Become an investor: most promising cryptocurrencies in 2018
Currently, the market capitalization of all cryptocurrencies is exceeding $380 billion. It is a bit lower than the price of Chinese giant Alibaba ($441.62 billion) and twice higher than the price of US-based IBM Corporation ($142.03 billion).
Due to such a demand for virtual money, cryptocurrency specialists believe that coins will outcompete conventional money soon. Therefore, one should think about eligible investment until they are not quite expensive.
Let’s examine the most promising cryptocurrencies for investment in 2018 as well as the reasons encouraging the growth of their price.
Reasons for investing in cryptocurrencies
Experts are still split over cryptocurrencies. Some of them describe digital money as a bubble and a Ponzi scheme and believe that 98% of coins are fraud; others think that cryptocurrencies will completely replace traditional money in the next five years.
According to Patrick Byrne, Overstock Founder and CEO, the main question now is how fast fiat money will depreciate because of their irresponsible overissue.
Byrne supposes that consumers should abandon dollars and shift to cryptocurrencies right now.
Reid, Deutsche Bank lead strategist, talks more detailed about the reason for digital money replacing fiat one. He considers the modern financial system quite unstable, because it is based on the US dollar, which exchange rate is not backed by the so-called gold standard. Thus, in case of uncontrolled high inflation, constant money printing will lead to the depreciation of conventional money. The expert believes it is digital money that will help to overcome the global financial crisis and will become the only alternative to fiat funds.
Authorities of some states have a positive attitude to cryptocurrencies and create pretty favorable conditions for digital coin transactions. The recent example is Belarus that has legalized bitcoin and cryptocurrency mining.
Besides, one is frequently discussing the development of state virtual money. China, Venezuela, Poland, and the UK have announced their intention to issue their own cryptocurrencies.
Key aspects of cryptocurrency selection
Choosing cryptocurrencies to invest in, one should take into account several factors. Firstly, coin capitalization: the higher it is, the lesser the network falls under outside influence and is more stable.
Secondly, digital currency should be based on the valuable idea that can be beneficial for users. For instance, smart contracts, anonymity, and transaction speed.
Thirdly, developers’ reputation and platform’s community support are also quite a significant aspect when selecting cryptocurrency for investment.
2018 TOP cryptocurrencies to invest in
So, what cryptocurrencies are worth investing in as of 2018? As mentioned above, a significant feature to be taken into account when choosing coin for investment is the market capitalization.
According to the Coinmarketcap analytical service, the top ten list of popular cryptocurrencies looks in the following way:
It is these cryptocurrencies that are in demand among traders because of their high liquidity and growth prospects.
A permanent leader of the rating is bitcoin. Besides, altcoins are snapping at its heels. Their total capitalization is significantly exceeding the BTC figure. Let’s review in detail the TOP 3 popular cryptocurrencies for investment in 2018.
The majority of cryptocurrency analysts believe that a part of investments should necessarily be in Bitcoin. This coin attracts more and more attention in the whole world. Moreover, it is taken more seriously now.
In particular, Japan recognized Bitcoin as a legal payment method previous spring. An increasing amount of shops and services is allowing to make purchases using this currency. The recent example is WeMakePrice, the largest South Korean online store, permitting their customers to buy goods for bitcoins.
Ethereum is ranked second in the list. The coin hardly falls lower than the 2nd line. However, if such a situation occurs, the currency returns its previous place pretty fast. In 2017, the exchange rate of coins grew more than 100 times. In 2018, its price will keep growing, according to crypto experts.
Ethereum is a platform for developing decentralized online services based on distributed ledgers applying smart contracts. Good examples include KYC-Chain (identification system management) and Weifund (crowdfunding platform). Applications on the Ethereum platform can be used in healthcare, finances, insurance, and jurisprudence. The system also allows to conduct ICOs and, consequently, attract investments.
In 2018, developers are going to add major upgrades to the platform operations in order to make it more efficient.
All of this gives good grounds for considering the cryptocurrency attractive for investment.
Ripple price was steadily growing against the news about network testing by Asian banks and their intention to use the platform for transactions. As the result, the coin rate increased from 0.0065 to $2 in a year.
Ripple primarily aimed to integrate the system into the banking sector. The platform is designed for speeding up transactions and reducing payment fees. As of today, Ripple cooperates with the largest financial institutions, including Santander, Abu Dhabi Commercial Bank, and UniCredit. It means that the platform is trustworthy and considered to be a great alternative to traditional transaction services.