If you like to make your investments virtually then Cryptocurrency is the real game changer. Virtual or crypto currencies like Bitcoin and Ripple are definitely by far the hottest investment product currently available. These immutable and exchangeable cryptographic token promise to become a hard and non-manipulatable money for the whole world. Their investors see a future in which Bitcoin or other cryptocurrencies will substitute Euro, Dollar and so on and create the first free and hard world currency.
Having Bitcoin means to have a share in this venture. If Bitcoin ever replaces monetary central banks or becomes the dominant currency for almost every international trades — the value of one Bitcoin will be around 10,000 Dollar. Buying and keeping cryptocurrencies is a bet on the virtual currency.
Why Invest in Virtual currency And Why Not?
Besides what was already said, there are three major good reasons to invest in virtual currency. First, because you want to hedge your net-worth against the fall of the Dollar imperium, which is assumed by many people to inevitably happen at some time. Second, because you support the social vision behind cryptocurrencies – that of a free and hard money for the whole world. Third, because you understand and like the technology.
What Cryptocurrencies Should I buy? Building your Portfolio.
The former only crypto has been Bitcoin. Up until late 2016 Bitcoin was the cryptocurrency, and there was not much besides it. If you wanted to invest in the success of cryptocurrencies, you bought Bitcoin. Period. Other cryptocurrencies – called “Altcoins” – have just been penny stocks on shady online-markets, mostly used to keep miner’s GPUs working, pump the price and dump the coins.
However, this has changed. While Bitcoin is still the dominant cryptocurrency, in 2017 it’s share of the whole crypto-market has rapidly fallen from 90 to around 40 percent. Many people saw this coming as a result of the growing popularity of Ethereum and the ongoing self-tearing of the Bitcoin community over the blocksize issue. This again shows that it is important to keep your eyes open and listen to what the communities say.
If you want to invest in cryptocurrencies, Bitcoin is still a standard item of every portfolio – but it is no longer the onliest asset. In every well-balanced crypto-portfolio today you find other coins, like:
A good starting point to put together your portfolio should be the website coinmarketcap.
Ethereum
Ripple
Litecoin
Dash
Monero
And more
However, there are also very bad reasons to invest in cryptocurrencies. Many people fall victim to the hype surrounding every cryptocurrency-bubble. There is always somebody captured by FOMO (fear of missing out), buying massively in at the peak of a bubble, just in hope to make quick money, while not understanding cryptocurrencies at all. That’s a bad reason. Don’t do this. Learn before you invest.