As of 2021, around 106 million people in the world use some form of cryptocurrency. You’d have to be living under a rock to not know about this digital form of currency!
But knowing about it and actually investing in it are 2 different things. And you just might feel ready to dip your toes in.
Where should you start though? Which cryptocurrency is best to buy now?
Read on for 4 tips to find out which cryptocurrency is best for you to start investing.
1. DETERMINE HOW MUCH RISK YOU WANT TO TAKE
As with any type of investment, there’s risk involved when you buy cryptocurrency.
If you want to stick to the safe side, Bitcoin is a sure bet. It’s the biggest crypto by far, and the values of all other cryptos are tied into this ones.
If you’re more of a daredevil, then you can pick more obscure crypto. While the risks are huge, the payoff can be as well.
2. CONSIDER ALTCOINS
Altcoins are alternatives to Bitcoin. If you’re wondering, “Which cryptocurrency is best to invest in 2021”, it’s time to jump to the future and think about 2022, 2023, and beyond.
While it can be nice to invest in the cryptocurrency at the forefront of things, there are over 5,000 other choices when you consider altcoins. Some of the most popular ones include Ethereum, Ripple, and Litecoin, all of which aren’t too risky to invest in.
3. CONSIDER YOUR CASH
As a beginner investor, you might not have much money to work with. This can make it hard to break into the world of Bitcoin, where the value of just 1 coin has been tens of thousands of dollars.
While you can buy just a fraction of a bitcoin, you might be better off buying larger quantities of other cryptocurrencies that may have the potential to grow.
4. DIVERSIFY YOUR PROFILE
If you’ve got the cash to do it, we’d highly recommend dabbling in the cryptos you find interesting. Instead of just sinking all your money in one, spread your money out across several currencies. This can extend to fiat currencies in addition to cryptos.
Of course, if you find that cryptocurrency isn’t the best type of investment for you, or you want to diversify even more, there are other investment options. For example, you can always put your money in other stock markets, such as the Japanese one.
WHICH CRYPTOCURRENCY IS BEST FOR YOU?
When it comes to which cryptocurrency is best for you, there’s no right or wrong answer. Instead, you’ll have to think about how much money you want to put in and what risks you want to take.
From there, you can start off with one crypto and once you get familiar with it, you can expand to other ones you find interesting. That way, you won’t have all your eggs in one basket!
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