You probably have heard of Bitcoin, haven’t you? This cryptocurrency is well known for the several millionaires it has created. People that invested in Bitcoin at an early stage saw their assets grow a whopping 1,300% in 2017. It is very impressive, isn’t it?
Now, you will be more surprised to learn that other cryptocurrencies have had even higher value surges. Just consider the impressive case of Ripple’s 36,000% gain. Because of the possibility of increasing one’s assets at a surreal rate, many people are interested in buying cryptocurrencies now.
If you are new to the crypto world, you probably have many questions. What app should I use to buy cryptocurrency? And more importantly, what cryptocurrency should I buy? Well, this post has been created as a guide for newcomers to cryptocurrency. You will find here some basic information and the list of the most recommended cryptocurrencies to buy this year. Let us begin!
What Kind of Cryptocurrency Should I Buy?
As mentioned before, most people have heard of Bitcoin. This was the first cryptocurrency in the world. It was created in 2009 by an unknown developer with the pseudonym of Satoshi Nakamoto. Bitcoin demonstrated that cryptocurrencies can be excellent investment opportunities.
Cryptocurrencies are an alternative to fiat money and have several advantages like privacy and decentralization. Decentralization means that your assets are not placed in one single location like a bank. Instead, the existence of your assets is recorded on the blockchain. Since each node has a copy of the blockchain, your money is protected against hardware failures and disasters.
By now, you probably want to ask again, what cryptocurrency should I buy? Well, before answering the question, let us see some of the characteristics you must look for in a cryptocurrency. Not all cryptocurrencies are created equal.
You must know that the value of cryptocurrencies is very volatile. As investments, cryptocurrencies are highly speculative. You are better off buying cryptocurrencies right after the initial coin offering (ICO). However, if you want to minimize the risk, you can wait to see whether the cryptocurrency is adopted for transactions.
Also, you want to invest in cryptocurrencies with a large market cap. And something important, the technology used for the cryptocurrency platform must be top-notch. Check whether the cryptocurrency you are interested in buying is traded in different exchanges. These are the marketplaces where cryptocurrencies are bought and sold. Being actively traded increases the liquidity of the cryptocurrency.
Last but not least, you must check the recent trends and market behavior of the cryptocurrency. High volatility can be beneficial if the value of the cryptocurrency climbs abruptly. It would not be so good if instead of a climb you get an abrupt devaluation.
What Cryptocurrency Should I Buy First?
Your question should be by now, what new cryptocurrency should I buy? OK, let us go to the list of the best cryptocurrencies in 2020:
• Bitcoin (BTC), the oldest and most traded cryptocurrency in the world. It has a large market cap and liquidity is not a problem with it. Bitcoin is the answer if you asked, what cryptocurrency should I buy now?;
• Ethereum (ETH), although introduced relatively recently (2015), this cryptocurrency is already second to Bitcoin in terms of market cap. Today, it still has a lot of opportunities to offer an investor;
• Ripple (XRP), this cryptocurrency is widely used for money transfers around the world. As mentioned before, Ripple increased its value by 36,000% in 2017. What are you waiting to invest in it?;
• Bitcoin Cash (BCH), this cryptocurrency is a fork of Bitcoin. In terms of market cap, this cryptocurrency occupies the fourth place. This is a cryptocurrency with a promising future, the type of opportunity for a daring investor;
• Litecoin (LTC), another cryptocurrency with a promising future. Currently, it is relatively cheap. But it has already provided good gains to some investors. Its acceptance is increasing, and it can be used as a payment option in some places.
So, what cryptocurrency should I buy today? Well, the decision is not simple. However, if you are new to the crypto world, you should opt for well-established cryptocurrencies like Bitcoin or Ethereum. The fact that they are widely traded provides enhanced liquidity.
After gaining some experience you will be able to take bigger risks. ICOs provide the biggest opportunities to obtain large returns on your investment. However, a fall of the cryptocurrency could occur some days or weeks after its ICO. Hence, these types of investments are not recommended for newcomers.
What App Should I Use to Buy Cryptocurrency?
If you want to start trading a cryptocurrency, there are some things you should do. First, get an electronic wallet. This device is used to store safely your cryptocurrency. Second, you have to connect your wallet to a payment method (bank account or bank card). Nowadays, you can associate a credit or debit card with your wallet to purchase cryptocurrency more easily.
Finally, you have to register in exchange to start buying and selling cryptocurrency. Commonly, an exchange has a website and an app for mobile use. For a newcomer, Coinbase is the easiest and safest option. This exchange charges a small percentage fee for transactions within the United States.
For simplicity, Coinbase is the most recommended exchange. It allows buying and selling major cryptocurrency through a very friendly interface. Transparency is one of the strongest points of this exchange since no hidden fees are applied.
Now, you probably want to ask again, what cryptocurrency should I buy first? The expert recommendation is to buy Bitcoin. Will I get a good return on my investment? Hopefully!
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.