Which Cryptocurrency Will Be the next Biggest Thing?
It has been a profitable year for investors who bought bitcoin early on and held on to it during its meteoric rise in value over the last year. BTC, the world’s most valuable virtual currency, has fared so spectacularly in recent years that many casual investors who timed it perfectly and held on to their BTC have become billionaires as a direct result.
Investors are on the lookout for the next digital currency to become rich off of in the wake of bitcoin’s price boom and as additional digital currencies enter the market. What’s the best way to locate a cryptocurrency that will take off in the years ahead?
The Price Of The Cryptocurrency Is Critical
When searching for the next big thing, keep in mind the token’s price. Low-priced cryptocurrencies may be the ideal investment for the average bitcoin investor with limited capital.
With today’s pricing, $5,000 could buy less than half a bitcoin, over 25 litecoins, or hundreds of coins valued at less than $1 each in one or more currencies. Diversification with low-cost coins is an important consideration.
The Prospect for Adoption
Ripple had a tremendous year in 2017. In spite of a little drop since the beginning of the year, XRP has a lot of potential for use outside of the cryptocurrency speculator community.
The fundamental technology of ripple promises central banks and other financial institutions a settlement system. It’s possible to make a profitable investment if you can discover a cryptocurrency that has an advantage over the rest (and so is more likely to be adopted).
Supply is an important consideration.
The maximum amount of a cryptocurrency is usually predetermined. No more tokens will be created until the cap is met, which is usually done through increased mining activity. As of this writing, only 20% of all Bitcoins have yet to be mined.
To put it simply, if demand continues to outpace supply, the price may rise. Consider the entire supply and current circulation of any cryptocurrency before deciding to invest in any of them.
Volume and Cost
You can readily find up-to-date information on cryptocurrency trading on the internet. If a digital currency’s price and trading activity are rising, it is likely to have a strong future. While there is no assurance that this upward trend will continue, it is a good indicator of which digital currencies are now attracting the most investor attention.
Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.