Profitable cryptocurrencies for investments. Investments in cryptocurrency: where to start, where to invest money, possible risks

Cryptocurrencies appeared less than ten years ago, but in such a frankly short period of time they were able to become the main contenders for an alternative to the standard financial system. If you want to be the lucky ones who will benefit from the hype around digital coins, you need to consider how to invest in cryptocurrencies now.

Investing in crypto money does not make unless lazy. People have already realized how promising this industry looks in terms of benefits. But you can invest money not in the coin itself, but, for example, in its production. At the same time, the return on such an investment will be no less high. Although first of all we need to figure out where to start in order to get a decent reward.

In order to invest in cryptocurrency, you need to transfer this procedure from the category of fantasy to the category of a promising source of income. To do this, you need to develop a step-by-step plan for how you intend to invest in cryptocurrency and what benefits you want to get from it. The main thing is not to clap your ears. While some are thinking about where to invest, others are already actively investing and making money on it.

Is it profitable to invest in cryptocurrency

Today, the question of whether it is worth investing in cryptocurrencies is not even discussed. If it wasn't, we wouldn't even start writing this. But there are nuances, so let's look at the facts that make investing in cryptocurrencies so profitable.

The main thing in investing is to gradually go towards your goal. If you build a strategy correctly, then making a profit will only be a matter of time.

Investment types

If you decide to invest in cryptocurrencies in 2018, you need to decide which type of investment to invest in. Even the investment amount is calculated based on this fact.

So, let's look at a small list of types of cryptocurrency investments:

In buying coins for a long time

The easiest way to invest in cryptocurrencies is to make a long-term investment. Buying cryptocurrencies long term is considered to be the safest method of making a profit. All an investor needs is to wait until the coin rate rises. Usually this strategy is called Buy&Hold. Translated from English, it means "buy and hold."

In principle, it is difficult to come up with a more relevant description of such an investment strategy. To make a profit, it is enough to purchase one or several promising coins and wait for their rate to rise. And this investment is safe because nothing else is needed from the user. Just invest in the future, without making any extra gestures.

The scheme of this strategy can be most clearly described in points:

The Buy & Hold strategy is good because investors who invested rubles in 2018 can already make a profit of 1000% or even more in 2019. This is especially true of top currencies, which are rising in price at a rapid pace. Judge for yourself – a year ago, Bitcoin was barely selling for a thousand dollars, and by the end of 2017 it could be sold for 17-18 thousand dollars. Given this, the optimal investment period is about 1-2 years. And don't panic if the price moves against you. This is a natural phenomenon for cryptocurrencies.

In mining

Not everyone can afford to invest in mining. If we talk about coins like Bitcoin or Litecoin, here the amounts for the purchase of equipment are six figures. Naturally, only large investors can afford such investments.

But there is an alternative - buying ASIC devices or creating farms to direct their power to work in the pool. Perhaps such a strategy is still viable. However, consider the energy consumption of such equipment. Because of this, the profit from block mining can remain very conditional, or even go into the red. Then even the payback of such an investment will not be discussed.

In addition, the difficulty of mining is constantly increasing, in connection with which the miner will have to constantly invest more and more money in order to meet current position of things.

So, let's calculate how much a typical farm can bring in for production, say, ZEC. To do this, you need to take the following data:

• The farm costs around $ 1,500 (if you assemble a simple configuration, you can invest $ 1,000);
• Cryptocurrency rate for this moment is $ 260, although on average it stays in the range of $ 200-300;
• The farm operates 24/7/31 per month and produces 0.14-0.15 ZEC;
• The performance of a crypto farm of 2 cards is 450 Sol;
• Payment of electricity within 20 dollars a month.

We draw conclusions whether it is profitable to invest money in a mining farm. The calculation shows that at the current rate of $ 260, the profit per month will be about $ 40. Minus the electricity bill and you're left with $20. As a result, a $1,000 farm will pay for itself in only 50 months.

Of course, the rate can rise, as it did in the winter of 2017-2018. Then the cost of one coin was more than 700 dollars. But it is most effective to invest more money and make a more powerful farm. Then its payback will increase, which means that the investment will be more successful.

to cloud mining

Now investments in cloud mining of cryptocurrencies are much more popular than the classic mining of coins. And you don't even need to explain why. After all, all the costs of maintaining the miners' farm do not apply. This is a simplified mining that frees the person who invested in it from paying electricity bills, round-the-clock control, settings software etc.

But cloud mining has a lot in common with classic earnings. For example, it also comes at the expense of computing power. But you pay only for it and give a small percentage for the service. And the data centers themselves with powerful equipment can be located in another corner of the world.

Advantages of cloud mining:

• Relatively high returns. Many services provide return on investment in the amount of 200% to 400% per annum. Given the rise in the price of cryptocurrency, the prospects are very good;
• The companies have an official status, because their services are of high quality, and the purchased tariffs are carried out on the same conditions that were originally announced;
• Profits from cloud mining can be quite effectively predicted. Since indicators of the average complexity of the network and course are used;
• On one service, it is possible to purchase contracts for mining several popular cryptocurrencies. This allows you to protect yourself if some investment is threatened due to a fall in the coin rate;
• Possibility of automining;
• Profitable referral programs, according to which investors can also receive additional income.

But before investing in cryptocurrency cloud mining, you should also remember about the risks.

• There is a possibility that the rate of the coin you invested in will fall;
• The seller of contracts may be dishonest;
• The site will be hacked;
• There will be a sharp increase in the difficulty of mining the selected cryptocurrency.

In general, you need to properly weigh all the risks and prospects before investing big money.

In the creation of new blockchain projects

Perhaps ICOs can be called the most difficult investment tools. If you look at the results of last year, then projects that conduct ICOs have raised more than three billion dollars. And in 2018, the prospects for the development of new projects are even better.

Investing in this industry has become so popular due to the availability of such projects. It only takes a few dollars to become an investor. But their main problem lies in the wide availability of ICOs. Because of this, it is easy to find frankly crude projects or even fraudulent schemes on the market. As a result, we have disappointing statistics, in connection with which the vast majority of projects will disappear after a while.

Therefore, investing in ICO is an extremely dangerous occupation. Especially if the founders of a startup are not able to confirm the functionality of the product. Investors can only rely on open information presented on the project website. But no one gives guarantees that this information is true.

Although a successful project choice does not guarantee its high yield. ICOs are often overpriced. That is why the cost of the cryptocurrency is rapidly going down immediately after its entry into the exchange.

But we cannot ignore the fact that ICOs have a number of important advantages:

Invest a large amount in cryptocurrency ICO is not safe. Therefore, before that, focus on studying the project team. The more experienced they are, the more serious the project.

The best cryptocurrencies to invest

And now let's look at which cryptocurrencies to invest in in 2018. The top is formed on the basis of .

bitcoin

When people think about which cryptocurrency is better to invest in, the first thing that comes to mind is Bitcoin. This cryptocurrency appeared first and became the beginning of a new financial industry. Bitcoin is currently the most valuable investment, even though it has been around for almost a decade.

Bitcoins are safe, mobile and popular. Over the past year, the price of this cryptocoin has grown significantly. Yes, the technology is evolving. Not least because many companies have begun to work on the basis of the blockchain. It is the Bitcoin blockchain that has become the reason for such rapid growth.

Looking at cryptocurrencies, the $141 billion is nearly three times that of its closest competitor. At the same time, far from all the coins out of the possible 21 million have been issued.

The price of the cryptocurrency at the moment is 8 thousand dollars. This is not her best indicator. Back in January 2018, the cost of Bitcoin reached almost 20 thousand dollars. That is, there is an upward trend, it remains to wait for the right moment.

Ethereum

The second coin by capitalization is Ethereum. The brainchild of Vitalik Buterin, powered by the Ethash algorithm. It was created in 2015 under the code name "Bitcoin 2.0".

The peculiarity of Ethereum is that new ICO projects can be created on its basis. This is possible thanks to smart contracts. This technology has become a breakthrough in the field of cryptocurrencies. Thanks to her, Ethereum has become much more technologically advanced and promising than Bitcoin. Therefore, having a desire to invest in a crypt and choosing which one, you should opt for Ethereum. Transactions are confirmed very quickly. Smart contracts are like arbitrage. However, no commission is required.

Ethereum (ETH) is not the platform itself, but its currency. If you want to take advantage of the system, then you need to invest in cryptocurrency. In any case, you will not lose, since the technology of its use is one of the most promising in the world. To begin with, many giant companies such as Microsoft, Sberbank, Jp Morgan cooperate with Ethereum. And its developer Vitaly Buterin met with the President of the Russian Federation. During their meeting, they discussed the prospects of the project.

Today, the capitalization of Ethereum is 56 billion dollars, although many experts argue that in 2018 it can even surpass Bitcoins. But judging by the price of the altcoin, which is $570, the rate is far from what Bitcoin offers. But it's good for investing. Everyone can buy a few coins.

Litecoin

Litecoin is one of the first forks of Bitcoin. In order, this is the second full-fledged cryptocurrency that appeared in the world. It was created in 2011, and since then it has occupied leading positions in the rankings.

This coin works on the Scrypt algorithm. In addition, it has many improvements over its parent. Let's consider them in more detail:

But Litecoin is still not ready to be a mass cryptocurrency. It is much more efficient to use it for investment and speculation.

eos

The Eos project has not even had time to really launch, but is already gathering a lot of gossip and speculation around itself. Nevertheless, this cryptocurrency is in almost all ratings of promising tokens, which means that you can invest in it.

But calling a coin good is far from everything. Let's take a closer look at what the prospects for this project are based on:

bitcoin cash

This coin appeared as a result of an unexpected fork of Bitcoin that occurred on August 1, 2017. With his appearance, he caused a lot of controversy. For example, people argued that this fork was not needed at all. Although, as the further development of events showed, the new coin nevertheless decided some actual problems associated with Bitcoin.

In particular, the code has been improved, making the fork more accessible to the public. It can be used in bulk, which the Bitcoin network could not afford. You can invest in the coin in question due to the following features of Bitcoin Cash:

• Immediately after the launch of trading on exchanges, the new cryptocurrency was in third place in terms of capitalization. Now the coin is in fourth place with a capitalization of more than $16 billion;
• The BCC cryptocurrency exchange rate reaches about a thousand dollars. Experts say that the price will rise. But at the same time, the rate reached four thousand dollars, and now it has fallen;
• Immediately, all the leading cryptocurrency exchanges included this coin in their list. This also adds to the popularity of Bitcoin Cash as an investment asset.

In addition, do not forget about the connection with Bitcoin, because everything related to this cryptocurrency is becoming more expensive right before our eyes. Although it is still better to refrain from large investments.

Ripple

Ripple is one of the oldest cryptocurrencies. It officially entered the market in 2012 as an alternative banking system. Ripple does not exclude the old financial system and adjusts it to new circumstances. Mining or other types of extraction of this coin are not provided - the entire volume of tokens was released immediately. This raised the capitalization of Ripple to unprecedented heights.

And after Ripple became interested big banks, his popularity began to grow rapidly. The rate has grown from $1 to $3.5 in just a week. But today the coin is worth even less - only 80 cents. This means it's time to invest while prices are so affordable. After all, the more banks introduce this technology into their work, the more expensive the coin will be. Then it will be too late to invest in it. The size of the investment will grow significantly and the deal will no longer be so profitable.

Some crypto enthusiasts say that payment system Ripple has a chance to be an alternative to SWIFT. Already such large world banks as BBVA, Mizuho, ​​Mitsubishi UFJ, UniCredit, UBS and Santander work with this system. And among the most famous investors are Accenture, Andreessen Horowitz, Google Ventures and Seagate.

Neo

NEO did not immediately receive such a name. Previously, this cryptocurrency was called Antshares, although its alternative name “Chinese Ethereum” has been circulating on the network so far.

• Chinese startups did their best and created a very interesting project which is constantly updated and improved. In particular, the blockchain nodes were upgraded, the technical documentation was updated, and even the stock ticker was changed. Well, one of the latest achievements is the successful transition to the NEO 2.0 smart contract system;
• Market capitalization figures are constantly changing. Once the coin occupied the 7th position in the ranking, but now it is 10th. Nevertheless, such jumps are normal for this cryptocurrency. At the moment, the capitalization is 4.7 billion dollars. At the same time, the total number of tokens is limited to a hundred million, but only half are in circulation.

But the project is actively developed. This has already yielded results through cooperation with well-known startups. The largest of them are Bancor, Coindash and Agrello. But the most interesting is the Chinese startup Red Pulse. It will be built on NEO 2.0 smart contracts. Well, another interesting development is the Elastos operating system.

How to properly invest in tokens

Considering how to properly invest in cryptocurrencies, you need to find out the features of investing in the cryptographic industry. Proper investment involves several factors:

1. Selected cryptocurrencies. There are hundreds of tokens that could attract the attention of investors. Do right choice under such circumstances is very difficult. That is why above we have given a list of the most reliable coins. Investing in them is almost a 100% guarantee of profit.
2. Potential. Coins appear quickly, but some projects disappear just as quickly. To invest money, you need to choose a cryptocurrency that will last more than one month.
3. Income. Choosing where to invest in order to invest in cryptocurrency, investors are interested in the money they can get from it. It is important to choose coins whose rate is now growing, not falling.
4. Capabilities. In other words, it is the initial capital. People have different financial opportunities, and the investment must be made taking into account your real income.

The main thing is not to spend more than you can afford.

Risks of investing in cryptocurrency

The risks associated with investing in cryptocurrencies are more relevant than ever, because no one can guarantee the effectiveness of these investments, and compensate for losses.

Let's take a closer look at the main risks:

• Possibility of theft. Hackers don't sleep. They regularly hack exchanges, pools and cryptocurrency wallets. Even if you have the most secure wallet, there is always a risk that money can be stolen;
• An ambiguous attitude towards cryptocurrencies on the part of official authorities. Digital coins have received official status only in a few countries. In most states, the status of tokens is uncertain;
• High volatility. For cryptocurrencies, pumps and dumps are common. Speculators deliberately raise and lower the price of popular cryptocurrencies. This is how they make money, and ordinary investors lose their investments;
• The risk of "dumping" money ahead of time. Cryptocurrencies do not official exchange rate. Coins rise and fall regularly. And sometimes the jumps are so sharp that investors dump coins, afraid of losing profits. That's why you shouldn't panic. To make a profit, sometimes it is enough just to be patient.

The investor who does not dream of making a million is bad. And for this, it is necessary to correctly select tools for investments. AT last years investing in cryptocurrencies. Token prices excite minds. Take at least - its value at the beginning of 2017 barely reached a thousand dollars, by the end of the year 1 BTC breaks all records, having exceeded the mark of 19 thousand USD.

Why is it profitable to invest in cryptocurrency?

It's trendy, it's hype, it has a lot of potential. Answer the question “Why is investing in cryptocurrency a profitable business?” can be long. Even housewives are already trying to earn money.

When the tokens skyrocketed at the end of November, the exchanges simply could not withstand the influx of visitors and experienced disruptions.

Many are inspired by the examples of those who bought coins on the cheap, and today already have a fortune in the millions. Traders are attracted by the high volatility of cryptocurrencies - sharp ups and downs in the exchange rate allow you to make good money on the price difference.

Here are a couple of examples of changes in the cost of tokens over the year:

• Ethereum: December 2016 - 8 USD, end of 2017 - almost 800 USD.
• Litecoin: end of 2016 - 4 USD, December 2017 - 300 USD.
• Monero: December 2016 - 13 USD, December 2017 - 390 USD.

Nevertheless, we will neither encourage you to invest in cryptocurrencies, nor dissuade you from doing so. We will try to impartially consider from all sides the opportunities that promise investment in cryptocurrencies and the risks that they are fraught with.

4 areas of investment

There are different ways to invest in cryptocurrencies. Everyone finds a way to their liking.

To tokens

• short-term trading;
• long-term trading;
• purchase and storage.

The easiest way is to buy and store coins. You buy cryptocurrency at a low price and forget about it for at least a couple of years. An example is bitcoin. Those who bought BTC for a few hundred dollars can now sell it for thousands of dollars. What can we say about those who purchased tokens at the very beginning literally for cents - today their profits are in the millions.

What to look for when choosing coins:

• market capitalization;
• dynamics of price changes;
• whether the system is based on an idea useful to society.

To buy cryptocurrency, we use exchange services or specialized exchanges. The second option is suitable for short-term, as well as long term trading. However, here you will have to work hard. To make money on the difference in rates, you need to be able to analyze the market, constantly monitor the latest events.

In mining

• purchase of equipment and independent mining or in pools;
• cloud mining.

Investing in cryptocurrency mining has recently been a very popular way to invest money. At one time, even a video card could not be purchased for ordinary needs, since the miners sorted out all the store stocks clean.

Today, with the increasing complexity of token mining, this activity no longer brings the expected income. Mining on a home computer is simply unprofitable, more money will be spent on paying electricity bills.

To purchase specialized equipment and create a mining farm of acceptable power, investments of several thousand dollars will be required. The payback of such investments will take at least a year and a half.

If there is not much money, but there is a desire to try your hand at mining coins, you should pay attention to. The principle behind this approach is simple. You rent from large companies the amount of mining power you need. The equipment mines on the side, and coins drop into your account.

In the development of mining equipment

This method is suitable for large investors, since the amounts in this area start from 6-digit amounts. And not every manufacturer will allow the possibility of investments from outside.

In the development of new projects based on blockchain

ICO today is an extremely popular way to raise money for a project. The essence is simple - a startup, which is often only at the idea stage, issues its own coins and conducts the so-called initial placement tokens (ICO). Investors who believe in the project invest in these coins.

If the startup excels in the future, token holders can count on high profits, since the purchased coins will rise in price. They also often receive other additional bonuses in the system.

However, the risks in this area are also high. Many startups turn out to be outright fraudulent. There are those whose team simply did not have enough experience to realize their plans. In all these situations, investors naturally lose their investments. Therefore, without prior qualitative analysis ICO is indispensable.

Investing in cryptocurrencies - a quick start step by step

It is often difficult for beginners to figure out how to invest in cryptocurrency, what first steps to take for this, and therefore we will analyze the whole process in stages.

Choosing the right option

Mining, trading on the stock exchange, investing in ICO - see which method suits you best. Much depends on the available funds that you plan to invest.

Since cryptocurrencies are a high-risk instrument, invest only free money that you don’t mind losing. Never borrowed or set aside for important purchases.

If the budget is minimal, it is unlikely that you will be able to start mining by creating a powerful farm from specialized equipment or invest in bitcoin. Perhaps you should analyze the altcoin market and buy promising tokens, or try your hand at cloud mining. Those who do not have free money at all should start with cryptocurrency faucets.

Analyzing the situation

After choosing the investment area, we analyze the market. You should immediately be prepared for the fact that you will have to constantly analyze the situation if you plan to seriously earn money in this area.

The basic foundations of the crypto market, and in the future a deep study of all the nuances of its functioning, news, analytical materials - without all this, it is unlikely that you will be able to stay in the black for a long time. If you are going to trade on the stock exchange, we study the ratings of the sites, trading strategies.

Without a thorough analysis, you should not even start investing money.

Getting a wallet

When working with cryptocurrencies, in any case, you will need a cryptocurrency wallet. There are different options on the market: online or desktop wallets, applications for installation on mobile devices and hardware ones. The latter are great for long-term storage of tokens.

We purchase tokens

You can buy bitcoins or other currencies both with the help of exchange services and on specialized exchanges. Before purchasing tokens, it is important to read the terms and conditions trading platform- methods of depositing and withdrawing funds, the size of commissions. The most famous exchanges:

• EXMO;
• Kraken;
• Bittrex;
• Bitfinex;
• Poloniex.

It is not worth storing tokens on exchange accounts for a long time - withdraw them to your personal wallets. The number of hacks of cryptocurrency sites is growing every day. Also coins with rare exceptions can be mined. As for ICO, coins are purchased directly on the project site.

Risks of investing in tokens

It is not for nothing that investing in cryptocurrencies is considered the most risky way to increase capital. The probability of being at a broken trough here is extremely high.

One of the main dangers is the theft of funds. Hacker attacks on exchanges, mining pools or wallets have already become commonplace. As a result, some sites are forced to declare bankruptcy. If the money is returned to users, it is often far from being in full.

Let's take such a fact as the ambiguous attitude of regulators towards cryptocurrencies. So far, bitcoin has only been recognized as legal tender in Japan. In many other countries, cryptocurrency can be completely banned at any time. And if not banned, then even such a moment is not clear how to pay taxes on it, for example, if this is your main type of income.

There are already cases when banks or well-known payment systems, such as Western Union, block accounts or individual transactions if they discover that money is being transferred to cryptocurrency exchanges.

High volatility is also worth noting separately. In cryptocurrency trading, pumps and dumps are a frequent phenomenon, since this area is not regulated by states in any way. Speculators negotiate among themselves and artificially drive the price up or down. Separate crypto-exchanges are already starting to fight this phenomenon on their own.

Sometimes it takes nerves of steel to survive a token rally, when the price rises sharply in one day, and then dives down no less steeply. Many inexperienced investors in a panic begin to dump coins in order to save at least some of the money.

In fact, it often turns out that the only thing that needed to be done was to wait it out.

Benefits of Crypto Investments

Let's briefly go over the advantages of investing money in digital currencies:

• You can start earning with a small starting capital.
• Cryptocurrencies are in their infancy and you can still jump on the speeding train.
• Cryptocurrencies are based on technologies that can completely change the world we are used to.
• Cryptocurrencies have already shown impressive growth in the value of coins. At the beginning of the article, we gave several examples of the dynamics of price changes.

The best cryptocurrencies to invest

In which cryptocurrency to invest - everyone decides for himself based on certain criteria. Experts advise first of all to pay attention to tokens from the top 10 by capitalization. Let's take a look at the top five.

bitcoin is the clear leader in the world of digital currencies and, it seems, is not going to give up the palm. Stable breaks all records for the price despite numerous pessimistic forecasts. Today it is trading at a price of more than 17 thousand dollars per coin.

Ether- has been confidently holding the second place for a month now. The platform, which operates on the basis of smart contracts, allows you to create decentralized applications. The cost of one token is currently about $700.

bitcoin cash- bitcoin fork. Separated from the main network and took on a life of its own in August of this year. In terms of value, it is an order of magnitude inferior to its progenitor - one coin is traded at $ 1,800.

Ripple- on the wave of positive news, Bitcoin Cash periodically pushes from third place, but then rolls back to the usual 4th position in the ranking. Ripple actively interacts with banking institutions different countries peace. Integration of its network with existing payment systems makes it possible to speed up payments by an order of magnitude and reduce transaction costs.

Litecoin- confidently closes the top five digital currencies. It was one of the first cryptocurrencies created as an alternative to bitcoin. It operates on the basis of similar algorithms, but at the same time, payments in the Litecoin network are faster.

Of the other tokens, attractive in terms of investment are:

• Monero is a cryptocurrency in which transactions are characterized by maximum anonymity;
• IOTA is a token designed for the so-called Internet of Things. In other words, for smart devices connected to the Internet, which independently solve everyday tasks.
• Golem is a system based on the original idea of ​​leasing computing power.
• NEM is a platform that positions itself as the "New Economic Movement". Large banks from different countries have already become interested in the technology of the system. With its help, you can not only conduct transactions, but also create new assets, send messages.

Investments in cryptocurrency - reviews and prospects

You will not find an unambiguous opinion on the Internet about investing in cryptocurrency. Views on the world of digital coins sometimes differ radically.

Sayings that cryptocurrencies are a bubble that will burst at any moment have often been heard lately. Cryptocurrencies are often compared to gambling. At the same time, many sincerely believe that Bitcoin will cost at least $100, or even $500,000 per token in the coming years. And all this is said not even by ordinary users, but by well-known bankers, large investors who turn over millions, or even billions of dollars.

For example, Jordan Belfort, one of the most successful stock brokers in the past, whose life events formed the basis of the film The Wolf of Wall Street, considers bitcoin a colossal scam that is guaranteed to crash. And Israeli Prime Minister Benjamin Natanyahu, on the contrary, believes that the usual Bank operations over time, they can be replaced by bitcoin transactions.

Who will be right, time will tell. To date, the capitalization of cryptocurrencies has already exceeded 600 billion dollars, of which almost half falls on bitcoin. Entire fortunes are earned on cryptocurrencies, and using different options: both on mining or stock trading, and on the classic purchase and further long-term storage of coins.

According to the latest research, in 2017, specialized hedge funds that focus on cryptocurrencies were invested about $2 billion. AT next year analysts predict that even central banks leading countries of the world.

Investing in cryptocurrency is a way of forming passive income using cryptographic digital money. To get a high income, it is important to make the right choice among the many analogues. Beginners usually start with Bitcoin, although there are other coins that you can look at (the total number of cryptocurrencies exceeds a thousand). To compose investment portfolio without risks, we offer to master the investment strategy.

Where to begin

To get started, choose a cryptocurrency and create a wallet. Register on the exchange or on several sites. Acquire crypto by waiting time to buy at low rate. Further, it is recommended to move the currency to the wallet for greater security - especially if you are not going to sell / exchange in the near future. Now just wait for the coins to rise in price or try to speculate, earning on short-term price fluctuations.

Is it profitable to invest in cryptocurrency

Such an investment is considered profitable, because, at least, unlike ordinary money, virtual coins cannot be stolen - money is withdrawn only after the introduction of a private key. The crypto is changed, including for goods. Even when transferring several million dollars to another country, the commission is withdrawn in minimum size- 0-5 dollars. It does not use a central server (which can be hacked). But the main advantage is the growth of the exchange rate: for BTC in a few years, it rose from $10 to $10,000.

Investment types

Investment is divided into three types depending on the length of the investment period:

• short-term deposits;
• medium-term;
• long-term.

Most beginners, when making their first investments, try not to take risks. In their opinion, it is better not to keep certain coins for more than a month. However, here you need to understand that with a competent approach, a long-term investment will allow you to get much more significant profits. The types of investment also include mining and the creation of new blockchain projects.

Buying coins for a long time

Long-term investments are considered to be investments in cryptocurrency in 2018 for a period of more than 6 months. Quotes of digital coins increase / decrease several times in a couple of days - in the absence of experience, this can lead to psychological overwork. The main thing is to learn how to choose the most promising digital coins.

Mining

The available capital is invested in mining devices. You will need a powerful PC or ASIC equipment. At the same time, it is necessary to take into account the purchase of equipment (which can be quite expensive), increased electricity costs, an approximate change in the rate of digital money being mined, and payback periods.

cloud mining

The user earns money thanks to computing power without his own equipment: cloud mining of coins involves renting equipment from services with powerful cryptocurrency mining farms. Among the sites popular in 2018 are IQ Mining and HashFlare.

Creation of new blockchain projects

Block chain is translated as "chain of blocks". Peculiarities:

• the database is located directly on large numbers computers;
• new blocks are constantly being created, each of which includes a group of records and a title;
• the formed block is checked by other network members, and it is attached to the end of the chain - after that, changes cannot be made.

Promising cryptocurrencies in 2018 for investment

Not every new cryptocurrency deserves attention. Many are released only for speculative enrichment. But general situation develops in a new promising direction, providing effective commercial products. In 2018, the future of cryptocurrency is associated with blockchain technology. Given this, the best cryptocurrencies to invest in 2018 are Bitcoin, Ethereum, Litecoin and Eos. Let's consider them in more detail.

bitcoin

Bitcoin was announced over nine years ago. Many of the early contributors became dollar millionaires. Today, Bitcoin remains the first currency and sets the trend for the entire market. It is like a locomotive dictating the course for all subsequent cryptocurrencies. There are development prospects, because less than 1% of the inhabitants of the Earth still use bitcoin / other coins. This cryptocurrency for new investors is a reliable, although not too intensive way of earning.

Ethereum

The platform is designed to function through applications based on the Block Chain. Here, the internal currency is ether or, in other words, “ether” (abbreviated as ETH). They use ethers not only as units of account, but also for the so-called "smart contracts" - this is a special computer algorithm that ensures the execution of contracts in the blockchain; action here is allowed only after the necessary conditions have been met.

Litecoin

The coin was released in 2011. It was not new in the full sense of the word: it was an improved Bitcoin, with great potential in the commercial field. The people dubbed Litecoin "cryptocurrency silver". This crypt was created using the Bitcoin code. But, unlike Bitcoin, the speed of transaction confirmation is noticeably faster here. Commissions for transfers to Litecoin are also among the lowest.

eos

The coins saw the light in 2017. Eos token holders can sponsor the development of applications within the site. Another feature is the confirmation of bets using the DPoS protocol. This approach is regarded by many as a movement towards "technological democracy". Thus, the creators of Eos challenged the usual PoS. DPoS assumes that there are elected witnesses who control the security of the network.

How to properly invest in tokens

Experts, first of all, recommend thinking critically. The number of tokens now totals 1,500 items - this figure confuses even experienced investors. The currency included in the Top 10 has a fairly large value. Therefore, it is easier for a simple user to apply for a new group of tokens that have their own unique properties combined with a more affordable price.

Risks of investing in cryptocurrency

Some options for investing in cryptocurrencies are safer, others less so. If a trader understands the market and is responsible for own investments, then some unpredictable events rarely happen in the purchase / sale of digital coins. All currencies are different, and before buying any, it is recommended to find out if it appears on a safe exchange and if it is confirmed to belong to a well-known brand.

Reviews and perspectives

There are different reviews about investing in cryptocurrency. For example, they say that “we need to wait it out and prepare for further growth” or that “the wave that was in 2017 is unlikely to happen again.” To achieve results, such investments require a certain amount of patience. Cons: Bitcoin is too expensive for the average buyer - BTC sells for around $6,000. In any case, this market is not yet well known and has positive development prospects.

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Investing in cryptocurrencies is more popular today than ever. With a competent and accurate approach, the way of earning has a huge perspective. The current situation with the cryptocurrency market causes concern for investors, but experts are encouraging with good forecasts for 2019. Novice crypto investors want to know where to invest and which coins are the most promising.

Before investing in cryptocurrencies, beginners want to know how profitable it is and whether it is profitable at all. The answer is simple: if it does not generate income, there would be no hype around digital coins. To make investments in cryptocurrencies profitable, you need to have information and be able to analyze the market trend.

• Market expansion. New projects appear almost every day, they require money for development and are looking for investors. Over the 10 years of the existence of blockchain technology, thousands of types of coins have appeared, and this is not the limit. If the user does not find a suitable project for investments, it is worth waiting. Perhaps the idea will appear in the near future.

The main thing is to adequately assess the possibilities. There are always risks in investing, but if you develop a competent strategy and strictly adhere to it, you can reduce risks and increase profits.

Investment types

Before investing in cryptocurrencies, it is worth familiarizing yourself with the types of investment, which will allow you to navigate with the initial contribution:

• Invest in cryptocurrency as a project. The main profit from digital coins is with the creators. The Bitcoin code is open to everyone, thousands of new projects have been created on the basis of BTC. Anyone with knowledge and capabilities can do their own development. Alone, it is unlikely that something will work out, you need a strong team. To simplify the task, you can simply invest in a promising ICO project.

• Long-term investment in cryptocurrency. It involves the purchase of coins at the ICO stage and their further sale after the rate rises. Some investors keep digital coins in their account for years, and then make a profit that is thousands of times higher than the initial investment. A careful approach is needed: even cool analysts will not predict with absolute certainty the market trend for several months in advance. For example, in mid-June 2017, it was about three thousand dollars, and at the end of the year it reached $20 thousand. One can only imagine how much profit investors received who invested in BTC on time.

Long-term investment is the easiest and safest way to make a profit. An investor buys coins and waits for an increase in the rate. The method is considered safe because the funds are on the account of the holder, they cannot be lost. If desired, depositors can trade coins on.

The main stages and rules for novice investors:

1. Tool selection. Beginners should choose popular types of coins that are more stable and profitable. Previously, everyone bought Bitcoins, but now BTC is on the heels of competitors: Ethereum, Ripple, Monero.
2. Buying a cryptocurrency. After choosing a coin, we buy tokens on the exchange or in the exchanger. You need to get an electronic or other device (it all depends on the type of crypt). Before creating a wallet, it is important to make sure which coins are supported by the software. There are little-known but promising tokens that not all applications work with.
3. Waiting for a raise and selling it. If the market turned in the opposite direction from what was expected, you do not need to immediately get rid of the coins, especially if their sale will bring losses. The cryptocurrency market is so unstable that everything changes in one minute.

NEO

If the user has not decided which cryptocurrency to buy for further earnings, there is an opportunity to decide right now. recognized not immediately, but the ambitious project could not stand aside. Chinese developers are constantly improving the platform, recently updated the technical documentation, changed the stock ticker, upgraded the blockchain, which has a positive effect on the reputation of the network. The NEO cryptocurrency cannot be called stable. The coin goes up and down in the rating by capitalization. Today it ranks tenth.

The modernization of the project is bearing fruit. Collaborate with NEO large companies: Agrello, Bancor, CoinDash. In the future, the developers plan to introduce many features into the project that will increase the popularity of the network and the value of the NEO cryptocurrency.

Sites and exchanges where you can invest cryptocurrency at interest

A popular and reliable option for investing cryptocurrencies at interest is Bitcoin lending on the exchange and Bitfinex. For the year it turns out about 7%, at 0.02% per day. The scheme is a P2P lending (on a peer-to-peer basis). The investor gives funds to margin traders. These people make additional profit by using large volumes of cryptocurrencies.

As a guarantee of activity, all funds on the balance sheet and accumulated funds act. This type of deposit in cryptocurrency at interest is very interesting, if only due to the variety in the process of earning. The exchange acts as a guarantor, so the funds will not be lost in any case. Cryptocurrency investment at interest is available only with Bitcoin. Deposit terms and interest rate The user is free to choose.

A similar toolkit is offered by the YoBit exchange, where it is called InvestBox. Gives the user a chance to earn from 0.1% to 10% daily. The creators of the exchange claim that the level of risks in the system is reduced to zero. Interest is accrued from a special fund, which is replenished from the share of exchange commissions, internal instruments and contributions from the developers of new currencies.

Dozens of altcoins are available for investment, the list changes regularly. For a particular coin, there is a specific minimum for investment (which mostly depends on the exchange rate).

It is quite profitable to invest Bitcoin at interest - the profit reaches from 10% to 200% per year.

separate view investment and is considered cloud mining. If you find a reliable service and buy a contract for certain capacities, you can make a profit on every day.

How to properly invest in tokens

To understand how to invest in cryptocurrency correctly, you need to understand the features of the process. To minimize risks and increase income, we adhere to the following rules:

1. Choose a reliable cryptocurrency. Of the thousands of options, it is not easy to choose the best one. The list of rated coins will be as a hint.
2. Assess returns and risks. You need to pay attention to the prospects and trend of the course. If the cryptocurrency is collapsing in the next few months, investing is risky. It is more expedient to buy a "gray" inexpensive coin, which is steadily growing in price.
3. Analyze potential. The longer the cryptocurrency is on the market, the less the risk of failure. Only coins that have appeared are cheap, but they do not give guarantees either.
4. Assess opportunities. It depends on how much money the investor is willing to invest. This is the main point, because everything starts with money. If there are no funds to buy Bitcoin, they choose “reliable from the available”.

The volatility of the cryptocurrency market increases the risks of investors. Users have seen how speculators can dictate the rules. The current market situation clearly demonstrates this. If you approach investing with skill, profit is guaranteed.

The main unpleasant moments that are associated with investing in digital coins:

1. High volatility. The main point that can bring both profit and loss. Even analysts' forecasts do not give a 100% guarantee that the course will go in the right direction.
2. Fraud. The growing popularity of cryptocurrencies contributes to the emergence of scammers who want to capitalize on volatility. Traders should be wary of sites that offer fast and exorbitant profits. You need to choose proven resources.
3. Risks associated with cybersecurity. Hackers hack exchanges from time to time. Recently there was a case with Hong Kong stock exchange Bitfinex: stole 120 thousand BTC. The Bitcoin exchange rate fell by 23%.
4. Legal vulnerability of users. Digital assets do not provide consumer protection. It is not possible to cancel a payment. The irreversibility of transactions does not stop investing in cryptocurrency.

Investing in digital assets is an interesting decision to make a profit, but with certain risks. Each investor must clearly define a plan of action in case of any development of events.

After my investment in Ethereum grew 45 times, I decided to explore alternative cryptocurrencies.

I believe in the idiom "skin in the game" - the advice of a person who does not risk his own skin is not worth listening to. Therefore, I threw a significant amount of money into the currencies from the list.

Cryptocurrencies - affordable way venture investment. So, Ethereum raised money in 2014 and fired - allowing the ETH team to move at an unprecedented speed. They spend money on development, like other startups.

US law prohibits an unaccredited investor from buying shares in private, non-listed companies. It is sad that the state so sharply limits the circle of people - the necessary status is given only with 200 thousand dollars of annual income. Investing in cryptocurrencies is currently not regulated by a handling agency. securities, as well as other agencies - so everyone can buy them.

Any investment can both grow a hundredfold and turn into a pumpkin. Your choice is to follow the advice or ignore it. The list does not include the bulk of cryptocurrencies - disguised financial pyramids; also there are no projects without applicable in real world innovation.

Nine currencies

Ethereum

He is "". Increased 40 times in two years. You can create full-fledged blockchain applications without intermediaries. From what you can drink: mathematically honest casinos and bookmakers, currency exchanges, crowdfunding, simple notarization, issue and storage of shares for the company. Projects work without the mediation of people, which takes away from the owners the opportunity to take the whole jackpot from the project and dump it.

Very promising project, productive team (look what he's doing now). Ethereum is second in market capitalization after bitcoin, while it is still 10 times smaller - that is, even with a conservative forecast that no currency will become larger than bitcoin, it can grow 10 times. However, 10x is not high enough for a long-term investment.

Monero

Anonymous bitcoin. “Isn’t bitcoin anonymous?” - you ask; and the answer will be - "Unfortunately, not at all." Highlighting the wallet address in BTC will allow anyone to see all incoming and outgoing transactions for the entire period.

First, services appeared in bitcoin that mixed black and white cash (mixers) together, thanks to which the money that came from “it is not clear where” fell on the wallet. Simply put, you sent bitcoin to the site, it interfered with other bitcoins and sent one of the other bitcoins to the final address.

Such a site has become popular with the black market: sellers of drugs and weapons. However, the bitcoin-based implementation relies on you to trust the owner of the mixing service - and that he will not turn you in to the police.

What is unacceptable when life and freedom are on the scales. In Monero, this mixing is built in - usually transactions are mixed with each other, and in many cases it is not possible to trace them. This raises the currency's potential for the black market - which is how it got its first growth.

It also seems to me that the anonymity of transactions, aka banking secrecy, is a necessity for the acceptance of any cryptocurrency as a popular means of payment. The capitalization of the Monero market is now 1/100 of bitcoin, that is, the growth potential is great. Monero is the project where I put the most money.

Factom

A blockchain-based system that is optimized for storing large amounts of real-time data. Works on top of bitcoin.

Counter party

Ethereum competitor on the bitcoin blockchain.

siacoin

Distributed data storage. An alternative to Box, Google Drive, with which there will be no access to your data in the hands of large corporations.

Lisk

An Ethereum competitor with a focus on ease of application development and deployment. Uses JavaScript - and has good prospects as an infrastructure for the "Internet of Things" (Internet of Things).

Ripple

A protocol that allows you to dramatically reduce fees for financial transactions - down to a few cents.

It is recognized in the industry - several venture capital funds have invested in it; is also already being used inside several large banks.

The currency itself is different from others: it is centralized and premined.

STEEM

A decentralized platform that allows you to donate money to content creators.

Zcash

A project still in development problem-solving with transaction privacy similar to Monero. An interesting development team, also some venture capital funds have already invested.

However, it seems to me that there are too many risks - at the moment the most common "back door" (backdoor) left in the code by one of the developers - for example, by order of the special services, can forever compromise the system in the future.

However, the currency makes sense as a medium-term investment - I'm also going to throw a little cash into it upon release.

Investment process

An easy way is to buy bitcoin for real money on any exchange, and then buy one of the cryptocurrencies for it. I checked out Poloniex, which has all the currencies on the list.

After investing in any significant amount, it is better to send everything to a separate wallet - otherwise you risk losing your savings when the exchange is hacked. Make sure your vault is not connected to the internet - it's safer that way.

Get ready not to “drain” investments during the next market panic. Those who are ready for prolonged discomfort due to negative exchange rate fluctuations break the biggest jackpot.