Cryptocurrency has been swelling in popularity as more and more people learn how to trade. The question is, which cryptocurrency is best to invest in?
Investing in prime cryptocurrencies (well, Bitcoin to be exact) can be quite hard as of the moment. Due to the market saturation and more and more people buying and selling Bitcoin plus the future of Bitcoin and its public perception being a bit hazy, it’s hard to directly answer if Bitcoin is something to invest in.
One thing, however, is that there are other cryptocurrencies in existence that could be good investment choices. These are generally called alt coins. There are thousands out there so picking out the perfect one might be quite hard.
Cryptocurrency investing VS trading
Investing is different from trading. Investing mostly deals with the fundamentals of the cryptocurrency or coin. Most investors are in it for the long run thus willing to take losses short term and just ride them out.
Trading, on the other hand, can be quite short-term. Depending on the trader, the cryptocurrencies or coins are bought and sold in a small timeframe which could be in a matter of just a couple of seconds.
What are Alt coins?
Alt coins or alternative coins are basically cryptocurrencies aside from Bitcoin. Most of the altcoins pride themselves in offering different capabilities separate from Bitcoin. As of the moment, there are around 9,000 cryptocurrencies around.
For those that want to check the performance of the altcoins, checking out a crypto wallet or trading platform or both like Binance can be a convenient way of finding out which altcoins perform well. It is important to note, however, that not all altcoins are good investments.
What are the best alt coins?
There are five different altcoins that generally perform really well and can be good cryptocurrencies to invest or trade in. The altcoins each have their own properties and every one of them perform differently as well.
Basically, each altcoin has their individual purpose. While some altcoins were created for specific functions, other altcoins were created almost entirely for trading like Dogecoin. Before investing in a specific cryptocurrency, it is important to do research on whether it is a tradable cryptocurrency.
It is also important to use the right indicators when trading cryptocurrencies. RSI and Bollinger Bands are two different indicators that are quite useful when trading. Although different indicators might work better for different people, these two are good indicators even for beginners.
The risk of crypto trading includes the owners’ devices being hacked. While cryptocurrency itself can’t be hacked, the crypto wallet, on the other hand, can be hacked. In order to protect a crypto wallet, it is important to protect the computer or device used to access the cryptocurrency itself. Using antivirus software like Norton or McAfee is a good way to provide additional protection to the device itself.