Investing in Cryptocurrency today is not new to many people. But how to invest to bring profit, not everyone knows. Because there are many different coins on the market. Followed by the difficulty in choosing. So what criteria should be used to choose the coins to invest in ? Please follow the article below to make an informed choice for yourself.
Should invest in coins?
With the number of coins currently on the market, it can be seen that its trend is growing. The advantage of these coins is that they can be used in all geographies. Therefore, the potential for growth and the trend of coin usage is increasing. Investing in this market is also a good choice for the future.
With outstanding growth potential, the coins to invest in bring investors many benefits such as:
- High profit potential. Cryptocurrencies have very high profit margins. You can trade in these cryptocurrencies by opening a trading account on brokers. Like what you would do in the forex and stock markets. However, volatility is more predictable and relatively lower than in stocks and forex.
- Coins cannot be faked. The significant benefit of cryptocurrencies is that they cannot be copied. Creating fake copies of cryptocurrencies is almost impossible. And it is this point that increases their demand even more.
- Cryptocurrencies are a thriving investment. By many major monetary institutions in the world began to accept. And plan to invest in new payment solutions.
Is Crypto (cryptocurrency) investment safe?
“Cryptocurrency investing is not about watching the price, the chart goes up and down, it has to see what problems this coin can solve, how does the blockchain community evaluate it, who is the team behind it. Whether it can solve problems in life and is there anything special compared to competitors? That's what crypto investors and NFTs should care about," said Dinh Viet Hung, Chairman of VIC Partners, in CTO Talks on July 30 on VnExpress .
Dinh Viet Hung's share is very true to today's reality, any coin born is associated with a certain function and task. Coin is digital currency and its sole purpose is to support payment problem. Whether a coin is safe, reputable and quality depends on its popularity in the community and the problem-solving ability that digital currency brings.
The time of 2020 - 2021 can be said that if investing in finance, this is no longer a golden time for traders, but for the field of investing in technology, this is a historic opportunity that investors have experienced. Investors should hold the coin to wait for the opportunity to break out.
What are the criteria to choose the coins to invest in?
Criteria to choose coins to invest in
To choose the coins to invest in, it is necessary to evaluate based on many criteria. Let's explore those criteria right here:
Creditial
This is the most important factor that any investor must pay attention to. The more liquid an asset is, the easier it is to exchange it for cash or another asset without reducing or losing its value.
In particular, the amount of coins in circulation, trading volume, market capitalization, and community support are important factors that determine liquidity. The liquidity of a coin gives investors more flexibility in their decisions.
Technology
Every crypto project is very technology focused. A coin that has the potential to have fast transaction speeds and block times. At the same time, the mining algorithm must be friendly, secure, and highly anonymous.
Blockchain technology allows storing a large amount of transaction data, highly decentralized. And no individual or organization can intervene to change the data. Thanks to that, everything will become transparent, all coin holders can participate in proposing or voting on major changes in the cryptocurrency system they participate in.
Intrinsic value
The intrinsic value of the coins you should invest in is the most important criterion you should aim for.
The intrinsic value of a coin includes its technology, engineering, and applicability. In addition, the development team are the key decision makers for the existence of a coin. This is also a factor that investors care about.
Number of people participating in the investment
The number of participants investing fairly accurately reflects the potential of a coin. If you want to check if a certain coin is attracting a large amount of capital, you must monitor the market capitalization rate. And based on this statistic to evaluate the potential level of a certain coin.
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Coins to invest in today's market
Among the cryptocurrencies available in the market, here are the top soins to invest in:
Bitcoin – BTC
Even with the arrival of new cryptocurrencies in the market, Bitcoin still accounts for 40% of the total market capitalization. Although the dominance index is no longer overwhelming, there is still no coin that can replace Bitcoin.
In particular, Bitcoin is also the most widely used cryptocurrency in global payment systems. Currently, there are hundreds of thousands of businesses that accept customers to pay in Bitcoin.
Which coins are very potential?
Ethereum - ETH
Over the years, ETH has maintained its position as the most powerful coin in the market, second only to Bitcoin. This coin is backed by a powerful trading platform.
Accordingly, the ecosystem of Ethereum is growing more and more diverse. Investing in ETH can be considered a relatively safe decision. Because after many years, this currency still retains its value, being applied in many payment systems around the world.
Binance coin - BNB
BNB is a coin that has grown rapidly in a short time thanks to the support of Binance. Binance is leading the market in terms of trading value and number of listed cryptocurrencies. With the number of users joining the exchange constantly increasing.
Binance's ecosystem is constantly expanding. BNB coin has had a tremendous growth. It only stands for BTC and ETH.
Above, we have updated the criteria for you to choose the coins you should invest in. And some prominent coins are getting the attention of many people. Hopefully, with the above sharing, you will get the right judgment on this path.
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