This article will explore the best cryptocurrency to invest in 2018 along with tips on how to go about taking the first steps in the investment process.
Grip the best cryptocurrency for one’s needs often makes the difference between successful and not-so-successful investors in the cryptocurrency space.
Possession of relevant and up-to-date knowledge on the subject is a critical factor behind the decision thus it is critical that the necessary information is at your disposal.
What is the best cryptocurrency to invest in 2018?
The advent of blockchain technology and cryptocurrencies has opened up new possibilities for both institutional and individual investors across the globe.
In a space of less than a decade, the industry is already filled with a gigantic number of cryptocurrencies, each trying to find its way to potential users.
In fact, the internet currently houses over 1600 cryptocurrencies, and expecting further additions in the near future. This in itself is a problem to the investor who is only getting acquainted with the industry.
Let’s have a few moments of consideration on the best cryptocurrencies to invest in 2018.
Bitcoin has and will always have the legacy of being the first decentralized peer-to-peer system that has a colossal advantage of time and experience over most of its competitors.
Since its establishment in 2009, it has led the world of cryptocurrencies as clearly demonstrated by most statistics.
Let us first consider the total market capitalization of the cryptocurrency. In case you are yet to know the meaning of this parameter, shortly known as “market cap”, it refers to the total dollar market value of a cryptocurrency obtained by multiplying the number of assets in circulation and the related average market price.
The Total market capitalization of Bitcoin has risen from $0.04 billion in the first quarter of 2012 to the current $114 billion making it to drift through the crypto space as the number 1 crypto currency based on this parameter. The total market cap reached its all-time high in December at 40.68 billion.
When it comes to price, just like most cryptocurrencies, Bitcoin has been characterized by significant volatility since its inception. However, on the grand scheme of things, the price has increased from $367 to the current price placed at $7,000.34 at the time of writing.
The last month of 2017 was characterized by an all-time high with the price hitting $20,089. This was later on followed by a general down trend in 2018 which has led us to the current price.
Such a colossal difference in such a short time attests to the volatile nature of the cryptocurrency and the crypto space as a whole.
Bitcoin has a maximum coin supply at 21 billion of which about 17 million coins are in circulation. The average 24 hour trading volume, a description of the volume of digital assets traded in a given day, stands at $399 billion.
Why Bitcoin (BTC) is one of the best cryptocurrencies to invest in 2018?
There are two main factors that place Bitcoin in the elite of the pack.
1. Strong statistics
It is undisputed that the cryptocurrency has a remarkable edge in most of the essential parameters including total market cap, trade volume and daily price. To date, no other crypto on the market has replaced it in terms of overall dominance.
2. Increasing adoption
Being an early bird in the crypto space has come with the benefit of having ever-increasing adoption by the financial sector.
It is well established that it still maintains its position as the cryptocurrency that most of the consumers are familiar with thus leading to a greater influence in the financial sector.
This means that it has the highest potential for further growth and capital inflow which translates to profitable investments.
The future of Bitcoin
Although the cryptocurrency has been enduring a bearish run lately, most experts remain optimistic about the future of the cryptocurrency.
The grand scheme of things demonstrate an ever-increasing adoption especially in most financial institutions looking to embrace blockchain technology.
This combined with possibilities of a Bitcoin ETF in the near future may lead to more investments and growth.
Monero is a cryptocurrency that’s increasingly gracing popularity and adoption in the past 2 years.
It was established in April 2014 and features an open source cryptocurrency with a laser-focus on the concept of decentralization and complete privacy. It uses what is known as an obfuscated public ledger where transactions can be conducted with utter obscurity.
In other words, it is impossible to establish the source, amount, and destination relating to a particular transaction.
Another defining feature is its use of a proof-of-work mechanism which enables issuance of new coins and incentivizing miners to augment overall network security and validation of transactions.
It currently holds the number 10 position based on the total market cap, which is $1.5 Billion. The average 24 hour Trade Volume stands at about $21 million.
The current price lingers within the $92 vicinity with an all-time high price of $542 achieved on 09/01/2018, which further means that it has depreciated by 82.9 per cent.
Why XMR is one of the best cryptocurrencies to invest in 2018?
Monero has a unique architecture that guarantees an elite level of privacy. In sharp contrast to most bitcoin derivatives, it was built based on an advanced algorithm that ensures high level of user anonymity that cannot be breached in addition to fungibility.
In general terms, fungibility means that units can be substituted thus making it impossible to pinpoint addresses for blacklisting purposes.
Additionally, specialized features such as Stealth Addresses and Ring Signatures raise the bar for most cryptos, even the robust-sized ones.
Apart from enhanced anonymity, position 8, based on the total market cap isn’t a mean achievement at all as it means that it is rapidly being embraced by different investors which is a great indicator.
Monero (XMR) Future prospects
The future prospects promise a lot as Monero has demonstrated its commitment to growth with distinct milestones some of which have already been achieved.
The crypto has a list of new features such as the bulletproof protocol to show for its advancements.
In short, Monero might well be on a path to being a worthy competitor to the leading names in the crypto space such as Bitcoin and Ethereum.
NEM is a peer to peer cryptocurrency and blockchain-based platform that was established on march, 2015.
It envisions a robust decentralized distribution model incorporating a number of upgrades to the current blockchain system. Key features include Proof-of-importance, multi-signature accounts, encrypted messaging and eigentrust++.
The cryptocurrency has a coin market cap of $917 million placing it on position 30. The Trading Volume is $7.5million and has a total circulation of 9 Billion.
In terms of the price, it lingers within the $0.1 vicinity and its history shows an all-time high of $1.87 on 07/01/2018.
Why XEM is one of the best cryptocurrencies to invest in 2018?
NEM has established its reputation as one of the systems with a highly effective way of monitoring node performance and ensuring efficiency.
The unique proof-of-importance (PoI) algorithm which is significantly different from the traditional Proof-of-Work or Proof-of-Stake algorithms gives it this distinct advantage.
Other features also enhance the systems overall security and usability that are indicative of a cryptocurrency with a high potential for increased adoption in the near future.
The Nanowallet is only connected to the NIS by means of a firewall which makes it practically and relatively impossible to disrupt and break in.
The future of NEM (XEM)
The cryptocurrency has managed to gain a formidable position for itself by providing highly advanced features to their users along with incorporating new upgrades in its blockchain platform through new partnerships.
A great example is the Catapult which is a recent development aimed at achieving representation of new NEM protocols to the clients. The new feature is expected to infiltrate a number of industries including monetary protocols and logistics.
Decred is a cryptocurrency based on a hybrid proof-of-work proof-of-stake system that was initially developed to address some of Bitcoins common challenges. The platform was launched in February, 2016.
The platform had an overall aim of balancing the power between investors and miners through a decentralized governance system that Bitcoin could not provide.
This is expressed in the CEO’s words in December 2017:
“Decred will be an open, progressive, and self-funding cryptocurrency with a system of community-based governance integrated into its blockchain”
The crypto has its current Market cap placed at $328 million, a trade volume of $8 million, a Maximum supply of 21 billion and a current circulation at 8 million. The current price oscillates within the $39 range.
Why DCR is one of the best cryptocurrencies to invest in 2018?
The greatest advantage the cryptocurrency affords is the revolutionary hybrid system that enables investors to be more involved and have a more powerful participation through a decentralized governance system.
The platform also involves some commendable incentives such as participants being paid to vote.
Future prospects of Decred
The decentralized governance system ensures a platform with enhanced usability which should effect on the token’s value in time. Furthermore, the platform provides a lot for developers as it has cross-compatibility and enhanced communication protocols. This implies that the future promises a blockchain based system that will be beyond smart contracts to embrace digital asset and atomic asset swapping.
Aeternity is yet another blockchain platform with a focus on smart contracts and decentralized apps.
The platform promises a smart contract solution that provides a combination of efficiency and scalability. The platform’s ICO was conducted in 2017and expects to have its mainnet launched within the year 2018.
It boasts of a number of key features that include a hybrid mechanism that combines a proof-of-stake and proof-of-work mechanism, state channels and others that promise a great deal of efficiency.
It has its total market cap currently placed at $244 billion ranking it on the 38th position relative to other cryptocurrencies. The daily trade volume stands at $6 million and features a total supply of 273 million with 233 million in circulation.
In terms of price, the crypto maintains its comfort within the 1 dollar vicinity.
Why AE is one of the best cryptocurrencies to invest in 2018?
Aeternity’s high potential for growth is perhaps its best-selling point. The fact that the platform has moved mining from GPU to CPU means that it can easily be mined using standard hardware and software thus being more accommodative.
This can easily translate to wider adoption leading to more investments and overall improvements in terms of price.
Future prospects of Aeternity (AE)
Aeternity has a strong backing, but it still lingers in its early stages of development. A strong team is in place that shows every indication it can overcome the obstacles to sustain relevance over the next decade.
It seems that its success hinges on whether the advanced features it embraces are implemented and accepted by the mainstream.
Cardano is a blockchain-based platform focused on improving on the concept of smart contracts.
Established on the 29th of September, the platform holds the promise of developing more advanced features than any system previously developed.
Highlights include a proof-of-stake mechanism known as the Ouroboros which was developed to exist as the most scalable consensus algorithm in the present day. The Daedalus wallet serves to accommodate the platforms medium of exchange known as the Ada tokens.
Cardano’s coins are generated through mining and all decisions are established through the proof-of-stake Ouroboros algorithm.
While coin holders are responsible for generating consensus, slot leaders take on the responsibility of producing new blocks within the system as well as conducting transactions verification.
Any participant with an Ada coin in possession has the ability to be a slot leader. The staking mechanism has the intrinsic advantage that it renders brutte forcing the hash code unnecessary.
This means that less energy is expended thereby allowing a highly efficient and less expensive blockchain creation process.
The Cardano platform functions on a specialized blockchain known as the Cardano Settlement Layer (CSL). This is in principle an accounting layer that accommodates ledger transactions. A second layer is known as the Cardano Computation Layer.
This is purposed to provide support to smart contracts as well as other decentralized applications. This Bilayer setup ensures that updates are easier by means of soft forks.
At the time of writing, the cryptocurrency had a total market cap of $2 billion, an average 24 hour trading volume of $33 million and a total supply of $31 billion.
Based on the market cap, Cardano is ranked on number 8 and has its market price oscillating within the vicinity of $0.09. It hit its all-time high at $1.18 on the 4th of January this year and gradually depreciated like most cryptos within 2018.
Why ADA is one of the best cryptocurrencies to invest in 2018?
The system ensures flawless operation and ultra-efficiency chiefly through the programming language underlying the platform.
It utilizes a language known as Haskell which uses highly precise and automatic mathematical verification protocols thus getting rid of human errors.
In addition, the multilayer protocol provides a complex but highly reliable system as witnessed by most users.
ADA Future prospects
With more and advanced features to augment the current system, the crypto seems to give so much more to the tech savvy user in the near future.
Expected additions include more sidechains, quantum resistant signatures and other wallet associated features.
It seems the company has demonstrated a remarkably clear vision and a solid footing to pave the way for the future.
QuarkChain is a blockchain platform that focuses on one main aspect: efficiency.
As a platform, it embraces a high-throughput maneuver with the primary aim of conducting millions of transactions in a single second.
It’s beginning to be accepted as a platform with the ability to provide a highly secure, scalable and decentralized system to provide numerous transactions per second.
The platform’s sharding technology is the main factor behind its colossal speed placed at more than 1million transactions per second. The speed edges almost all the leading platforms by huge margins, for instance, Bitcoin 1.0 has the capacity of 4 tps while Ethereum 2.0 is limited to 10 tps.
The system has openness to a variety of dApps especially those which have an affinity for high transaction rates. Good examples include big data, P2P economies and IoT.
The cryptocurrency is currently placed at $21 million in terms of market cap, a $10 million trading volume and has a total coin supply of 10 billion of which 748 million are in circulation.
The price is currently set at $0.03.
Why QKC is one of the best cryptocurrencies to invest in 2018?
The system’s remarkable scalability through the revolutionary Sharding technology promises one of the most efficient platforms ever to be devised in the cryptocurrency space.
This attribute combined with a decorated portfolio that demonstrates commitment to the key principles of security and decentralization, makes it one of the most promising cryptocurrencies.
Future prospects of Quarkchain
Development of the platform started in the second quarter of last year with initial efforts concentrating on research into the scalability of blockchain and related issues.
February 2018 witnessed the release of the white paper. By March, the first version the wallet and testnet had been released.
The development team is currently augmenting testnet 1.0 and smart contracts. The last quarter of this year is expected to bear the long awaited Smartwallet, QuarkChain Core 1.0 and the mainnet 1.0.
By the second quarter of 2019, the team expects to produce the second versions of both the Quarkchain core and Smartwallet.
Matrix is a blockchain platform aiming to address key flaws associated with blockchain since its invention.
The challenges include reduced transaction speeds, unsecure smart contracts, programming constraints associated with smart contracts and lack of flexibility.
The Matrix project aims to come up with a blockchain platform that incorporates Artificial Intelligence to address the key challenges. It is considered the fusion of AI and blockchain technology to produce a cryptocurrency that offers augmented transaction speeds, greater accessibility, enhanced security and high flexibility.
The platform is still under construction and is expected to reach its full potential in January 2020.
The Total coin market cap stands at $35.6 billion whereas the Trade Volume, Total supply, Total in circulation and the current price are $4 million, $250 million, $150 million and $0.2 respectively.
Why MAN is one of the best cryptocurrencies to invest in 2018?
The blockchain platform definitely promises one of the most advanced platforms capable of enhanced scalability and a myriad of other special capabilities.
It may not boast a huge market cap or a highly impressive price relative to other coins but the future capabilities such as AI-secured intelligent contracts and several big data applications should boost its popularity among developers and crypto investors which might imply a great crypto for consideration.
Matrix Future prospects
The Matrix project has been planned based on clear objectives reflected in the four main stages of the project, each with its own distinctive characteristic.
The stages include the Genesis which commences in September, Age of Speed, Age of Civilization, and the Age of Wonder. All stages have key features that they are expected to add to the platform.
For instance, December should see the addition of a proof-of-work and proof-of-stake hybrid mechanism whereas 2020 should see the project coming to its conclusion with addition of the more advanced big data applications and mining IC’s.
Key tips to find the best cryptocurrencies to invest.
Having looked at the major players in the cryptocurrency space for 2018, let us now look at some of the best practices behind successful cryptocurrency investments.
1. Follow the market
The cryptocurrency space is no place for blind guessing. Any cryptocurrency is a highly volatile product and things can change quickly following a number of events, which means that you need to stay as informed as possible.
It helps to at least follow all the important parameters including price, trade volumes, and market caps while comparing cryptocurrencies.
On top if that, you also need to stay updated on what’s happening around the cryptocurrency world as prices can be influenced by factors such as administrative decisions made by regulatory authorities.
For instance, following the news that the SEC denied certain ETF proposals there was a subsequent dip in the price of Bitcoin and the reverse is expected to happen following any go ahead from the regulatory body.
If you don’t really have the time to obtain a personal in-depth review, subscribing to trusted sites which provide well researched and relevant news and updates on the trend of the prices can go a long way in keeping you informed.
2. Study the project
With a myriad of projects, all promising great things to come after you get signed-up, it may be tempting to just blindly fish out one of the projects from the group.
The disadvantage of this is that you may end up taking up a project that doesn’t suit your needs. The fact is that these projects differ in their nature that while some are suitable for most beginners, others may be the best choice for experienced and skilled individuals.
Additionally, you may find out that while some projects focus on a particular aspect of cryptocurrency such as privacy or transaction speed, others may have a more generic approach to provide a wide range of security.
This necessitates your effort to define your needs then choose the platform that has the highest likelihood of providing you with the best solution.
Key tips to follow when investing in cryptocurrencies
Let us now consider some of the key points that should serve as beacons of best practices after the decision to get rolling with the investments.
Consider Investment percentages
Though there is always a form of risk with Investments, it is certainly different from gambling.
Investment should be a systematic and logical process that should protect your investment to the utmost level.
Experts have proven and continue to demonstrate that one ought to diversify and allocate a particular percentage of the portfolio to each cryptocurrency while making sure that the investment is not beyond 20 percent of the capital.
This helps you to stay on your feet even if the outcome didn’t come out your way.
Long term investments
The major characteristic of long term investments is that they involve investment for long periods until designated conditions are satisfied.
The following points should go a long way in helping you invest on a long term basis.
- Consider the cryptocurrencies which are established to provide more long term leverage. Upon establishing the dominant cryptocurrencies, determine how you would like to place your investments.
- Consider the mode of investment: In this case, you need to know if you will invest based on time or value.
- Establish how you will withdraw your gains: You need to establish whether you will withdraw gains based on time, as in at certain periods of time, or based on the value, as in a set percentage of your particular fiat currency.
Short term investments
As a short term investor, you are expecting to hold your investments for short periods of time which could be minutes, hours or days. Let’s review some of the best practices.
– Consider the cryptocurrencies with short to medium term benefits and set particular criteria in relation. This could be the total market cap, daily price and volume.
– Establish clear and concise conditions for taking your gains out. This could be a specific percentage relating to your fiat currency.
– Always have goals in the form of profits spread over specific periods of time.
To sum up, choosing the best cryptocurrency for your investment needs is one of the crucial steps in making the most out of your decision to invest in cryptocurrencies.
Achieving this step is a question of having relevant knowledge relating to the best cryptocurrencies in 2018 along with practical tips to keep you in line with the fundamental principles in the investment process.
Disclaimer: The opinions offered in this article only reflect the author’s point of view. From Crypto Economy we recommend doing the proper research before making investment decisions.