in the following indicators:
- Rank - the place that a coin occupies in the capitalization rating.
- Cost – It is best to buy cryptocurrencies that are cheap. So there is a high probability that the rate will go up.
- Market capitalization - how many coins are available, the figure is not exact, but the indicator is very important, it is used to rank all cryptocurrencies.
- Volatility is how fast the price of a currency changes. For long-term investments, it is better to choose volatile coins. For example, if you take Tether, then the exchange rate there is pegged to the dollar, it is quite stable and there is no point in counting on a sharp increase.
To calculate volatility, you need to divide the market capitalization by 100. For example, for Monero: 139,987 BTC / 100 = 1399.87 BTC.
We received 1% of capitalization. Then we compare it with the trading volume for 24 hours - 8,144 BTC. It is important that the daily volume is large for 1% of capitalization.
Thus, the coin can be considered volatile, as in the case of Monero.
- Circulating supply - how many coins have already been issued. The fewer coins on the market, the more value each token has.
- The general offer is how many they plan to release.
- The maximum supply is how many coins can be issued in total.
It is important that the total offer and the maximum are approximately equal. Because if the total offer is very different from the maximum, then it may be that the developers have kept some of the coins for themselves. If at some point they start selling them in large quantities on the exchange, then there is a possibility that the price will drop sharply.
- Exchanges - look at how many exchanges you can buy cryptocurrency. The more of them, the better. If there is only one exchange, then this is bad. At some point, the administration of the exchange may remove the coin, and then it will not be possible to sell it. This has already happened many times. And this applies primarily to little-known cryptocurrencies.
- Chart – it is important to look at the cryptocurrency chart for the entire time that the exchange rate has changed. If we see that the price has increased a lot lately, then we should refrain from buying. On the other hand, a falling rate is a good entry point.
Social activity.
It is important to subscribe to the telegram news channel and join all social network groups before buying a coin. Next, you need to observe how often news is posted, how development is going, etc. The more useful news on the topic, the better. And if we see that the developers are not doing anything, there is no news, then this means that they have lost interest in their project. It is better not to buy such a coin.
Also in social networks there may be news on which the rate of cryptocurrency will depend. For example, if they plan to add it to a new exchange, or create a new wallet.
Forum discussion.
It is important to know if there is any activity on the part of investors when the last message was written? One of the most popular forums is bitcointalk.org, we enter cryptocurrency in the search and read the thread. The forum is in English, you can, as an option, translate it in the browser. For example, the Monero coin is quite popular and discussed, 2049 pages have been created today, the discussion goes on every day.
What cryptocurrency to invest in
Bitcoin remains the most popular cryptocurrency. Investing in this digital coin is still profitable. Experts are confident that bitcoin will continue to grow. Investors remain bullish on this issue. Bitcoin has a high chance of gaining recognition from the US authorities. Ether has the same prospects. But analysts favor bitcoin. Binance Coin, XRP, Cardano, and Polkadot are considered other bargain options.
Binance Coin and Cardano have a good chance of beating Ethereum. Binance Coin is actively supported by projects of the Binance crypto exchange. Long-term investments in this coin can bring good returns. The prospects for Cardano are determined by hundreds of projects that should start working this year. So it is also worth considering the option of investing in this cryptocurrency.
Ripple's XRP token may be a good investment. The company launched a $250 million fund, which reflects its serious ambitions. The business connected with payments is successfully developing. Therefore, such investments can turn into good profits.
Polkadot is another investment option. It is a successful project dealing with the elimination of difficulties in the interaction of blockchains. Cryptocurrency is evaluated quite positively.
Where to invest in 2022?
The following options are suitable for investments in 2022:
- Bitcoin;
- Dogecoin;
- Bitcoin cash;
- Litecoin;
- Ethereum.
Bitcoin maintains its dominant position in the market. It was expected that Ethereum would provide worthy competition to this cryptocurrency. But in practice, everything turned out differently - bitcoin naturally holds the lead. This trend is unlikely to change in the coming years.
Dogecoin is a cryptocurrency with a decent future. By investing in it now and in 2022, you can reap serious benefits. This is a good option for long-term investments.
Bitcoin Cash demonstrates high speed and efficiency compared to regular Bitcoin, so it may also be of interest to investors. Litecoin stands out for its ultra-fast transaction times. This cryptocurrency is also very popular. Well, you can not discount the Ether.
Conclusion
No matter how reliable a cryptocurrency is, it still cannot be trusted with 100% of investments. It is better to distribute money among several instruments, so you can reduce the risk of losses. Remember that cryptocurrencies are a very risky type of investment, the price can change at any time, it all depends on many factors and news.
