What is the Best Cryptocurrency to Invest in Right Now?
If you’ve been thinking about investing some of your money into cryptocurrency, but have no idea where to start, then this post is for you.
Today I want to break it down by talking about two cryptocurrencies you might want to consider buying.
What is Cryptocurrency?
Cryptocurrency started off as this whole idea of being a decentralized worldwide digital currency. What that means is now instead of having to convert your dollars into ringgits when you go from Canada to Malaysia, you can simply carry around your wealth as cryptocurrency.
In fact, cryptocurrency has transformed into something a whole lot more than that. Obviously you still have the currency portion, but with cryptocurrency, you don’t have to worry about the currency exchange. One bitcoin in the United States is the same as one bitcoin in Canada, and the same as one bitcoin in Mexico, and the same as one bitcoin in Malaysia, and the same as one bitcoin in Japan. I think you get the point.
What is Blockchain?
There’s now even more to cryptocurrency than just being able to make transactions. The blockchain, or the technology behind cryptocurrency, allows you to do so much more. It allows you to create defy or decentralize finance. You can create a whole new industry of finance on the blockchain. You can do transactions on the blockchain. You can store data on the blockchain. In other words, the blockchain has opened up a whole new world of the internet, because it’s a brand new technology that really hasn’t been cultivated yet.
Now if you’re one of those people who like to do thorough research before investing in anything (and that’s really the only right way of going about this), you can check out this exclusive VIP video training on the latest crypto secrets.
That way you can get an idea of what you should believe and do, so you can make a better decision for yourself. It is good to hear from opposing viewpoints. That way you can make the best decision for yourself.
But what I want to do in this post is actually talk about a couple of different cryptocurrencies. If you’re thinking about actually buying cryptocurrency and want to know which one you should go for first, you might want to read this post until the end.
How to Decide Which Cryptocurrency to Buy?
There’s actually no right or wrong cryptocurrency to invest. It all depends on your circumstances and intention. It’s the same as investing in stocks. What’s a good stock pick for me might not be a good stock pick for you, because our goals will be different or our timelines might be different. There are so many things to consider, such as how long you plan on holding the stock. If you plan on holding for two years and I plan on holding for 20 years, our choices are going to be different. That’s because what happens in six months or two years is going to be very different from what happens over 20 years. That’s why I don’t like the idea of giving exact stock picks.
The same goes for cryptocurrencies. There’s a lot more to picking cryptocurrencies than just picking the right one. But in this post, I want to do something a little bit different. I do want to talk about a couple of different cryptocurrencies that you might want to consider buying, especially if you’re starting off, because these two cryptocurrencies can give you exposure to the broader cryptocurrency market. They’ll also give you different exposures to cryptocurrency on the blockchain side and the property side.
There are thousands and thousands of different cryptocurrencies out there. Some of them are complete crap, while some of them are the meme tokens, like the Dogecoin and Fluffy Coin. And then you have some that have more technology and more use behind them. Now, obviously some of these cryptocurrencies are way more speculative than others, where people are just throwing their money into these meme coins or these speculative coins. They’re hoping they can double their money very quickly. They’re hoping to see big gains because it’s kind of like gambling.
On the other hand, you have a lot of coins where it’s essentially like gambling. People have no idea what the coin is. They’re just hoping that it’s going to get some traction, and that they bought it early enough. That way they can see a massive run-up and sell their coin for ten times the price they bought it for. You do see that happen, and sometimes it can be right and you can make a lot of money. But other times, it can be wrong and you lose all your money.
So if you’re just starting off, you don’t want to be in the business of gambling. You don’t want to be in the business of speculating. I’m not a speculator either. But there are places that you might want to consider starting with, especially if you’re just starting off. That way you can get some broader exposure to the cryptocurrency market.
How to Deal With the Risks Involved?
Now obviously, investing has risks. You are never guaranteed to make money when you invest. You might even lose money. So always do your own due diligence and never blindly listen to a random guy on Youtube or another social media platform. The thing that you have to understand about cryptocurrency more specifically is that cryptocurrency is way more volatile than pretty much any other asset class. This is because it is a newer asset class. Although the size and the number of dollars in cryptocurrency is growing, it’s still pretty far away from the amount of dollars in the stock market, and the amount of dollars in the real estate market. So you have to understand that, since it’s smaller, you can see a whole lot more volatility.
This brings in a whole other fair share of risks when you invest your money in cryptocurrency, not to mention the fact that you also have a lot of speculation in cryptocurrency. They also have a lot of debt in cryptocurrency. People are refinancing their homes or maxing out their credit cards and putting money into cryptocurrency. Because of these things, you can see a lot of wild swings in cryptocurrency. So you’ve got to be aware of a couple things here.
· Cryptocurrency is speculative.
· You can lose money in cryptocurrency.
· You could see a massive crash in cryptocurrency.
Now that being said, even though we saw a massive crash in the dot-com market in 2001, that doesn’t mean that the internet went away. The internet is thriving today. We also saw a 2008 real estate meltdown. That doesn’t mean that real estate doesn’t exist today. Real estate is booming today. So what you have to understand is you are just going to see a lot of volatility in the cryptocurrency market, but that doesn’t mean it’s going to go away. That’s just one of the prices that you have to pay for trying to get into cryptocurrency as one of the earlier adopters. Of course you might say that early adopters are those who bought cryptocurrency back in 2015 and 2016, but relative to maybe where cryptocurrency will be in a decade, you’ll still be counted among the early adopters if you buy cryptocurrency today.
The First Cryptocurrency You Should Invest In
The first cryptocurrency that you want to consider owning is bitcoin. Reason why you want to consider owning bitcoin is because it’s kind of like the big daddy when it comes to cryptocurrency. Originally when people thought about bitcoin, they thought about using bitcoin as a currency, meaning as a means of exchange. So if I want to go shopping, I can pay for my order with bitcoin. But nowadays, people look at bitcoin very differently than they used to.
Now people look at bitcoin like property. So bitcoin is unique. There is a maximum of 21 million bitcoins that can be mined, so that’s it. There are 21 million potential bitcoins. After you hit 21 million bitcoins, that’s it. Everyone will be fighting to own the same number of bitcoins. This is why people now consider bitcoin not necessarily as a currency, but more as property.
So if you can own bitcoin in a world where more and more people want to own bitcoin, and there’s a limited supply of bitcoin, it’ll be definitely beneficial for you. It’s going to be more beneficial for you to actually own the bitcoin rather than just spending it. If you believe that bitcoin is going to go up in value, why would you want to spend your bitcoin to go and buy some candy when you can just hold on to your bitcoin? Tomorrow you might be able to buy two candy bars, right?
So bitcoin is more like a property than it is a currency. But the value that bitcoin has can be explained in a couple of different ways. If you want to create more bitcoin, it has to be mined, and it has to be mined through something called proof of work. You can learn more about this in this exclusive VIP video training on the latest crypto secrets.
If you believe that the world is going to be becoming more digital and the people are going to want to own property digitally, then you would be of the belief that bitcoin is going to be more valuable in the future. More people are going to want to own this type of digital property. So if you can get your hands on some of these 21 million bitcoins, it’s going to become more and more scarce, because bitcoin is a deflationary asset.
Now before you get too excited about investing in bitcoin, I want to remind you that if you do not plan or have the willingness to hold on to bitcoin for 10 years, you probably shouldn’t own bitcoin for even 10 minutes. This is because there are a lot of people who are just trying to look at bitcoin and these cryptocurrencies as a way to get rich quick. They are speculating and just hoping that they can buy this and flip it in two weeks or in two hours. But if that’s what you’re looking for, then you have to understand that there are a lot of risks that you carry with that. Firstly, you’re just speculating. Secondly, you’re going to see a lot of volatility. You can see huge spikes and crashes with bitcoin. You’re going to see a lot of pain, as a lot of different regulations are going to happen with different countries. All these things are going to affect what’s going to happen with bitcoin over the next decade.
But if you believe in the value of digital property, if you believe in the value of the internet and what blockchain can do, then this is something that you may want to consider owning for the long term.
The Second Cryptocurrency You Should Invest In
The second cryptocurrency that you may want to consider buying is ethereum. Ethereum works very differently than bitcoin, because there’s a very different technology behind ethereum than bitcoin. The blockchain behind ethereum has so many more uses that bitcoin doesn’t have.
The first thing that I want to mention regarding ethereum versus bitcoin is that ethereum has really no limit to how much of it can be created. Now there are annual limits to how much ethereum can be created every year. The supply of ethereum keeps going up. But that’s very different than bitcoin, which is why people don’t look at ethereum as the same type of investment as bitcoin. People look at bitcoin like a property. But with ethereum, you’re really investing in the technology, which allows ethereum to do so many other things.
The way that you produce ethereum is also very different than bitcoin. Bitcoin is through the proof of work model, which is where you have to do the actual mining of bitcoin. With ethereum, it used to be like that. It used to be a proof of work model, but then you had ethereum get revamped and remodeled, and now ethereum follows something called the proof of stake method. You can learn more about this method in this exclusive VIP video training on the latest crypto secrets.
