Best Cryptocurrency to Invest in 2019
Cryptocurrencies have performed debatably in 2018, yet are continuing to attract new investors in 2019.
However, most beginners have difficulties finding the next cryptocurrency to invest in 2019. We’ve all been there, so don’t worry! I understand how confusing it is when you first begin looking for new cryptocurrency investments. And that’s why I’m here to help.
So, are you also looking for the next cryptocurrencies to invest in 2019? Do you find yourself wondering “Should I be investing in Bitcoin?” or “Should I be in investing in Ethereum?”
Well, wonder no longer! I’m here to answer all your questions. By the end of this guide, you’ll know how to find cryptocurrencies to invest in 2019.
But first, let’s talk you through the recent growth of cryptocurrencies.
Cryptocurrency Market So Far
The first cryptocurrency, Bitcoin, was invented back in 2009. That was just the beginning though, and nobody really knew about Bitcoin until 2013. However, since 2013 the cryptocurrency market has seen huge growth — growth that has been hard to ignore. There are now more than 1500 different cryptocurrencies, all created in less than 5 years.
It’s clear that 2017 was the year crypto really blew up. The market cap of cryptocurrencies grew by 4000%! The market cap of all cryptocurrencies was around $21 billion in March 2017, whereas it is now over $454 billion. That’s huge!
Market cap: The total price of all coins added together.
The cryptocurrency market isn’t just about Bitcoin anymore. There are other cryptocurrencies that have entered the space, such as Ethereum, Litecoin, and Ripple. All of these have performed incredibly well over the last year.
The following chart from CoinMarketCap shows the growth of cryptocurrencies over the years.
est-cryptocurrency-to-invest
There are a lot of things being said about the future of cryptocurrencies. Some people believe that the cryptocurrency phase won’t last long, while others think they’re going to be around forever.
It is difficult to predict the future of cryptocurrencies, but what I do know is that the popularity of cryptocurrencies is only increasing. One of the reasons why cryptocurrencies are becoming more popular is because of blockchain technology, which is the main technology behind all cryptocurrencies.
Blockchain technology is the next big thing – it is secure, trustless technology that was first used by Bitcoin. You can’t learn how to invest in blockchain, though. Instead, you can learn how to invest in the cryptocurrencies that use blockchain (which is all of them!)
Are you ready to find out about the next cryptocurrency to invest in 2019? Well, let’s get started.
So, what are the Best Cryptocurrencies to Invest 2019
Best Cryptocurrency to Invest 2019: Bitcoin (BTC)
If somehow, you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the biggest cryptocurrency — it currently has a 40%i share in the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates in the market. So, if Bitcoin continues to increase as it did in 2017, then investing in Bitcoin might be a good idea for 2019.
The price of Bitcoin changes a lot every day and has seen many highs and lows over the last few years. Take a look at the following chart and you will see just how much the price changes.
est-cryptocurrency-to-invest
The price of 1 Bitcoin has gone from around $76 (07.09.13) to as high as $20,000 in December 2017. But then after Bitcoin reached its highest point in December, the price of Bitcoin dropped to around $6000 in February 2018, and has been dropping even further ever since. It’s crazy!
With the price changing so much in such a short space of time, how do you decide what the best time is for investing in Bitcoin?
Well, we can try to find the answers by looking at some important past events — when the price went up or down by a large amount.
One major event was when Bitcoin split into two cryptocurrencies — Bitcoin and Bitcoin Cash. This happened August 1st Investors who knew about this invested their money before the split and made huge profits, almost doubling their investment!
The price of Bitcoin dropped to around $10,000 in January 2018, almost half of the $20,000 it was worth in December 2017. Many investors became worried at this point and started selling their Bitcoin. This caused the price to fall to around $6,000 in February 2018.
Bitcoin Investing
If you want to invest in Bitcoin then you need to stay up to date with the latest news and trends around Bitcoin. When news is released about a new technical improvement, you might want to think about buying Bitcoin. If there is a huge fall in price of Bitcoin, then that too might be a good time to buy Bitcoin because you can buy it a low price.
If you have already decided to invest in cryptocurrencies, then it might be a good idea to start by investing in Bitcoin. Even though you have missed the first major opportunity to invest, investing in Bitcoin could still be a good idea.
It all depends on whether you believe in the future of Bitcoin. If you believe in it, you should think about investing in it. If you don’t, then I recommend that you stay away from it. It’s the same with any investment!
Best Cryptocurrency to Invest 2019: Ethereum (ETH)
Towards the end of last year, the price of Ethereum was slightly higher than $720, with a total market cap of around $70 billion. At the beginning of 2018, Ethereum climbed and reached its highest price of $1423 on January 4. At this time, the total market cap for Ethereum was at $138 billion!
Ethereum grew by about 3000% in the year 2017 and became the second largest cryptocurrency, placing second behind Bitcoin.
Are you asking yourself, “Should I invest in Ethereum?” or “Is the price of Ethereum already at its peak?”. Well, the truth is, nobody knows! However, the following information should help you decide whether investing in Ethereum is a good option for you.
The chart below shows how Ethereum has grown over the last few years.
est-cryptocurrency-to-invest
Below are the key events that have most affected the price of Ethereum in the past:
Ethereum received an investment of around $150 million in May 2016. As a result, its price went up from $1 in January 2016 to around $14.80 in May 2016.
However, On June 18th, 2016, members of the Ethereum community found out that Ethereum had been hacked. Around $60 million worth of Ether (Ethereum’s currency) was stolen due to a flaw in a wallet. This caused the Ethereum price to drop from the high of $21.52 on 17th June 2016, to $9.96 on the 18th June 2016.
Unlike Bitcoin, Ethereum is not just a digital currency. It is a more advanced blockchain project. This is because Ethereum offers something special — by using Ethereum’s platform, developers can build their own cryptocurrencies.
Imagine that you would like to build a blockchain-based solution for managing the supply chain of your business. Well, thanks to Ethereum, you don’t need to start from the beginning. Instead, you can just build an application on Ethereum’s blockchain. Ethereum makes it much easier for new blockchain projects to launch.
So, is Ethereum your next cryptocurrency to invest in 2019?
I recommend that you think about adding Ethereum to your list, as I think it could be one of the best cryptocurrency to invest 2019.
Julian Hosp, a blockchain expert, said that the market cap of Ethereum could rise to $200 billion by the end of 2019. If Hosp’s prediction is correct, the price of Ethereum will reach up to $2000. Hosp’s reason behind the prediction is based mostly on the ICOs (Initial Coin Offerings) that decided to use the Ethereum blockchain in 2018 & 2019.
Ethereum also plans to improve their technology a lot this year, with new protocols almost ready to go. So, watch out for Ethereum!
To learn more about Ethereum, read our Ethereum vs Bitcoin guide.
Best Cryptocurrency to Invest 2019: Ripple (XRP)
Ripple, also known as XRP, was one of the best performing cryptocurrencies in 2017 with growth of around 36,000%! Yes, you read that right. It grew from almost $0 at the beginning of 2017 and reached $2.4 in December 2017 — as you can see in the following chart.
Like all other cryptocurrencies, the price of Ripple has also decreased in 2018 — it is currently set at $0.36.
est-cryptocurrency-to-invest
I know what you’re thinking — you missed a great opportunity by not investing Ripple in early 2017. While that’s true, Ripple could still be a good option to consider as your next cryptocurrency to invest in 2019.
Even though the price of one XRP is a lot lower than the price of one Bitcoin, XRP is still the third largest cryptocurrency by market cap. In May 2018, it had a total market cap of around $35 billion.
So, what is it about Ripple that has made it so popular for investors?
The main reason for Ripple’s popularity is that it is not just a digital currency, but also a payment system. Ripple uses blockchain technology to make international payments securer and faster.
If you tried to make an international bank payment today, it would take around 2-10 days for the transaction to process. The same payment, when done using Ripple, takes a few seconds. How awesome is that!
But there’s more good news – many large financial institutions like American Express, JP Morgan and Santander are already using Ripple’s technology. Also, Ripple has been working with the Saudi Arabia Central Bank, China’s LianLian International and other banks from around the world.
So, if you’re wondering how to invest in blockchain, then Ripple might be the best answer.
Based on what I just explained, Ripple’s future in financial industry could be a good one. You should watch out for Ripple and learn more about their partnerships. Look out for new partnerships too — if Ripple signs a contract with another large bank, then it could increase the price of XRP.
The investors, who understood the services that are offered by Ripple, have made a lot of money. After a fantastic 2017, Ripple could just be the best cryptocurrency to invest 2019.
Note: Now might be a good time to invest in Ripple, as its price has dropped 70% lower than it’s all-time high of $3.4 in January 2017.
Best Cryptocurrency to Invest 2019: Litecoin (LTC)
Our list of what is the best cryptocurrency to invest 2019 cannot be complete without Litecoin. Just like Ripple, Litecoin showed great performance in 2017 with a growth of almost 8000%.
The price of Litecoin grew from around $4 at the beginning of 2017 to a high of $358 in December 2017. However, just like most cryptocurrencies, Litecoin also followed the price trend and dropped to $110 on February 2018.
Take a look at Litecoin’s price chart below — you can see the quick rise in the price of Litecoin at the beginning of 2018. The price of both Litecoin and Bitcoin have followed a similar trend over the last year.
est-cryptocurrency-to-invest
Litecoin is the 5th largest cryptocurrency with a market cap of around $11 billion. Litecoin continues to interest investors because of its close connection to Bitcoin. Providing a good reason for Litecoin to be on our list for the next cryptocurrency to invest in 2019.
Litecoin was created in 2011 to improve upon Bitcoin’s technology. Litecoin completes a transaction 4 times faster than Bitcoin. However, unlike Bitcoin, the maximum number of Litecoin is capped at 84 million — 4 times more than the coin supply of Bitcoin (21 million).
Litecoin was the first cryptocurrency to perform a Lightning Network transaction in May 2017. Using the Lightning Network, 0.00000001 Litecoin was transferred from Zurich to San Francisco in under one second! Once Litecoin starts using the Lightning Network, it could increase the price of the Litecoin!
Lightning Network: A new technology which increases the speed of transactions on the blockchain network.
Investment Strategies: Let’s Make Something Clear
How do investors make decisions they want to invest in real estate or stocks? Do they start making investments the moment they think about it? My guess is that the answer to that question is – no!
Before you invest in anything, you need a clear understanding of what your investment goals are and how you will achieve them. You want a good idea of how long you are prepared to keep your investment open, and what amount of profit you are happy to take.
You should have the same mindset with cryptocurrency investments. Before you decide what the next cryptocurrency to invest in 2019 is for you, let’s discuss the two main types of investment strategies for cryptocurrencies.
Long-term Cryptocurrency Investment
A long-term investment is one where you expect a cryptocurrency to perform better over a longer period of time. Simple! Normally, the minimum time for long-term investment is 6 months to 1 year. Although, some people plan to hold onto their investments for 5-10+ years. It’s up to you how you choose to invest; you can either make your full investment in one go, or you can invest at different times.
Once again, before investing any amount, you must have a clear idea of what your investment goals are:
Will you sell the cryptocurrency after a certain amount of time or will you sell it when it reaches a certain price?
Will you sell off your investment at once or will you sell parts of it at different times?
On what occasion would you sell the long-term investment in the short term? For example, if new laws come into place that could affect the long-term price of your investment, you might consider selling it sooner.
Next, you should do some research to decide which cryptocurrencies are best as long-term investments. I recommend that you check for the following:
Is their technology better than their competitors?
Do they have a strong team of founders and developers?
How good is their roadmap/plan?
Are they solving any real-world problems?
If you really believe in the cryptocurrency you invest in, you should learn to hold on to your investment even when the prices drop. If you ‘panic sell’, then you could lose money and regret selling.
Reasons For Making Long-Term Investments
Long-term investing makes your life easier as you don’t need to watch the market all the time
You believe that some cryptocurrencies will give a better return in the long-term
You truly believe in the future of the cryptocurrency
Short-Term Cryptocurrency Investment
Short-term investments are made over shorter time periods in the hope of making quick profits. So, just how short is a short-term investment?
Short-term investments can take seconds, minutes, days or even a few months.
How Do Short-Term Investments Work?
Just like long-term investing, you need to have clear goals for your investment. You need to be asking yourself:
What profit are you expecting to make from this investment? This will give you an idea of the price at which you should buy/sell the cryptocurrency.
How much of a loss will you accept? This will help you control your losses if the price of cryptocurrency suddenly drops.
Do you have time to study and follow the crypto market and the news?
Can you make technical analyses of the crypto market? If not, then you should learn before investing.
Will your short-term strategy give you higher returns than a long-term strategy?
You need to find out which is the best cryptocurrency to invest 2019 for short-term. Cryptocurrencies that have the following are good options for short-term investments:
Low market cap
High trading volume — lots of people are buying and selling it every minute
Are currently trending on the news and on social media
Have an ICO or have just finished their ICO — try to get them at a low price
While cryptocurrencies like Bitcoin and Ethereum can also be traded in the short-term, you should think about investing in the newer cryptocurrencies. Investors have made huge profits in past with short-term investments – including some of the major, but newest cryptocurrency investments like NEO, Stellar, IOTA and NEM.
The main advantage to short-term investments is that you can make a lot of money in a short amount of time — they have made a lot of people rich quickly. However, they still have their disadvantages.
So, what are they?
They take up a lot of time and effort as you need to watch the market prices constantly
It is a riskier investment and can result in greater losses because of how much the price changes in a short time
It can be very stressful and emotional
It’s difficult to say which is the better option of the two investment strategies. It all depends on your goals and experience in the cryptocurrency market.
If you really believe in a project, then I recommend that you invest for the long term. However, if a project is new and is generating a lot of attention, then short-term trading could be the better option.
Final Words
While cryptocurrencies can give you huge profits, you must be prepared for one more thing — to lose money. Remember, your predictions won’t always be right! Nobody truly knows what is going to happen to the price of a cryptocurrency, or any other investment.
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