Choosing Which Cryptocurrency to Buy: 3 Easy Tips
It’s not simple to answer, “Which cryptocurrency should I buy?” Finding a cryptocurrency that meets your needs might be challenging because there are hundreds of them, each with its own distinctive characteristics and future goals. This is especially true if you are unfamiliar with blockchain technology. Here are three quick ideas to assist you in understanding things and choosing which cryptocurrency to purchase.
1) Why do you intend to buy cryptocurrencies?
Because I believe it’s a brilliant opportunity to diversify my investment portfolio, learn about cutting-edge technology, and make some money, I am considering investing in cryptocurrencies.
Ethereum should be valued at at least $10,000, and Bitcoin should be worth at least $25,000 by 2025, in my opinion. I will put 10% of my available money into Ethereum and Bitcoin. I’ll put another 10% into both cryptocurrencies if their combined value exceeds my investments after five years. Consequently, I must invest 20% of my money in each cryptocurrency.
Therefore, if Bitcoin is worth $50,000 and Ethereum is worth $20,000, I would invest 20% ($4000) in Bitcoin and 20% ($4000) in Ethereum.
What will the price of Ethereum be in 2025? Although it is hard to predict the price of Ethereum in 2025, we can use the Coindesk Ether Price online calculator. The Coindesk calculator uses Metcalfe’s rule, which states that a network’s value is related to the square of the number of users on that network and forecasts that the price of Ethereum will rise exponentially as more people join. Based on anticipated growth rates, it provides a price estimate for the future.
The expected ETH price ranges from $200 to $50000. The lowest predicted ETH price is $200!However, this does not imply that you should buy ETH with a debit card, with all your money! Remember that investing in cryptocurrencies has no assurances and offers no safety nets. Always stay focused, be cautious, and only invest what you can afford to lose! Research before purchasing; learn what these currencies accomplish and who supports them.
There may be coins that have yet to be created. Decide how much risk you are willing to accept after determining which ones truly give benefit, which are just another killer speculative bubble, and which carry a promise for the future. Those original 10% bets might result in 100x gains or a 9x return on investment if Ethereum does reach $1 million per token in 2025.
2) Establish a budget
The decision to purchase cryptocurrencies is challenging. Should you buy Ethereum instantly or Bitcoin? What will the price of Ethereum be in 2025? You should consider all of these issues before making a purchase. How much money you have and how much of it you wish to spend should be your priority. Decide what kind of currency to buy after that has been determined. Going with Bitcoin can be ideal if long-term investing is your main objective. Since it has been around since 2009, it has had more time to increase in value.
Additionally, Satoshi Nakamoto, the network’s creator, hasn’t yet revealed who he is, so it’s unclear who would take over if he ever vanishes from view. The value of Ethereum in 2025 is a crucial question because the coin’s price depends on people’s expectations for its growth rate. This growth rate may exponentially expand as additional investors enter the market.
According to specific predictions, Bitcoin will lose market share to Ethereum by 2030, making Ethereum a more valuable investment over Bitcoin over the long term. These projections, according to some, are exaggerated, and they contend that most crypto experts ignore the sheer number of coins that exist in addition to Bitcoin and Ethereum. Even though they are frequently ignored, other currencies like Litecoin and Ripple are attractive options for people with little starting capital due to their low costs.
Additionally, compared to Bitcoin, those two tokens gain from having more reliable corporate sponsors. Even the most experienced investor finds it challenging to keep up with the daily release of new cryptocurrencies! Consider using a debit card to purchase Bitcoin in this scenario. In this way, you can use all the coins without worrying about high transaction costs.
3) Plan how you’ll keep your investment.
You first need to understand the distinction between cold and hot storage to decide how you will store your investment. Any offline wallet or hardware wallet not linked to the internet is called “cold storage,” While it may be more secure, it is also far less practical.
Any online wallet or exchange that is always online is referred to as “hot storage,” which facilitates daily transactions but poses a more significant risk of hacking. Additionally, consider the type of cryptocurrency you wish to purchase: are you interested in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), or a different kind of cryptocurrency? The wallet that best suits your needs can then be determined by researching the many types of wallets available for keeping these currencies.
If you’re considering another kind of money, like Monero (XMR), you must find out where it trades on an exchange and see if you can buy it with US dollars. It’s also crucial to remember that buying fractions of coins can save money on fees as you wait for those coins to increase in value if your intention is long-term investing. The last stage is determining how much to purchase once you’ve decided which coin(s) to invest in. Because the market is unstable and frequently experiences downturns, investors typically only finance 10% to 20% of their assets when purchasing cryptocurrencies as an investment.
There isn’t a correct answer because everyone has different reasons for investing, making it challenging to decide which cryptocurrency to acquire. But everyone may agree that conducting your research is crucial before making any investments. Before making a decision, research the firm and check out the forums!