Things to consider while investing in Crypto for the first time
Investing In Crypto For The First Time? These Are The Coins You Must Consider
The top cryptocurrencies in the market will never cease to grow and will continue to attract several potential investors owing to their huge name, popularity, and benefits. However, they also come with a price. To be able to invest in renowned cryptocurrencies like Bitcoin and Ethereum, the capital required would also be larger. This may not bode well with many new investors. Especially if you are a novice, assigning large sums of your hard-earned money into a sector that is not completely uncovered yet and is volatile may seem daunting. Here is your guide to investing in cryptocurrency if you are a first-time investor.
Things to keep in mind before investing:
- Research – Conducting your research before investing any money would be primary. The trends and patterns are uncertain but reading and educating yourself will give you an idea of the current prices.
- Don’t fall blindly for trends and FOMO – Proceed with caution and do not buy cryptos simply because you can see the prices rise quickly and steeply. For example, the value of 1 Dogecoin to INR may be witnessing a sharp surge which may lead to several investors scrambling towards it. The value falls as quickly as it rises.
- Strategize – Instead of putting money haphazardly into different assets, you can strategize and plan out the various areas that might provide good returns. Keeping a diverse portfolio with only 5-7% of the amount allotted to cryptos would be a good way to start.
- Buy cheaper coins to start – Another major factor to consider would be the coins you are looking to buy. Prefer stablecoins or cheaper ones to start with as, even if they fall, the loss you may incur won’t be much.
Here are the coins you should consider if you are buying cryptocurrencies for the first time:
- Tron – The price predictions for this crypto are seemingly positive in the long and short term. A major advantage with this coin would be that the price against TRON to INR is relatively cheaper. Purchasing this coin in the current scenario would be a good idea as the traction increases, the prices are also expected to rise.
- Ripple – XRP is considered to be a utility coin that also has a blockchain network that is set up for the easy facilitation of cross-border transfers with ease. Additionally, this network is supported by several large banking institutes and companies. With a negligible transaction rate and speedy transfers in a mere matter of seconds, ripple is only expected to grow.
- Litecoin – This coin is deemed as Bitcoin’s rival. The creators developed this coin with the hope that this coin would eventually be used to purchase daily goods and services with ease. The network is said to be significantly faster than bitcoin and is, therefore, more attractive for businessmen and merchants.
- Tether – This coin is a great suggestion for beginners because it is relatively ‘stable’. This means that the value will not fluctuate as much as the other coins since it is attached to the price of the denomination of the country. If you are someone who does not want to partake in risky investments and if you have a lower risk tolerance, this would be the way to go.
- Binance coin – Recently gaining popularity, this coin, BNB, originally operated on the Ethereum blockchain. It is designed by the Binance chain and has a limit of 200 BNB tokens. It is not super expensive and therefore, is desired by Indian crypto enthusiasts.
As you learn more, you can grow and plan your risk tolerance to be able to become bolder in your choices. Once you start, you are bound to be in for the long run. However, these coins and steps would be a good way to begin your journey of investment for making money.