. What Is Cryptocurrency?
Cryptocurrency is a new form of currency that uses blockchain technology to create a “decentralized” public ledger to keep track of all past transactions.
These currencies have appreciated in value so quickly there has been a feeding frenzy of investors searching for the best cryptocurrency to invest 2018. The ability of these new currencies to allow anonymous usage is another major factor attracting many investors.
2. What Are the Benefits of Using Cryptocurrency?
There are many advantages to using cryptocurrency. Due to the decentralized ledger, no government of any country can ever seize your cryptocurrency assets, and you can spend these currencies anonymously without being tracked. Therefore, many people who would traditionally invest in precious metals or foreign currencies are turning their attention to cryptocurrency.
Because predetermined algorithms control many cryptocurrencies, there is usually a fixed rate for new currency creation. This is in contrast to the U.S. Dollar for example, where our government can print as much money as it wants, thus diluting the value of the dollar in the long run. The scarcity of a currency is part of what allows it to keep its value, and the mechanisms that cryptocurrenciesuse to create more currency are much more predictable than conventional currency.
3. How Does Cryptocurrency Work?
Cryptocurrency represents a radical new idea for how a currency should work, for a few reasons. Governments create conventional currency, the money people earn, spend into the economy, and that banks store and move around through loans and investments. Conventional currency uses this, a centralized model, for keeping track of past transactions.
This means each payment made with a card using conventional money passes through the banks for approval or denial. It ultimately means your government could freeze your accounts and instruct the banks to deny all charges. This is something that sometimes happen when citizens find themselves in legal trouble.
With cryptocurrency the ledgers of past transactions use a distributed model that leverages computing power all across the world to approve or deny transfers.
4. How Can You Buy Cryptocurrency?
Purchasing the new cryptocurrencies would most likely be the biggest barrier for many investors new to this concept. Online you’ll find many hosted exchanges where you can trade your local currency and convert it into your cryptocurrency of choice.
This step has costs involved and there have been cases of fraud where the online exchanges have been the target of malicious hackers who have been able to steal large sums of currency in one security breach. Many investors see these rare occurrences as part of the risk of investing, but it is important to know fraud does sometimes happen.
5. How to Determine the Best Cryptocurrency to Invest 2018?
Determining the best cryptocurrency to invest 2018 is a rather straightforward process. The main question to ask is whether your chosen cryptocurrency will appreciate in value or possibly depreciate to lower than the dollar value you invested. Supply versus demand determines the likelihood of either scenario happening. The popularity and usage of the currency can help determine the demand, and the rate at which the new currency is “minted” will determine the supply.
How We Reviewed
We reviewed the financial products in this article with the following criteria in mind; the benefits offered with using the currency, the price of the currency compared to conventional money, the ease with which you can purchase the currency, and the possible outlook of the value of the currency in the coming months. We’ve done our best to balance these factors and recommend only the top ten best cryptocurrency to invest 2018.
Zcash (ZEC) is one of the newer additions to the market, but is has gained popularity quickly when compared to other cryptocurrencies. As of 2018, there are about 21 million coins in circulation and investors can have a level of anonymity. Reports that feature many details are also available to help investors keep track of the supply and demand of this currency.
The conversion rate of this cryptocurrency is at approximately 1 ZEC = $206.89 USD. Keep in mind, this can change from minute to minute. The value of each currency is subject to change.
Ethereum is the brainchild of a computer programmer, Vitalik Buterin, and was first introduced in the middle of 2015. Ethereum has about 12 million coins in circulation. Just last year Ethereum saw a high level of appreciation with over 13,000% of growth in value in just one year. This alone makes investing in Ethereum a great option. It is one of the most popular and well-known cryptocurrencies outside of Bitcoin and is easy to get started with. This makes Ethereum a great place to start of beginning investors and one of the best cryptocurrency to invest 2018.
The conversion rate of this cryptocurrency is at approximately 1 ETH = $175.86 USD. Keep in mind, these values change constantly from minute to minute. The value of each currency mentioned in this article is subject to change.
When speaking about investing in cryptocurrencies, definitely include Dash on your list. Created in 2015, it is one of the oldest currencies on our list, and it carries one of the highest dollar values of cryptocurrencies in our review. They now process over $100 million dollars worth of transactions daily, due to the high reliability and the low risk of fraud they offer with this cryptocurrency.
The conversion rate of this cryptocurrency is at approximately 1 DASH = $143.22 USD. Keep in mind, this can change from minute to minute. The value of each currency is subject to change.
VeChain may be one of the most underrated investment options in the cryptocurrency industry right now. The company’s leader Sunny Liu has worked in multiple executive positions at many top companies you will find in the Fortune 500, lending to the bright future of this currency. Used mainly in China, to develop supply chain solutions for companies operating in the eastern section of the world, this currency will gain popularity in western markets in the coming years, which will only further speed up its rate of appreciation in value.
The conversion rate of this cryptocurrency is at approximately 1 VeChain = $0.007786 USD. Keep in mind, this can change from minute to minute. The value of each currency is subject to change.
Ripple has gained a lot of popularity recently, even being accepted as valid payment by trusted institutions such as MIT. There are even cases of startup companies using this cryptocurrency for multiple rounds of funding instead of conventional currency. Introduced in 2011, Ripple is best known for its quick rate of transfer, which makes using it as a day-to-day currency much more practical. The system refreshes every 2.5 minutes making it much faster than other cryptocurrencies.
The conversion rate of this cryptocurrency is at approximately 1 XRP = $0.52 USD. Keep in mind, this can change from minute to minute. The value of each currency is subject to change.