The number of coins and tokens represented in the cryptocurrency market is already approaching 20,000. The success stories of crypto investors are not so numerous, but they make a lasting impression. With a deeper dive into the topic of investing in cryptocurrency, it turns out that not everything is so simple.
First of all, you need to study the market yourself. Research includes fundamental and technical analysis.
Fundamental analysis implies an assessment of the reliability of the project, further prospects for its development, and the state of the market. This is especially important when it comes to new, rapidly growing and undervalued currencies.
The project must have a technical description, which indicates the principle of operation of the cryptocurrency, its purpose, a description of the technology and the technical base of the project.
It is also important to find out who is behind the launch of the project, how experienced and competent the people who are on the team are.
Review the project roadmap. This document sets out the goals of the project, the timing and ways of their implementation. It is especially important to find out how it is planned to increase the value of the asset.
Technical analysis is used to predict the price movement, select the entry point to the market and trade goals. Using technical methods, it is quite possible to calculate at what price level the XMR to USDT exchange will bring the maximum profit. For this purpose, price charts are studied at different time intervals.
Technical analysis works quite well in established markets that are less sensitive to news releases.
Which coin to choose for long-term investments
Bitcoin (BTC) has been the undisputed leader of the cryptocurrency market for many years. Moreover, investments in cryptocurrency most often mean the purchase of BTS. It occupies over 60% of the market and is increasingly integrated into the economy. The coin is already used as a means of payment online and offline.
However, the high price of the coin and its unprecedented volatility make its practical application very difficult. Bitcoin was initially positioned as digital gold and, by analogy with physical gold, is gradually becoming a safer store of wealth than a currency.
The safety of Bitcoin is relative enough, as it is in the process of legalization. Any news about the legalization, possible ban or control of the circulation of Bitcoin is immediately displayed on its price. The leader’s price fluctuations immediately set the entire market in motion.
And yet, compared to all other cryptocurrencies, Bitcoin is the most efficient and low-risk asset.
Ethereum consistently ranks second in the ranking of the largest cryptocurrencies, but lags far behind Bitcoin in all respects. Ethereum is not only a cryptocurrency, but also a blockchain platform for creating decentralized applications and smart contracts.
As the popularity of the platform has grown, Ethereum has faced a number of technical challenges. Now the blockchain is in the process of a massive update, which is aimed at improving the stability, security and scalability of the network.
If everything goes smoothly, Ethereum will start to rise. The most optimistic analysts expect a two-fold growth by the end of the current year.
The Cardano blockchain is functionally similar to Ethereum, but uses a more energy efficient consensus mechanism. In addition, the platform works much faster, and blockchain fees are much lower than those of its main competitor.
The further development of projects competing with Ethereum largely depends on how quickly and how seamlessly the Merge update ends. However, the developers are set to play for a long time and improve their brainchild without too much haste.
Litecoin (LTC) was originally positioned as digital silver. Technologically, the coin is one of the forks of Bitcoin. Litecoin’s fees are significantly lower and the transaction processing speed is faster compared to its famous big brother. It is also important that LTC is also quickly integrating into the real economy.
Now Litecoin is trading a little below $60 and the low price of the coin at the moment is its advantage.
The project initially aims to cooperate with large financial institutions to improve the existing system. The interest of reputable companies in the further development of the project gives grounds for optimism. The USDT to XRP exchange is available on many major exchanges and buying coins is as easy as the rest of the above list.