Blog > Trading Tips > Articles
What to Look For When Deciding the Best Cryptocurrency to Invest in
Table of Contents
When you think about investment, what’s the first thing that comes to mind?
It’s probably profit. Cold, hard cash.
Investors naturally want to turn a profit. That’s the whole reason to invest in the first place.
But to be a profitable you have to be smart. Sorting the golden opportunities from the duds is essential.
There are large returns to be had in cryptocurrency investing, but you do have to be careful. Those investment gems you are looking for are hidden among an array of less-than-stellar projects. After all, not every startup can be successful.
So what should you be looking for when deciding what's the best cryptocurrency to invest in?
Sadly we don't have a crypto crystal ball, but we do know that applying fundamental analysis to every potential investment is a solid place to start.
There is no formula for the "best" cryptocurrency to invest in, but there are quite a few options you can consider.
Carry out your own research and look critically at every opportunity you see. What follows are a few suggestions of projects that have been popular investments for crypto traders in 2019.
Bitcoin is the most well known cryptocurrency by far - it dominates the crypto markets. Enthusiasts would argue that Bitcoin is the best cryptocurrency to invest in, but that is always up for debate.
If the crypto markets are going up, Bitcoin will usually be leading the charge. Cryptocurrency enthusiasts often speculate that one day Bitcoin will lose its power as the leader of the pack, but for now, there doesn’t seem to be any indication that this will happen.
Bitcoin is the gold standard of cryptocurrency. It's proven, reliable and has a huge community behind it supporting development and maintaining the network.
While other cryptocurrencies are striving to be something, Bitcoin is already doing it. Bitcoin is a global payment method that allows you to send money anywhere, anytime with low fees.
Bitcoin the starting point for most traders and is generally seen as a sound investment by people who believe in the long-term prospects of crypto and blockchain.
Bitcoin might be the most well known crypto, but Ethereum is hot on its tail. Ethereum is a blockchain platform that is largely responsible for the recent progression of cryptocurrency.
Ethereum popularized smart contracts and initial coin offerings, massively changing the crypto landscape throughout 2017.
Today, Ethereum remains a powerhouse of cryptocurrency. There are other platforms competing in the space, but Ethereum continues to stand strong and as one of the major cryptocurrencies by market cap, many traders have Ethereum in their portfolios.
Litecoin is a modified, and some would say improved, version of Bitcoin. Litecoin is faster than Bitcoin for sending payments.
The total supply of Litecoin is also larger than that of Bitcoin. Litecoin has a maximum supply of 84 million, compared to Bitcoin's 21 million.
Many cryptocurrency traders believe that if Bitcoin has a positive future, so does Litecoin. It's been around since 2011, and there is an entire community that believes Litecoin is the future of payments.
Recently Litecoin has partnered with Ultimate Fighting Championship (UFC) to promote the cryptocurrency.
XRP is a cryptocurrency that is native to the Ripple protocol. XRP is a payment method designed for settlement between banks and financial institutions, and it does it well.
Cryptocurrencies will succeed if they can provide real value. XRP payments settle in four seconds, and XRP can handle up to 1,500 transactions per second, which could be very appealing to banks.
XRP remains a popular choice for many traders, and banks seem to be looking at XRP keenly.
Gaming is a huge industry with a lot of potential for crypto. Enjin is using blockchain to take gaming to the next level, by allowing true ownership of in-game assets and making it super simple for developers to build Enjin into their games.
Recently the price of Enjin has soared following an announcement of a partnership between Enjin and Samsung.
Get Protocol (GET)
Ever tried to buy tickets to a sports game, concert or any other event you will know that it can be a painful process.
Get Protocol exists to make the ticket buying process fair again, using blockchain technology to completely eliminate ticket scalpers.
It’s a very real use case.
If you think that the future of payments is mobile, then you're well aligned with Electroneum, a cryptocurrency payment focussed on being accessible.
Electroneum aspires to give access for digital payments to everyone.
Crypto trading can be hard. You may yourself wondering how top traders have a strategy that is so many levels above yours.
Kryll is designed for trading strategy sharing and creation. If you are looking to trade with someone else's strategy, you can rent it with Kryll.
If you’ve got a next level trading game, you can share it on Kryll and generate profits.
It’s a cool concept and could have a bright future.
Businesses use data. A lot of data.
Immutable record keeping is made possible by Zebi. Data can be reliably stored with decentralization which is very valuable to businesses.
Zebi acts as a data gateway, allowing data requesters and data providers to interact in a secure, efficient manner. Zebi is already actively working with a number of large data providers, including the Indian state Andhra Pradesh.
Zebi has recently been featured in the Silicon India’s top 10 Most Promising Blockchain Technology Solution Providers 2019 list.
Securities lending is a huge business in traditional finance, and Lendingblock is bringing securities lending into the cryptocurrency economy.
Lendingblock is built for institutions, hedge funds, asset managers and much more. It allows these big financial hubs to generate higher yields, among other things, through a lending exchange. The LND token plays an integral role in the platform.
QASH is the utility token of Liquid.com, our cryptocurrency exchange. QASH will be rebranding to LQC later this year.
Currently QASH allows Liquid users to pay 50% less on trading fees.
We are also building a Liquid Distributed Ledger (LDL), on which QASH will be the native token.
What are you waiting for?
You should now have an idea of what to look when deciding on the best cryptocurrency to invest in. Go out, do your research and then when you’re ready you can think about investing
Liquid is a great place to begin your investment journey. We are a safe, secure and regulated exchange with your best interests at heart.