Top 7 Cryptocurrencies to Invest this year

Top 7 Cryptocurrencies to Invest this year

Cryptocurrencies are becoming increasingly popular by the day. It took early investors nearly five years to notice the potential of the cryptocurrency markets. But since 2013, these markets have considerably grown and can no longer be ignored.

Since the first cryptocurrency was launched back in 2009, investors made the highest profits last year (2017). Additionally, the markets of cryptocurrencies grew up significantly in 2017. In January 2017, the cryptocurrency market cap was $18 billion, and by January 2018, it had jumped to $613 billion translating to 3305% value increase.

Things to know before investing in cryptocurrencies

When investing in cryptocurrencies, it is prudent to avoid purchasing when prices are at peak. Instead, buy cryptocurrencies when the prices are at the lowest spot. Therefore, take your time to observe the market and the price changes.

Avoid investing in Bitcoin or any other cryptocurrency for fear of missing out on possible gains. Experts recommend purchasing cryptocurrencies proportionally to alleviate your risk. This can be done by splitting your budget into several parts followed by purchasing your ideal cryptocurrency partially over time.

Store your coins using offline or online wallets. Some examples of online wallets include MyEtherWallet, Jaxx, and Metamask. Check out Ledger Nano or TREZOR to store your coins offline.

Ethereum price and that of other cryptocurrencies are constantly changing. Therefore, there is need to understand the usability and application of each cryptocurrency before purchasing it. This is the only way to know how its value appreciates or depreciates.

Once you’ve set up a wallet, you are issued with a private key to guaranteeing the safety of your coins. Here are the top cryptocurrencies to invest in 2018. All of them have high potential to increase in value this year.

1. Ripple (XRP)

Ripple trade is a gross payment system network that offers services in real-time. Jed McCaleb and Chris Larsen launched the Ripple protocol back in 2012. It aims to collaborate with banks and financial institutions to change how they send money around the world.

It is built upon a native currency known as XRP, consensus ledger, and an open source internet protocol. At the moment, there are approximately 100 billion Ripples in existence. Presently, the cryptocurrency has the second largest market cap value.

2. Bitcoin (BTC)

At the moment, this digital currency doubles as the highest-valued cryptocurrency and the most popular. This doesn’t come as a surprise since it was the first to be invented in 2009. The coin has a decentralized nature and offers fast transactions.

More importantly, it allows users to stay anonymous while transacting. Through the blockchain technology, the digital currency paved the way for the other cryptocurrencies. Most of the time, BTC is referred to as a gold alternative regarding value storage.

Just like gold, the quantity of this digital currency is limited to a particular amount. As a result, the value of BTC increases with its popularity increase. Since most people enter and leave the markets of cryptocurrencies through BTC, the coin is usually the first to make moves in the market. Here are the free bitcoin telegram signals, that will help you to know more about bitcoin investing.

Most of the time, the value of the other coins are expressed in BTC. Since the coin has the highest market cap at the moment, it is less risky to invest in it.

3. Ethereum (ETH)

Launched in 2015, Ethereum supports the formation of distributed applications that are capable of running without third-party interference. The coin uses a unique Programming language and a smart Turing-complete contract system.

A smart contract is an application that ensures automatic fulfillment of clauses in contracts once the planned conditions are met. Smart contracts allow the formation and expansion of other digital currencies that run on Ethereum’s network.

Startups can use the Ethereum network to raise capital for token development through the Initial Coin Offering (ICO). Ethereum is increasingly being traded on cryptocurrency exchanges as a digital currency.

Therefore, if you are confident that a lot of ICOs will choose to use the Ethereum blockchain in 2018, it’s high time you invested in Ethereum.

4. Litecoin (LTC)

This cryptocurrency is a clone of BTC. The major difference is its hashing algorithm that allows faster transaction speeds. The fact that LTC was released in 2011 makes it one of the oldest digital currencies available today. Over the years, the coin has successfully made a name for itself.

At the moment, LTC is among the largest digital currencies with high market cap values. Investors are interested in this coin because of its fast transaction speeds and low transaction fees. Litecoin is likely to increase in value if the markets of cryptocurrencies expand in 2018.

5. Stellar (XLM)

Stellar is more like a payments infrastructure. Its goal is to provide people with cheaper, reliable, and faster financial transactions. The project aims at providing traditional banking services through a decentralized network. Compared to other payment structures, XLM is more accessible and flexible.

Additionally, it runs on the blockchain. It allows for easy cross-border transactions without third-party interference. Its distributed ledger system runs on multiple decentralized servers backed by various individuals and entities. The XLM system is open-sourced to allow a wide range of users to profit from its progress.

6. Nano

This project is determined to become a dependable substitute to traditional currencies. The cryptocurrency is known for its zero-fee and instantaneous transactions. The use of logarithms makes the currency highly scalable.

The fact that its system relies on a delegated POS system means that it is less prone to possible attacks. This project promises real value when it comes to the handling of transactions. Nano’s zero-fees and instant transactions make it a useful cryptocurrency to invest in 2018.

7. Monero (XMR)

Privacy coins allow private and untraceable transactions. This currency has one of the largest market caps amongst privacy coins. It is perfect for people who are more concerned about their privacy when making transactions. Monero’s high market cap makes it a perfect cryptocurrency to invest for long-term benefits.

Conclusion

Beware that investing in any cryptocurrency is a risky move. The market caps of the cryptocurrencies mentioned above are highly volatile thus investing in them can lead to profits or losses.

Therefore, you are advised not to invest more money in any cryptocurrency than you are ready or willing to lose. Remember to carry out thorough research before making any investment decision.

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