Cryptocurrency is the most profitable object for investing money by the end of 2016. At the same time, the risks associated with jumps in Internet gold quotes are incomparably greater than with respect to, for example, precious metals, resources or real estate. Should we continue (or begin) investments in cryptocurrency in 2018, and how to choose from the 800 types of its most promising?
The rate of bitcoins and many other types of cryptocurrency shows stable growth. The price of BTC has risen 2.5 times over the past six months: on January 1, it was given $ 945, and exactly 6 months later it was already $ 2,400.
Ahead and reputation of “digital gold”:
- this is indicated by the scale of its use, the application of technology in economic activity, including at the state level, attempts to create national coins;
- Bitcoin began to be accepted for payment in a number of large online stores. Technologies for working with cryptocurrency are constantly evolving; new financial instruments are emerging for storing funds, mining, even street machines for carrying out payment transactions;
- Many experts believe that the position of Internet money will grow due to the fact that Chinese and Indian consumers and investors have entered the cryptocurrency market , and that states, companies and individuals will look for finance that is not tied to the political situation in the world and the dollar .
An increase in the value of Bitcoin is forecast at 300%, in dollar terms – up to $ 3-5 thousand. At the same time, it is possible that from time to time positions will fall or “freeze”. Nevertheless, experts believe that digital currencies have not yet exhausted their potential.
When buying a cryptocurrency, you need to remember that long-term investors (with leverage at least a year) have never lost their allocated capital over the entire existence of “Internet gold”. But short-term sometimes disappointed after a sharp decline in quotations.Interesting! In 2010, an American bought two pizzas for 10 thousand bitcoins. Now he would have a fortune of more than 24 million dollars.
Choosing which cryptocurrency to buy among the young, alt-koins who have risen in recent months, it should be remembered that their course is to a large extent warmed up by speculation, advertising and hype. Predicting it is more difficult than the position of “old men”, such as Bitcoin and Ethereum. It can grow further and unexpectedly fall.
With respect to bitcoins, a number of technical difficulties are of concern. With the expansion of the generated money supply increases the load on the network (which leads to the fact that transactions are slower), small transactions become unprofitable due to the large commission. This can lead to a weakening of the status of BTC as a payment instrument, which means that it affects, if not the price, then the rate of change of quotations.
Many users still see the financial pyramid in cryptocurrency investments, and its growth is perceived as a “bubble”. It is more likely to predict a change in the rate of Internet money only over the long term.Interesting! An experiment conducted in 2016 by one blogger showed that buying Bitcoins for $ 14,000 (with their further sale at the end of the year) and pouring the same amount of money into online mining HashFlare gave approximately the same profit result.
Top 5 investment opportunities
What to look for when choosing an investment option:
- for the current capitalization (the amount of Internet money translated into real, that is, the amount of investment already made);
- on growth in the first months of 2017;
- on the value of the currency, in particular, the innovative technological development associated with it.
Bitcoin is a traditional investment option. According to analysts, all investment methods will be beneficial: simply acquiring and storing and then selling, cloud mining and building farms.
Ethereum is a platform cryptocurrency based on smart contract technology. It is of interest to many players in the financial market, including Sberbank. For the first half of the year, its price has increased 34 times.
Ripple demonstrates the largest growth rate in value, 42 times in 6 months. These are coins of a public exchange with the possibility of free transactions. Despite the “youth”, in many respects according to the results of 2016, ripple breaks out into second place after BTC.
Monero is a truly anonymous online currency. It is distinguished from others by a low level of volatility, but a stable increment. For the first half of the year, investors received income of 334% from it.
LiteCoin is a popular coin traded in huge quantities on exchanges. Showed a jump in value from $ 4.5 to $ 40 in six months.Interesting! The share of altcoins (non-bitcoins) in the total capitalization has increased over the past couple of years by 2.4 times and now stands at 55.3%.
In Russia, the law on “money substitute” was expected in the winter of 2017-2018. Not everyone, as the head of the Central Bank, shares his enthusiasm for the opportunities offered by new Internet technologies. A normative act can, with equal probability, announce both the status of foreign status and a total ban on the use, conduct of operations, and the mining of cryptocurrency. This must be borne in mind when assessing risks and profits when investing in “digital gold”.