How to Choose which Altcoin to Invest in?

Investing in crypto is a risky job and it is a hot investment. So very few investors are taking the risk. Bitcoin is the first cryptocurrency that was launched after the financial crisis of 2008.

Even though it was treated skeptically in the beginning, now it is an investment asset more than a viable payment medium. Today, most people are aware of cryptocurrencies, especially bitcoin and some other altcoins like Ethereum and Litecoin.

Each altcoin has its own value. They offer decentralized computing and data storage for the customers. But the uncertain and frequently fluctuating nature of Bitcoin, as well as Altcoins, make the crypto investment riskier.

If you are a cryptocurrency enthusiast and are interested in crypto investment, then read this article till the end to know how to choose which altcoin to invest in.

Altcoins and criteria to choose them for investing

• Bitcoin

Amidst this COVID-19 pandemic, crypto investors have a doubt whether Bitcoin is good investment ort not. As this pandemic has shaken the global economy, considering investing in Bitcoin or in any other cryptocurrency involves some risk factors.

Even though, the price of Bitcoin has risen 60 percent in 2020. As the investors are looking to hedge their portfolios they have piled to Bitcoin amid the COVID-19 pandemic. Is investing in Bitcoin is a good idea?

If you want to hold an asset to resist inflation, then investing in Bitcoin is a good idea. As the supply of Bitcoin is restricted to only 21 million, then the inflation doesn’t dilute bitcoin’s value.   

• Ethereum

Ethereum is the second-largest cryptocurrency. If Bitcoin is the king of the cryptocurrency, then Ethereum is the queen. When this pandemic has created the most volatile economy, investors are looking to learn how to trade Ethereum.

Thus this year, there is an increase in the number of active new Ethereum wallets by 50 percent. Ethereum 2.0 is also imminent in 2020, and this premise made a shift from the current proof of work consensus algorithm to the proof of stake algorithm.

This increases the speed and quality of the Ethereum network which leads to an increase in its price and popularity. 

• Ripple 

The most important point to be noted before investing in Ripple is that it is not just an Altcoin like Ethereum or Litecoin. It is a payment protocol intended to streamline international and cross-border payments around the world.

The positive aspects of investing in Ripple are, that it solves problems for large financial institutions, speeds up the flow of capital, etc. Ripple is a fully-fledged company with more than 500 employees. So don’t underestimate it as a normal cryptocurrency or as a technology.  

• Litecoin 

Litecoin is nearly similar to Bitcoin. But its supply is four-time greater than Bitcoin. That is four times greater than 21 million. But even though it doesn’t perform well. Those who chose to invest in Litecoin note that new highs for Litecoin are just kept on coming. That is, past performance doesn’t indicate what is going to happen in the future. 

Without having to rely on any banking systems or government orders, cryptocurrency allows you to convert your funds into digital and hold them securely.

So cryptocurrency investments are a good option to hold your savings, even though it involves some risk factors. The above given are the most popular four Altcoins and the criteria to choose them for investing.

If you are stuck anywhere in the article, then feel free to communicate with us through the comment section.