What you need to know when investing in cryptocurrencies in 2019
It’s 2019 and cryptocurrencies are on the front pages of numerous tech and financial publications regardless of their substantial volatility. The massive spike in interest amongst the general public will lead to even more investing in crypto this year. That massive interest spike in interest as well as the multiple new entrants to the cryptocurrency market also makes investing a bit more difficult in 2019 compared to what it was ten years ago when just Bitcoin existed. With the new ones springing up like mushrooms after the rain, serious research is needed to ensure the safety of existing funds and a possibility to multiply them.
Which cryptocurrencies should you look at?
While you are swimming in the sea of different cryptocurrencies available on the market today, it’s tough to to figure out where and how to allocate your funds. Aside from Bitcoin, which is still the most popular cryptocurrency, here are a few others to consider.
The previous year was rough Ethereum. Maybe 2019 will be kinder to this highly popular cryptocurrency? Experts say that the price and reputation of this currency are likely to increase this year. Additionally, many organizations are focusing their attention on Ethereum and building products on top of it.
EOS is the next currency to watch after Ethereum. It’s considered to be the next most technologically advanced platform. EOS is highly flexible and doesn’t charge gas fees. You can’t mine this coin. Specially chosen users produce it.
The third currency, which may be worth watching, is Ripple. Today it’s the second largest currency by market cap after BTC. The currency has initially been invented for the use of financial institutions rather than single use. It’s used to improve cross-border financial transactions.
Today, the cryptocurrency seems to be getting big support from corporate investors.
Instead of focusing on one cryptocurrency, many investors choose to take advantage of cryptocurrency index funds. Having professionals find the right balance between different cryptocurrency investments is an appealing choice. This can be appealing for investors without sufficient trading skills or the time to learn about all the innovations in the cryptocurrency realm.
What are some tips when investing in cryptocurrencies in 2019?
Here are a few tips to help you make educated investment decisions this year.
1. Watch new currencies
When a new currency appears on the market, it usually shows a spike in cost. The spike is often followed by a dump so you need to act fast. In order to catch the short price spike period, you need to watch the market closely. Check out IDEX to find such new unpopular coins.
2. Track corporate news
Experienced traders know that such corporate news as new partnerships or introduction of new technologies can spike the price of cryptocurrencies. If you catch the moment, you can buy the coins cheap and sell them for a higher price shortly after.
3. Do your homework
Numerous cryptocurrencies are appearing on the market every day. You never know which one of them will make you a fortune. Make sure you know what’s going on in the cryptocurrency world by reading all the top news.
Coindesk – a must-read. Contains important information about cryptocurrencies, mining, trading, investing, and more.
The Block – an excellent source of news and analysis on crypto and blockchain.
Bitcoin News – one of the biggest and most informative cryptocurrency news sites.
Cryptoncy – latest news about cryptocurrency market and exchange information.
Cointelegraph – another useful news website, which talks about new cryptocurrency trends.
News BTC – technical analysis and forecasts for Bitcoin and Altcoin.
4. Take advantage of ICOs
A golden rule of cryptocurrency investment is: if you don’t know what to do next, opt for ICOs (Initial Coin Offerings). It’s the simplest and fastest way to earn money with crypto. That being said, you still need to do your research before you invest an ICO. I’d recommend listening to our podcast episode with the Managing Editor at ICO Ranker before doing anything else.
Overall, 2019 cryptocurrency trends aren’t drastically different from 2018. With the right research and a little luck, you can be in the game.