Investing in Crypto the Smart Way

It’s been a while since cryptocurrencies like Bitcoin hit the roof with their market value, so does it make sense to invest in cryptocurrencies now? Well, it does make sense and they can be quite profitable too, as long as you are smart with your investments.

If you are a beginner who is looking to start with investing and trading in cryptocurrencies, the following should provide a decent guideline regarding how to proceed smartly and without taking too many unnecessary risks.

Communications is Top Dog in ICO

ICOs in communications is currently enjoying the top position with a huge percentage (33.6%) of the market share – that is more than double the market share of its closest competitor, which is financed at just 14.8%.

Therefore, if you are going to be investing in ICO, communications, and finance are likely your best bets in 2019.

Developer Platforms are Still More Valuable

While ICO investments in communications and finance do have the potential to be profitable, investments in developer platforms like Ethereum, Litecoin and especially EOS continue to be more successful in real practice.

Which Cryptocurrencies Should You be the Most Concerned With?

The list of the top cryptocurrencies will continue to change and, depending on which site you visit, the recommendations will differ quite a bit. It is better to keep a constant eye on the market capitalizations and price changes via a constant feed. Check out Coins.live where they compare all the top cryptocurrencies by market capitalization and price in real time with live updates on the ups and downs, as and when they happen.

For instance, just by visiting the site right now, you would be able to see that the top five cryptos at the moment are Bitcoin, Ethereum, XRP, Litecoin and EOS.

More importantly, we would suggest investing in the coins that have shown the most promise in the last few weeks or months, rather than simply investing in Bitcoin or Ethereum, because they are not as profitable as they once were.

Aside from real-time updates, Coins.live also has the all-important crypto portfolio tracker, which is an essential tool that no cryptocurrency trader can do without.

Be Prepared for the Market’s Volatile Nature

If you are a beginner, the ups and downs of the crypto market can scare you into making quick decisions that are often the wrong ones. Prepare yourself for these by acknowledging and accepting the fact that you are entering a highly volatile market which can change at any time, and not always with sufficient warning signs.

This is why it is better to make small investments to begin with and get more used to how the market operates first.

Invest in More than Just One Coin

This is a tried and tested method that smart investors use to invest anywhere, and it applies to crypto investments as well. Divide your budget and invest it in more than just one place because it’s wise and it helps in the creation of a good crypto portfolio. Do your research and decide on which you think would be the best cryptocurrencies and/or ICOs to invest in multiple different sectors before putting your money in some of them.

Now that we have discussed a few important aspects of making smart crypto investments, it is time to pay security a mind too. Do take smart precautions in protecting your crypto coins, because they can be hacked, stolen or lost quite easily.

Use a new and separate email just for trading and make sure that most of your coins are protected in a cold storage wallet. Hot wallets are convenient of course, and they are useful while tradin, but do not keep the bulk of your cryptocurrencies in a hot wallet.