Article Curtesy of Crypto News Hub
The grandfather of cryptocurrencies, Bitcoin has been around for 11 years. More than 2,300 others are offered around the world today. In the last few years, there has been an “explosion in cryptocurrencies as over 300 new coins reached $1MM market cap in 2017.” This chart from visualcapitalist.com shows that explosion. You can also see Bitcoin’s percentage of the total market cap.
What is Market cap? The total price of all coins added together or the circulating supply of tokens multiplied by the current price, i.e. 100 tokens trading at $10 per coin, market cap = $1000.
Of those 392 cryptocurrencies that reached over $1MM in 2017, over 45% were Bitcoin!
The cryptocurrency market continues to grow and change with more investors taking their turn at possible profits. Many questions arise whenever the topic of Bitcoin and cryptocurrency comes up.
- What is cryptocurrency?
- How common is crypto?
- How are Bitcoin and cryptocurrency different?
- What is the best cryptocurrency to invest in 2019 or 2020?
- Why invest in cryptocurrencies?
What is Cryptocurrency?
Nerdwallet.com tells us, “Like any currency, cryptocurrencies can be used to buy goods and services. But unlike other currencies, cryptocurrencies are digital and use cryptography to provide secure online transactions. While cryptocurrencies can be used to buy things, much of the interest in these unregulated currencies is to trade them for profit, with speculators at times driving prices skyward.” See full article.
Think of it as a global currency. Because it’s digital, it’s not bound by borders. It isn’t held inside a bank vault because it doesn’t have a physical form.
It is highly accessible. Digital coins can be traded whenever and wherever you want. It’s also secure. You don’t have to be afraid of identity theft or fraud.
It’s a great way to diversify your portfolio. Transactions are faster and come with lower fees than normal trading accounts.
It’s most common in Turkey where 20% of the people in an online poll said they had used or currently owned cryptocurrency. The following graph from Statista Global Consumer Survey shows how common cryptocurrency is around the world.
Although it’s more popular in other parts of the world, cryptocurrency is gaining popularity in the United States.
How are Bitcoin and Cryptocurrency Different?
Cryptocurrency is like the US dollar because it’s a form of trade. However, it’s not solid and uses cryptography (codes). Bitcoin is the best-known example of cryptocurrency.
What is the Best Cryptocurrency to Invest in 2020?
When you search on the internet, many articles will give you their lists of the “top 5 cryptocurrency” or “top 10 cryptocurrency.” All of the articles agreed on the same top 5 or top 10 best cryptocurrencies.
Not in any particular order, lists for the top 5 cryptocurrency to invest in always include the following:
The following are some of the things that make these cryptos stand out.
Bitcoin is well known. It has the largest market cap and is the most highly traded. This gives it plenty of liquidity in the short-term. It’s the market mover and can impact the prices of the other cryptocurrencies.
Ethereum, introduced in 2015, it’s seen massive gains and is one of the most talked about cryptocurrency projects in the world. It offers support for “smart contracts,” which are programs that are part of the blockchain. Along with a myriad of uses, smart contracts also manage agreements and store information.
Blockchain: The record-keeping technology behind Bitcoin and other cryptocurrency. It is a distributed, decentralized, public ledger.
This next one has a quicker transaction time than Bitcoin and is already accepted by Overstock.com. Litecoin was an early spinoff of Bitcoin. It’s a peer-to-peer cryptocurrency.
The only Cryptocurrency in our top 5 to be developed by a company, Ripple already has several partnerships with money transfer service companies. Its website boasts of instantly moving money “to all corners of the world.”
If you want to keep your transactions private, Monero is a privacy digital asset. You can make a transaction without having your balance checked or your activities traced.
To finish out the top 10 cryptocurrency, the list might contain any of the following:
Steller, Zcash, NEO, Dash, IOTA, NEM, Cardano, Tether, Steem, Basic Attention Token, or Enjin. They all come with their own advantages, disadvantages and business models. Determine your purpose, investment style and strategy so you can invest wisely.
Why Invest in Crypto currencies?
Even though there are many questions about investing in cryptocurrency, there are many reasons why you should consider investing. You can decide to invest in it for your personal use, buy and hold it, or trade it quickly for profit.
If you invest for your personal use, you control your own “money.” You can spend it online or for other purchases.
Maybe you want to buy your favorite cryptocurrency and simply hold it for a set time or until it reaches a certain price.
To quickly trade it for profit might be a short-term investment or you could even day trade it.
There are two main benefits for investing in cryptocurrencies. First, it has huge profit potential. The amount of volatility related to the crypto market increases both the possibility of profits and losses.
Second, cryptocurrencies can’t be counterfeited. It’s impossible. Transactions are recorded on a distributed ledger, which cannot be changed. If someone tries to change it, the consensus algorithm finds the discrepancy within minutes.
How People Use AI on Crypto
It’s common knowledge that Artificial Intelligence (A.I.) is being used in industries everywhere, like healthcare, transportation, banking and finance. You’ll notice it in regular stock trading and now when trading cryptocurrency.
Posted on September 25, 2019, Kai Sedgwick wrote, “Within the smaller cryptocurrency sector, there’s an assumption that there are too many exogenous factors for AI-based tools to have an edge. That assessment will soon seem archaic, for with the development of software that can simulate trillions of trading days, algorithmic trading powered by AI will inevitably prevail.” See Complete Post
iFlipinvest.com is one of the first companies to use sophisticated Algorithmic Intelligence (AI) stock trading software to protect and grow wealth. It can identify and manage risk, thus protecting long term investments (not a day trading software or get rich plan). It can’t predict exactly when a crash will happen, but it comes close. AI will cut losses by selling before the crash, buying when the market is stable and holding your cash during uncertain times.
Iflip’s AI Software crash savings on the S&P500 Tactical Model from crashes ranging to 1987 – 2018
Right now, AI at iFlipinvest.com is available for use with regular stock investing. A mobile trading app will be offered free in early October. And shortly after that, you’ll be able to trade cryptocurrency and cannabis with the added benefit of using the best algorithmic trading software available. iFlip’s algorithmic trading software can protect your wealth because it uses proven strategies.
Realize that investing in cryptocurrency, although highly speculative, is here to stay. Most cryptocurrencies offer some value, but beware of scammers! Study for yourself to determine what is right for you, and then choose your best cryptocurrency to invest in 2019…or 2020.