It’s easy to get caught up in the hype of cryptocurrencies and blockchain technology, but not everyone has the time or know-how to invest in this emerging market. In this article, we’ll take you through some basic strategies for how to determine which cryptocurrency might be best for you to trade.
How to Determine the Best Crypto to Trade
The cryptocurrency market is very volatile, so the best time to sell your cryptocurrency will depend on your goals. If you are an investor who wants to make money from day trading, then it’s important to determine when the best time is to sell your crypto.
If you want to hold onto your investment for long-term gains or because you believe in a particular project, then it’s important that you understand when might be the right time for selling. For example, if Bitcoin hits $22k again but doesn’t reach $29k within six months of hitting this price point then maybe now would be a good time for selling? Or maybe not?
The cryptocurrency market is very volatile and this means that there are no guarantees when it comes to timing the market. If you’re going to trade, then you need to be aware of this fact and plan accordingly.
To determine the best cryptocurrency to trade, you must first look at volume. Volume is a measure of the number of times a cryptocurrency has been traded in a given period. It’s calculated by multiplying the price of an asset by the number of units traded in that period. Volume is extremely important—it tells you how much interest there is in an asset and whether people are buying or selling it.
Price x Volume = $25 x 10 = 250 ETH, which means that in one day someone spent $250 worth of Ether on this token (ether itself being another crypto).
- Market Cap
The second metric is market cap, which is the total value of all coins in circulation. This can be calculated by taking a coin’s price and dividing it by the number of coins in circulation. For example, if $1000 worth of Bitcoin were divided among 1 million coins (1 BTC), each coin would have a value of $1.00 ($1000 / 1 million). The higher the market cap, the more valuable a coin is because it means that there are fewer coins available and less supply for investors to purchase with their money.
- Top digital assets to invest in 2022
You’ll probably want to hold onto your cryptocurrency for a while, but if you’re looking for a good altcoin to trade with, here are our top picks:
- Bitcoin (BTC) – The most popular cryptocurrency in the world. Volatility is extremely high for this coin so we recommend only trading it after making sure that you’re comfortable with market fluctuations.
- Ethereum (ETH) – The second-largest cryptocurrency by market cap behind Bitcoin and one of the most promising projects in blockchain today. It’s also traded on many popular exchanges such as Poloniex and Bittrex.
- XRP – The third-largest digital asset by market cap behind ETH/BCH and BTC respectively. XRP has been closely associated with Ripple Labs which released an updated version of its payment platform xCurrent last year called xRapid designed specifically to use XRP for liquidity needs rather than fiat currencies like USD or EURO
Bitcoin (BTC) is a cryptocurrency created by Satoshi Nakamoto. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown individual or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship or third-party interference. The Ethereum blockchain is the world’s second largest blockchain after Bitcoin.
Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer, who called it “a next generation cryptocurrency.” It was launched in 2015.
XRP is the fastest, most scalable digital asset. It enables real-time global payments anywhere in the world and is used by banks, payment providers and corporates to make seamless payments at a lower cost.
XRP is a digital asset that can be used for cross-border payments and exchanges with no settlement risk. XRP, as the primary currency on RippleNet, provides banks with greater control over liquidity costs, access to new markets and reduced capital requirements for hard currency purchases.
Ripple was released in 2012 by its creators Jed McCaleb (also co-founder of Stellar) and Chris Larsen who were both entrepreneurs looking to disrupt traditional financial institutions through blockchain technology.
Bitcoin Cash (BCH)
Bitcoin Cash is a peer-to-peer electronic cash system that was created in August 2010 by Satoshi Nakamoto, who published the invention on 31st October 2008 in a research paper released to the Cryptography Mailing List.
Bitcoin Cash is an open source software project which allows users to send and receive coins without an intermediary. The network uses Proof of Work (PoW) consensus mechanism, with a block time of 10 minutes and difficulty adjusted every 2 weeks using Kimoto’s Gravity Well (KGW).
All transactions are verified by miners using their computing power to solve cryptographic puzzles and validate transactions as they are added to the blockchain. This process is called mining, as miners confirm blocks of transaction data on the bitcoin network in exchange for newly minted coins that they can keep or trade on cryptocurrency exchanges like BitMEX or Coinbase Pro.
Launched in 2011, Litecoin (LTC) is a peer-to-peer cryptocurrency based on an open source global payment network that is not controlled by any central authority. In addition to being an alternative to Bitcoin, it also has some technical differences compared to Bitcoin that allow it to have fewer transaction fees and faster confirmation times. The Litecoin blockchain will produce 84 million currency units over its lifetime, which is 4 times as many currency units as Bitcoin (BTC). Charlie Lee created Litecoin during his time at Google when he noticed the problem with high fees in BTC transactions. He worked on this project for two years before finally launching LTC in 2011.
Tether (USDT) is a cryptocurrency that’s tied to the value of each US dollar. It’s backed by real dollars held in reserve, which is why it has become popular as a way to trade and store value. You can buy USDT on several exchanges, including Poloniex and Bittrex.
The main benefit of trading Tether is that it has all the benefits of Bitcoin without some of its downsides: there are no transaction fees for sending money via Bitcoin or Ethereum, but those currencies are volatile in price and can be slow to transfer funds between exchanges—all issues that Tether solves by being pegged directly to the dollar.
Ethereum Classic (ETC)
Ethereum Classic is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
Ethereum Classic is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.
The Ethereum Network was launched in 2015 with its native token being called “Ether” (ETH). The currency was named after Ethereum’s founder, Vitalik Buterin. Ether (ETH) acts as an incentive to motivate developers who create liquidity on the platform and thereby secure it against spam attacks and other threats to its existence
Cardano is a project that aims to solve the problems of the blockchain industry. It’s one of the best cryptocurrencies for 2019 and has a market cap of $2.1 billion.
Cardano is a proof-of-stake cryptocurrency which means that it’s not mined like Bitcoin. Instead, new coins are created through staking or trading within its native wallet system. You can stake your ADA tokens on Cardano’s network and earn rewards in new ADA coins!
Zcash (ZEC) is a privacy coin that is based on the Zerocash protocol. This means that transactions are completely anonymous, making it more secure than Bitcoin. The cryptocurrency was launched in 2016 and currently ranks number 16 by market cap according to Coin Market Cap.
Zcash uses zk-SNARKS for transaction privacy, which allows for transparent addresses as well as shielded addresses to make payments without revealing your identity or other information about you. While this sounds great at first glance, there are some concerns regarding whether or not this would affect ZEC’s future development due to its complex nature and limited ability to scale up quickly enough while maintaining high levels of security and privacy (source: https://www.coindesk).
The most liquid cryptocurrencies in the world
Bitcoin, ethereum and ripple are the most liquid cryptocurrencies available, but if you’re looking to trade smaller volumes of cryptocurrency, there are alternatives. Here are six you might want to consider:
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Tether (USDT)
- Cardano (ADA)
- Zcash (ZEC)
- Ethereum Classic (ETC)
Blockchain technology, cryptocurrencies and the blockchain have come a long way in a short period of time. As these technologies continue to evolve and mature, their adoption will only grow. It is important for investors to understand how these technologies work and how they can benefit from them.
Before you start trading cryptocurrency, it’s essential that you learn about the basics of investing in general—namely asset allocation and diversification techniques—as well as specific strategies that are typically used by professional traders when buying or selling digital currencies.
Cryptocurrencies offer a great way for retail investors to diversify their portfolios while still having exposure to an emerging market (digital assets). Because there are many different cryptocurrencies available on several different exchanges around the world, it may be difficult at first glance for someone new who is interested in investing with this type of asset class; however, if done correctly then it could potentially lead towards higher returns over time due to its potential upside potential relative .
How to Choose the Best Crypto to Invest In
This is a guide to help you determine the best crypto to trade. How do you know which one is right for you? The answer lies in looking at your personal situation, but it’s also important to consider other factors. Do you want to buy and sell cryptocurrency or just hold onto it? If so, short-term or long-term investing might be more appealing.
The strategy for each type of trader is different, so it’s important to know what kind of investor you are before making a decision. If you’re just looking to make some quick cash, then trading on the short-term might be better suited for you. However, if you’re looking for something more long-term and want a steady income from trading cryptocurrency, then holding onto coins may be the way to go.