The last few months have been a real boom for cryptocurrency and blockchain technology in general. From Bitcoin reaching a stratospheric $5,000 to new coins that trade at merely few cents.
So if you are the very beginning of your cryptocurrency investment journey, it may be overwhelming to choose where to put your money
The obvious choice would be to invest in Bitcoin but the price is becoming so high that unless you have thousands on your bank account, you will not be able to afford one bitcoin.
So how do you choose your favourite cryptocurrency to invest? Do you just have to look at the market prediction and price? Or maybe there is more to it?
Choosing a Cryptocurrency Investment
There are a lot of factors that are involved into picking the one. But the initial price is one of the last things that should be looked at. Instead, try focusing on:
- The innovative technology – some coins are better than others; the deciding factor is whether the technology behind offers something unique
- The community around the coin – if you are planning on investing in cryptocurrency, you have to become an active member of the community to understand the future of the coin
- The availability – consider how easy it is to purchase the currency, which exchanges offer it and whether you have to buy a major cryptocurrency first
- Wallet – you want your coins to be as secure as possible, so before you choose an investment, research which wallets accept a particular cryptocoin
- Developer’s activity – a legitimate coin will have a history behind it; check who is the person behind the coin.
So is this enough to be able to choose from over 700 cryptocurrencies? Unfortunately, if you are looking into a lesser-known coin, or one that just has been released, there are many more complex aspects that you have to be aware of. If you need more information, check out our post on how to choose a cryptocurrency to invest in, where we cover everything in detail.
But if you are up for a shortcut, we have a guide for you that will help you with deciding on how to choose your favourite cryptocurrency based on what are you interested in 🙂
