“Pick A Coin”
Cryptocurrency is still a new “thing” for many, most people I talk to don’t know much about it. Once people find out I work in a software development startup in the cryptocurrency world, the most typical questions that people ask me when we start talking about cryptocurrency is:
What coin should they choose to invest in?
Honestly, I’ve never known how to answer this. Keep in mind that there are more than one thousand types of active crypto that you can invest in.
So, how do people choose from all the available options out there? Do people choose the most popular ones like Bitcoin and Ethereum or a random one? Usually, people say they will invest in Bitcoin just because its the most popular one, especially last year when it peaked. When it comes to bitcoin, I wonder if those who never got the chance to invest in bitcoin when the price was still low, should still invest now. There are others that don’t want to miss out on the next big coin like bitcoin, that made many earn tons of money.
The truth is on many sites and videos that I've seen, and none tell you specific crypto you should invest in. Mainly because cryptocurrency is so volatile and it runs in a market that is active all day.
According to Coin Central, “The bad news: It’s unlikely that any other cryptocurrency will see the same astronomical growth that Bitcoin experienced over the last few years, and impossible to predict it. The good news: There’s still plenty of opportunities to invest in up-and-coming cryptocurrencies that could potentially bring you 10-100x returns. This comes with a heavy note of caution, because as you may know, cryptocurrencies are incredibly volatile.”
Many advise what to research before choosing to invest in one particular coin. The popular advice given on the web is to invest in Initial Coin Offerings (ICO´s), these are startups raising money for their projects. A few weeks ago, I wrote about ICO´s and how this was an excellent initiative for startups and people to invest in tokens on projects that they believe in. Unfortunately, there have been numerous scams surrounding these famous ICO´s.
For example: “Participating in ICOs can be a lucrative trading strategy. If you invested in the NEO crowd sale (at the time the project was called AntShares), your return on investment (ROI) would be ~160,000% currently.” Although this sounds great, it takes time and understanding to research and read a white paper. Not to mention the fact that many are very technical and are not for everyone’s comprehension. It’s important to understand how crucial it is to investigate these ICO´s before investing. Whether it's reading the project information or looking into the developers behind it, before buying into a moment of hype and later being disappointed.
According to software developer and crypto investor Davinci Jeremie, when it comes to what coin to invest in, he believes, Bitcoin is the most secure, its back up by more software. “Get into Bitcoin, Etherum or Litecoin because its well sported. He thinks that choosing a coin has more to do with your strategy. If your plan is buying and holding, he advises sticking with the big names because of its stability and its support. If your strategy is to be active within the market where you're continually looking at the market to make trades, then you get into other alternative coins. Even so, he points out that most exchanges don’t accept cash for altcoins, so having bitcoin is the best option to get to other crypto because it is accepted everywhere.
Whether your thinking of waiting for the next big ICO crowd sale or choosing to buy a more popular coin, the truth is it's up to you to do your research and base it on that, or you can choose to go with your gut. Just remember: Don't invest more than you are willing to lose.
Hope you enjoyed it, feel free to comment.