Cryptocurrency has been a trending topic among many investors and businessmen. The people who bought it in the inception period have earned about 33.33% of profit due to it. And, there are many investors who invested their money in cryptocurrency without knowing its consequences lose their life savings in the lure of earning profits.
So, investing your finance in cryptocurrency requires researched knowledge as one needs to find the best cryptocurrency among the available ones. This blog will help you to know whether investing money in cryptocurrency is an investment option or not, and also which cryptocurrencies are profitable this year.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency designed to work as a medium of exchange for transactions. It is not controlled by centralized digital currency and central banking systems but by a very secure technology known as ‘Blockchain Technology’. This technology uses cryptography to secure financial transactions, control the addition of units, and verify every transfer of assets.
There are mainly three reasons why cryptocurrencies are in demand worldwide. And they are:
- Firstly, you want to protect yourself from the fall of the value of Dollar.
- Secondly, you support the social vision of free and virtual money for the entire world.
- Lastly, you are techno-savvy and you liked this technology.
Best and Profitable Cryptocurrencies to Invest Your Money
Here, is a small list of cryptocurrencies that are trending in the market.
Bitcoin is the first and foremost cryptocurrency in the world of digital money. It came into existence in 2008. But, it gained popularity in 2017, as the value to one bitcoin raised to $20,000 from around $76. After 2018, its value has been decreasing.
The price of Bitcoin changes every day, so if you want to invest in bitcoin, you must stay up to date with the latest news. Whenever you find there is a huge downfall in the value of bitcoin, then that time must a great time to invest in bitcoin. After all, that is how every investment works.
If you hope and have trust in the future of bitcoin, you may invest in it. But, if you are doubtful, it is better to stay away from it.
Ethereum is the next best cryptocurrency after bitcoin. It came live in 2015. Ethereum received an enormous investment of around $150 Million in May 2016. In June 2016, the members found that Ethereum has been hacked, and since then its value has dropped massively.
Though, the financial advisors predict there would be a rise in the value as well as the investment in Ethereum as Ethereum is adopting new technologies with new protocols.
Litecoin is one of the best cryptocurrencies. It was released in 2011 by Charlie Lee, a Google employee on GitHub.
In May 2017, Litecoin started using a technology called ‘Lightning Network’ this technology could complete a transaction four times faster than bitcoin.
Litecoin has also followed the trend of several other cryptocurrencies. Litecoin has shown a great performance in 2017 with a growth of over 8000%. But soon, in 2018 there was a decline in its value just like the value of bitcoin. It is observed that the price of Litecoin and bitcoin showed a similar trend in 2018.
Should You Invest in Cryptocurrency?
Cryptocurrency will give you more profits, but you must also be ready for one more thing- to lose money. Your predictions will not always go right, so think carefully before you start investing in it.
You must also follow the adage of expert cryptocurrency investors, they say you should only invest money that you are not afraid to lose. It’s great guidance to every cryptocurrency investor, so always remember it.
You may also like to read: Best Investment Options For Young Investors