The cryptocurrency place is a “not-so-new” and untapped money making venture that is very intriguing if you get to understand it ,especially in a country like Nigeria. As part of the rich content of this article, I have added some bonus tips at the end about long term investment.To understand the concept of cryptocurrencies, let’s quickly look at what it is,
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.Cyptocurrencies are a kind of digital currency, virtual currency or alternative currency. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems.The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
The first cryptocurrency, Bitcoin, was invented back in 2009. That was just the beginning though, and nobody really knew about Bitcoin until 2013. However, since 2013 the cryptocurrency market has seen huge growth — growth that has been hard to ignore. There are now more than 1500 different cryptocurrencies, all created in less than 5 years.The cryptocurrency market isn’t just about Bitcoin anymore. There are other cryptocurrencies that have entered the digital space as well such as Ethereum, Litecoin and Ripple amongst others. All of these have performed incredibly well over the last year.
There are a lot of things being said about the future of cryptocurrencies. Some people believe that the cryptocurrency phase won’t last long especially here in Nigeria, some even see it as a ponzi scheme, while others think they’re going to be around forever.
It is difficult to predict the future of cryptocurrencies, but one thing is certain and that is the increasing popularity of cryptocurrencies. One of the reasons why cryptocurrencies are becoming more popular is because of Blockchain technology, which is the main technology behind all cryptocurrencies.
Blockchain technology is the next big thing – it is secure, trusted technology that was first used by Bitcoin. You can’t learn how to invest in blockchain, though. Instead, you learn how to invest in the cryptocurrencies solely built on the blockchain system and that includes all of them.
Here are some reasons why you should invest in cryptocurrencies
1) Crypto’s promising future.
As with any investment, you need to keep focused on the long-term viability. If you become obsessed with short-term microanalysis, every variation in price will have you worrying that you’ve made the wrong investment decision. This could cause you to panic and sell at a lower price than you bought it for, when in reality, holding until the prices recover, and maybe go even higher, would have been the more sensible move. The cryptomarket is volatile and price fluctuations WILL happen, with some more concerning than the others. The recent plummet of Bitcoin towards the $6,000 mark made even the most hardened investors a little hot under the collar, but two weeks later it’s bounced back to over $9,000 per coin with predictions of a further price surges in the coming weeks. You should always be looking at crypto-investment over the medium to longer term, so 1, 5 and 10 years, as this is where the true gains are likely to be made.
2) Blockchain is here to stay.
Most of the industry and media attention on crypto-investment to date has focused on Bitcoin, when in fact there is a plethora of cryptocurrencies in circulation to choose from, all backed by really exciting, innovative individuals and teams, and we will be learning about some of them today.The underlying technology, Blockchain, is going from strength to strength and is actually far more exciting than the daily fluctuations of a specific coin. If you delve deeper into the technology of Blockchain, you will quickly find that many global organisations are starting to invest significant funds and resources into crypto, including brands like Microsoft. Many brands are researching how crypto could be infiltrated into their already successful business plans and strategy for the future, further cementing widespread opinions that blockchain will inevitably become an integral part of the way businesses operate across the globe.
3) Improved Crypto regulations
Arguably, the biggest benefit to come out of the unprecedented rise in cryptocurrency is the introduction of better cryptocurrency regulations which are now beginning to take shape. The reduction in uncertainty as a result of such regulations has been significant in boosting trading activities and subsequently, coin prices. Tighter regulation will help to tackle many of the crypto scams which have prevented investment desirability previously, as all new coins and investment opportunities will have to adhere to certain criteria. Consequently, such regulation will help calm the fears of potential investors and provide a stronger foundation for future investment growth.
4) It has never been simpler to invest
From personal experience as a crypto investor, the prospect of making the leap into cryptocurrency can be a daunting prospect at first. I was lucky to have received advice from an experienced friend when I made my first crypto-investment and this certainly helped to alleviate some of my initial concerns and worries. However, times have changed and there is now more information out there to enable investors to easily navigate through the cryptocurrency world without many of the previous barriers. Coinbase, Luno and many others which have a huge customer base of nearly 10 million investors are one of the most popular digital wallets presently, allowing investors to purchase Ethereum, Litecoin, Bitcoin and Bitcoin Cash to name a few.
5) You will be a key part of technological innovation.
The underlying technology of Blockchain is not only the backbone of the cryptocurrency world, it is doing so much more behind the scenes than any of us really give it credit for. From supply chain management and accounting to greater quality assurance, more transparent production lines and even fairer voting systems, Blockchain has the potential to transform the way our world operates for the better. By investing in cryptocurrency, you are helping to support the continued evolution of this innovative and transformational technology, which is set to benefit future generations.
6) Out with the old, in with the new.
Bitcoin has led the way so far with its domination of the cryptocurrency market and it may be the most recognised cryptocurrency currently, nevertheless this does not mean this is the best or only crypto-investment opportunity worth considering in today’s financial climate. Investors today who are looking for the big returns must, therefore, expand their horizons by investing in alternative “alt-coins” such as Ethereum and Litecoin, two very promising cryptocurrencies which are expected to prosper in 2018.
Are you ready to find out the next cryptocurrency to invest in? Well, let’s get started.
Best cryptocurrency to Invest in 2018:
If somehow, you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the biggest cryptocurrency — it currently has a 40% share in the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates in the market. So, if Bitcoin continues to increase like it did in 2017, then investing in Bitcoin might be a good idea for 2018.The price of 1 Bitcoin has gone from around $76 (07.09.13) to as high as $20,000 in December 2017. But after Bitcoin reached its highest point in December, the price of Bitcoin dropped to around $6000 in February 2018. However, things are looking up as the year slowly comes to an end as we see bitcoin conveniently spring back into the limelight.
Towards the end of last year, the price of Ethereum was slightly higher than $720, with a total market cap of around $70 billion. At the beginning of 2018, Ethereum climbed and reached its highest price of $1423 on January 4. At this time, the total market cap for Ethereum was at $138 billion!Ethereum grew by about 3000% in the year 2017 and became the second largest cryptocurrency, placing second behind Bitcoin.
Ripple the third-most valuable cryptocurrency worth $23 billion, also known as XRP, was one of the best performing cryptocurrencies in 2017 with growth of around 36,000%! Yes, you read that right. It grew from almost $0 at the beginning of 2017 and reached $2.4 in December 2017 .
Like all other cryptocurrencies, the price of Ripple has also decreased in 2018 — it is currently set at $0.908 but bound to increase yet again in no time.
Our list of what is the best cryptocurrency to invest in 2018 cannot be complete without Litecoin. Just like Ripple, Litecoin showed great performance in 2017 with a growth of almost 8000%.
Binance coin (BNB)
The Binance coin BNB is currently trading at $14.11 the quarterly price prediction BNB is projected to grow to up $20.14 by the end of 2018 and a price prediction of $36.24 by the end of 2022, definitely BNB is a must by for any one looking for the Best Cryptocurrencies To Invest In Nigeria.
The Vechain coin is one of the most under rated cryptocurrency project, with a combination of their team and their business use case is highly niched and only a few crypto project are headed that direction. VeChain is trying to build a blockchain-based platform which does not only limit itself to the digital world. It can integrate with the actual business ecosystems as well. This will ensure that enterprises will be able to control various functions with the help of this blockchain.
Created by the founder of both Bitshares and Steem, Dan Larimer. EOS was created to be a platform that integrates Dapps and can process over 50,000 confirmations per second. Unlike the Ethereum, EOS was built to solve some of the biggest problems Bitcoin and Ethereum are not equipped to solve which are the development of Dapps and DAOS, this will lead to a tokenized economy worth around $5 billion.
For our bunus tip today I will be enlightening you about the benefits of long-term investment. A long-term investment is one where you expect a cryptocurrency to perform better over a longer period of time. Simple! Normally, the minimum time for long-term investment is 6 months to 1 year. Although, some people plan to hold onto their investments for 5 – 10years plus. It’s up to you how you choose to invest; you can either make your full investment in one go, or you can invest at different times.
The long-term Investment Strategy
– Once again, before investing any amount, you must have a clear idea of what your investment goals are:
Will you sell the cryptocurrency after a certain amount of time or will you sell it when it reaches a certain price?
– Next, you should do some research to decide which cryptocurrencies are best as long-term investments. I recommend that you check for the following:
* Is their technology better than their competitors?
* Do they have a strong team of founders and developers?
* How good is their roadmap/plan?
* Are they solving any real-world problems?
If you really believe in the cryptocurrency you invest in, you should learn to hold on to your investment even when the prices drop. If you ‘panic sell’, then you could lose money and regret selling.
Reasons For Making Long-Term Investments.
(1) Long-term investing makes your life easier as you don’t need to watch the market all the time.
(2) You believe that some cryptocurrencies will give a better return in the long-term.
(3) You truly believe in the future of the cryptocurrency.
While cryptocurrencies can give you huge profits, you must be prepared for one more thing — to lose money. Remember, your predictions won’t always be right! Nobody truly knows what is going to happen to the price of a cryptocurrency, or any other investment.
Do you know what most of the expert cryptocurrency investors say? You should only invest money that you are not afraid to lose. It’s great advice, so always remember it!
So, this is the end of our Best Cryptocurrency to Invest in 2018 guide. I hope that youknow now which investment strategy will work best for you, and that you have a good understanding of what makes a good investment. Which of the cryptocurrencies I mentioned is your favorite?