How to Invest in Cryptocurrency? Best Ways to Invest in Crypto in 2020
After the Bitcoin boom in 2017, an idea to invest in cryptocurrency in 2020 doesn’t sound that weird. Nevertheless, some people still afraid to buy crypto today. We’ve collected useful tips to show that investments in cryptocurrency are not that scary as they seem to be.
Invest in Cryptocurrency: Basics
Before you invest in crypto, just a quick reminder of what cryptocurrency actually is. A cryptocurrency (coin and token) is an encrypted digital asset that operates as a medium of exchange. Both tokens and coins are digital assets that can be traded on crypto exchanges. The differences between them start when we dive deeper into definitions.
In short terms, coins are the virtual equivalent of traditional money, except they are not regulated by anybody. Storing the value over time, usually, but not always coins are tied up to a particular blockchain like BTC is for bitcoin, ETH is for the Ethereum blockchain, EOS is for the EOS distributed ledger and so on. Hosted on another blockchain, tokens are usually aimed at performing as an inner payment method within a particular crypto project.
Whether you are an experienced investor or just a beginner, the first thing you need to do when investing in cryptos is to choose the right place to buy and store crypto. There is a wide range of trusted crypto platforms to acquire cryptocurrency in 2020. It can be either trusted cryptocurrency exchanges like Binance, Huobi, HitBTC, and others or fast instant exchange platforms like Changelly to purchase cryptocurrency with your banking card swiftly and safely. A secure way to store your digital assets offers such services as multicurrency digital wallet Exodus, Infinito Wallet, Freewallet and so on.
Is It Profitable to Invest in Cryptocurrency in 2020?
The greatest trust among traders and crypto-investors is in the use of digital currencies, presented in the top ten of the Coinmarketcap rating. This happens due to various factors, and the most important among them are:
stable rate growth,
prospects for further development of the ecosystem,
the reputation of developers.
So it’s can be really profitable to invest in top-10 cryptocurrencies with minimal risks in 2020.
The Most Popular Cryptocurrency Portfolios
Sophisticated investors know that investing in one cryptocurrency will not pave you a road to billions. The key answer here is diversification which means you invest in several cryptocurrencies to improve your prospects of benefit. Using a wide variety of tools to track the slightest crypto market movements and monitor the investments, experienced investors usually prefer to work with cryptocurrency portfolios which allow you to store your digital assets in one place for thoughtful analysis. The following crypto portfolios let you sync your digital wallets and exchanges to track your investments.
Being a global crypto market data provider, CryptoCompare proposed its portfolio tracking app two years ago. The platform suits perfectly for beginners as CryptoCompare offers a step-by-step tutorial on crypto portfolio creation alongside native UX and UI.
This crypto portfolio suits both professional and novice investors. Being integrated with the biggest exchanges and wallets, Cointracker allows you to sync your crypto wallets for comprehensive analysis and monitoring.
Blockfolio lets you monitor your cryptocurrency investments on the go as there is only a mobile application. Yet, it can be connected with your favorite messaging apps so you stay updated on the latest news and pricing.
What Are the Best Coins to Invest in 2020?
Besides the Bitcoin investments, there are a lot of successful projects that enriched dareful crypto enthusiasts at the right time
#1. Tezos (XTZ)
The initial price of Tezos coin during the ICO in July 2017 was 1 XTZ = $0.47. The highest price was fixed in December of that year and reached $10.55 per 1 XTZ, which means people who risked investing in Tezos have enlarged their profit by 20 times.
#2. EOS (EOS)
Dan Larimer’s delegated proof-of-stake (DPoS) blockchain, EOS, has gathered $4 billion during the ICO which made EOS the most expensive ICO so far. In July 2017, 1EOS was equal to $0.99. The highest EOS price was registered at the end of April 2018 – a month before the official mainnet launch. Back at that time, the price reached $22.89 for 1EOS. As a result, such an investment returned in almost 2000% of the profit.
It also makes sense to invest in native crypto exchange tokens, as it may enhance opportunities for the benefit.
#3. Binance Coin (BNB)
All good things come to those who wait. Launched in July 2017 with an initial price of $0,10, the peak price of Binance Coin was in June 2019 with $39.57 for 1 BNB. Two years of holding = 388 times of profit.
#4. Huobi Token (HT)
Following the trend, Singaporean crypto exchange, Huobi, launched its Huobi Token (HT) in 2018. In February 2018, the price of HT, according to COIN360 historical data, was $1,43. Five months later the price rose to $6.10 per one HT.
Safe Crypto Investment Options
There is a wide range of cheap coins that can help you to make some profit. Here is a list:
#1. Stellar (XLM)
Stellar (XLM) is a blockchain platform for transferring digital assets worldwide. The purpose of the creation was to provide users with the ability to make payments quickly, cheaply and safely. It was launched as a competitor to Ripple in 2014 by one of the founders of XRP, Jed McCaleb.
Cryptocurrency Stellar was created as a direct competitor to Ripple. However, compared to it, this cryptocurrency is truly decentralized, providing an opportunity for community members to participate in the life of the project.
#2. Chainlink (LINK)
Chainlink was launched in June 2017 by SmartContract fintech company from San Francisco and is described by developers as cross-platform blockchain software designed to connect smart contracts with external data sources such as data channels, web APIs, etc.
Since ChainLink is one of the few oracle development projects today, it can easily become an industry leader for years to come.
#3. Crypto.com (MCO) / (CRO)
Crypto.com Chain is a high-performance native blockchain solution that will contribute to the popularization of cryptocurrencies worldwide, providing instant transfers of coins and tokens using their products. Inside the Crypto.com ecosystem, there are its own tokens CRO and MCO.
Crypto.com is one of the most popular projects in the industry since the beginning of 2019.
Should I Invest in Cryptocurrency?
Investing in crypto as well as investing in any assets is a risky deal. Once you’ve decided to invest in cryptocurrency, there are some useful tips to enhance the chances of profit:
1) Study basic definitions and research the market
Your dreams of becoming a crypto millionaire don’t work until you do. By researching and studying, you will not just broaden your vocabulary, but also be able to understand the market situation and therefore make wiser investing decisions.
2) Do not invest all your savings
Be ready to surprise as the cryptocurrency market is very unpredictable due to its volatile nature. Cryptocurrency price changes every day and sometimes it changes dramatically. Start to invest in crypto the amount of money you are not afraid to lose.
3) Be patient
Sometimes to make a profit you need to wait a long time. There is even a special word for those who hold cryptos and wait for the right time for selling or buying it – hodlers. The best example of a lucky hodler situation is to buy BTC at $3,466 in February 2019,
and sell it six months later with a considerable profit.
4) Everyday I’m practicing
The best answer to the question above is practice. If your goal is to make successful cryptocurrency investments, then be prepared to spend time on everyday practice. After all, to make your money work for you, some actions should be taken.
Enhancing not only your vocabulary but also all available tools to search, monitor, and analyze the market, will surely give you an advantage over other investors who use just several platforms for tracking their investments.
Invest or not to invest – is not a question here, but a choice. If you are ready to learn, wait and risk, then investing in cryptocurrency will probably give you profit. To bring forward this day, Changelly might help you to start as swiftly and safely as we can. Invest in cryptocurrency with your bank card following the best rates on the market.