Investing in cryptocurrency isn’t always a bed of roses. Recent fluctuations in the market have made it a somewhat uncertain area of finance. However, given the right conditions, the right development of blockchain technology, and its wider public and corporate adoption, it can pay to watch the market for the right time to invest in cryptocurrencies.
It might take from six months to a few years for blockchain technology to finally reach wider market take-up, which will ultimately translate to higher prices. As many more cryptocurrencies are expected to die off in the next few years (many have already been found to be dead or scams), those that remain will be in the strongest position to survive, develop, and grow into strong investments.
According to many market observers, investors should be looking for ‘low risk, high reward’ cryptocurrencies, and one standout crypto with the largest market cap would be Ripple’s XRP. It is primed to be the one to come out of Bitcoin’s shadow in 2019 and is also being touted as the Federal Reserve’s preferred technology in 2019 too.
As the leading indicator for the entire crypto market, Bitcoin remains a powerful investment opportunity for many who feel it is still riding a long term bull market. While it isn’t going to deliver the huge tenfold returns it has in its previous seven years, it can certainly consolidate more as it matures as an investment. It will be a key indicator of the market as a whole, either going up, down, or staying neutral, and one that the best crypto exchanges will be watching closely.
This cryptocurrency has a much smaller cap, just $3 million, but what it lacks in size, it more than gains with a thriving development of blockchain solutions for enterprise security and privacy products. It offers a scalable ecosystem that includes unlimited permissioned blockchains and private networks. Unlike many other cryptocurrencies, it seems to acknowledge the need for effective communication with the everyday Joe on the street.
Similar to Ripple, Stellar was designed to be a fast and relatively inexpensive way of sending international payments. Unlike Ripple, it has focused on targeting individual users rather than institutions and large business corporations. Although, if it is to have a real effect on the market then companies currently taking a minor interest, like IBM, would need to start taking a much bigger interest.
If trading in a fluctuating market is too much, there are always safer industries to invest in; however, the cryptocurrency market has certainly developed and continues to evolve. While Bitcoin will remain the market leader and the crypto that will act as an indicator of the market - it doesn’t have the best technology, maintains slower transactions, exhibits higher fees, and experiences larger energy uses. Other currencies have much better technology, and when the time is right, they will inevitably replace Bitcoin at the top of the tree. Perhaps it’ll be one of the other three on our list, or maybe the already well-established cryptos like Ethereum, SKY, EOS, TRON, IOTA, or Enjin.