Cryptocurrencies have now become a frequently used buzzword of late. You hear the word during news segments, during day to day conversations with friends and colleagues, as well as during parliamentary debates these days! However, cryptocurrencies are much more than a ‘buzzword’ - it is an economic revolution, which is bringing in significant changes across multiple systems.
Cryptocurrencies have now become an investment opportunity for many. Particularly after the boom phase of 2017, where currencies gained as much as 36,000% in the span of a year! Investors reaped huge levels of profits on minimal investments. Following this 2017 boom, the floodgates have opened up and millions of new investors and first-time investors from around the world are becoming a part of the crypto-craze. You can read more about cryptocurrencies here.
In case you are looking for the best cryptocurrency to invest in 2018, this article will provide you with a detailed idea on the names you should look out for!
Why Do People Invest in Cryptocurrency?
What attracts people towards cryptocurrency investments is the fact that they have proven to provide a much faster returns on investment compared to other traditional forms of investment. Investing the same amount of money on cryptocurrencies, as opposed to stocks and bonds, tends to provide much faster and much higher returns.
Cryptocurrencies have attracted many first-time investors and have caught the attention of a much younger group of individuals than ever before. As more and more cryptocurrencies keep being introduced in the markets, it is essential to understand which among them is the best cryptocurrency to invest in 2018.
Over the course of this article, we will take a detailed look at the best cryptocurrency investments in 2018 for maximum profits. However, before we begin, it must be known that investing in cryptocurrencies carries a high amount of risk. Risks and investments always go hand-in-hand, even if you are investing in stocks or commodities. Even government bonds are subjected to risks!
Best Cryptocurrency to Invest in 2018
With the understanding of the fact that markets are extremely volatile - and can earn you huge profits but can also incur huge losses - let us take a closer look at the best cryptocurrency investment opportunities of 2018. Kindly note that these cryptocurrencies are not “ranked” and are placed in alphabetical order - all of them have an equal chance of success over the year.
Bitcoin, the apex cryptocurrency - is always a safe option to invest in. Bitcoin’s price has retraced by quite a bit in early 2018. There are multiple reasons to believe that it is one of the best cryptocurrency investment opportunities in 2018, let us take a look at a few of them:
The prediction for the currency’s growth is quite healthy, especially in the second half of the year. A look at historic data of the last 8 years shows that Bitcoin prices always tend to boom in the last quarter of the year. Which was also the case for Bitcoin’s biggest boom - that of 2017. Here's a btc price chart exhibitng coin performance over the years:
Moreover, Bitcoin is a ‘safe bet’ for most investors as it is almost certain to provide profits as opposed to other cryptocurrencies. What makes Bitcoin a safe bet and among the best cryptocurrency investments for 2018 is the fact that the currency occupies the largest market capitalization in the crypto markets. Bitcoin holds about 40% of the market share and is a dominating player.
Over the last few months, much has happened when it comes to the framework upon which Bitcoin runs. The introduction and implementation of segregated witnesses reforms as well as the lightning network have helped cut down on the fees as well as the transaction times. With these going down, exchange fees have also gone down. Also, the lower the transaction fees/time, the more likely is a rise in the adoption levels.
Bitcoin’s highest price was beyond $19,500 which the currency hit in late December of 2017. Interestingly, the year had started with Bitcoin priced below $1,000! The growth has been massive all through 2017 and it is expected to boom again in 2018.
As of Jul 11, 2018 - the price of bitcoin is $6315.90 which is predicted to gain 20.83% and reach $7,634.5710 in coming 6 months and $22,811.4014 in 5 years with a positive change of 261.02%. You can check btc price prediction here. You can also keep a tab on btc price history here.
Less than a year old in the markets, Bitcoin Cash (BCH) is the youngest name to appear on this list. Having been forked from Bitcoin (BTC) in August 2017, Bitcoin Cash was created as a lighter, faster alternative to Bitcoin. The currency has proven to be one of the fastest growing cryptocurrencies - as the prices soared on various occasions all through 2017. You can check the below bch price chart exhibitng coin performance over the years:
In addition to a technology that is faster and better, Bitcoin Cash also has two more reasons why it is one of the best cryptocurrency investments in 2018:
First off, Bitcoin Cash has been getting a boost in adoption. The currency is quickly being accepted by many major businesses which accept cryptocurrencies. It has been listed by most major cryptocurrency exchanges - and got quite a headstart as all Bitcoin users were Bitcoin Cash users as well right from day-1. Expect more businesses and organizations to begin accepting BCH in 2018.
Cryptocurrencies are all about communities. Community support for Bitcoin Cash is massive! There are millions of active users as well as investors of Bitcoin Cash, including some major cryptocurrency influencers and experts who believe it is truly superior to Bitcoin in several aspects. It is this support that makes us add Bitcoin Cash to the list of best cryptocurrency to invest in 2018.
At its peak, the price of Bitcoin Cash had crossed $4,000. The currency has since retraced by a lot - providing an excellent opportunity for investors to invest in Bitcoin Cash and make the most out of it and get a huge ROI in 2018.
As of Jul 11, 2018 - the price of Bitcoin cash is $688.42 and is predicted to gain 37.95% and reach $949.67 in coming 6 months and $3,857.35 in 5 years with a positive change of 460.32%. You can check bch price prediction here. You can also keep a tab on btc price history here.
Ethereum, the second largest cryptocurrency by market capitalization, is another ‘safe bet’ when it comes to the world of cryptocurrencies. Ethereum is one of the best investment opportunities when it comes to the crypto markets in 2018 because of multiple reasons. Here’s a closer look:
Ethereum is more than just a cryptocurrency. It is a platform upon which decentralized applications can be developed and deployed. Unlike other cryptocurrencies such as Bitcoin and Litecoin, it is not a one-dimensional system, but one which has multiple applications. Ethereum is not just used for financial purposes but is also used as a token which powers applications on its platform.
Ethereum’s success in 2018 can also be attributed to the fact that a growing number of ICOs are preferring Ethereum over Bitcoin when it comes to starting off their business. Ethereum’s ERC-20 tokens are used by these ICOs till the time they move to their own blockchain after setting up a business and raising funds. With more and more ICOs moving to Ethereum, the prices are expected to continue surging. Here's an eth price chart exhibitng coin performance over the years:
The community of supporters and investors, as well as the developers who work on the development of the Ethereum blockchain are actually passionate about the blockchain technology - and have been leaving no stones unturned to ensure that their product remains top-notch. Vitalik Buterin, the co-founder of Ethereum is one of the brightest minds in the world of cryptocurrency and the dedication that everyone on the development-end puts in proves that the platform offers nothing but the best.
Ethereum hit an all-time high earlier this year when the price of the currency went beyond $1,300. However, similar to most other cryptocurrencies, Ethereum too has retraced significantly, offering a good window for investors. Interestingly, a number of Ethereum-enthusiasts even claim that over the next year or two, Ethereum’s market cap would surpass that of Bitcoin - an event that they call ‘the flippening’.
As of Jul 11, 2018 - the price of Ethereum is $431.27 and is predicted to gain 33.95% and reach $577.66 in coming 6 months and $1,879.47 in 5 years with a positive change of 335.83%. You can check eth price prediction here. You can also keep a tab on eth price history here.
Hailed as the digital silver to Bitcoin’s digital gold, Litecoin (LTC) is indeed the best cryptocurrency to invest in 2018 among others. Litecoin has been around for a really long time - as it was started off in 2011 by Charlie Lee, who has worked with names such as Google in the past. Seven years down the line, Litecoin continues to be among the smartest investment opportunities for those looking forward to invest in cryptocurrencies. Here’s a look at why we thing 2018 is going to be a year of good ROI for Litecoin investors.
Litecoin has stood the test of time and has always managed to be in the top 10 (and almost always in the top 5) cryptocurrencies. The history of the currency has been one of stability and progressive growth. A simple trend analysis can easily predict that 2018 is also expected to be a year when the currency will have multiple ups and downs - but the highs are going to surpass the lows. Below ltc price chart exhibits coin performance over the years:
Litecoin has been accepted by many as a means of payment and the list keeps on growing. In early 2018 we saw Litepay starting off. While Litepay wasn’t really a successful project, it laid the foundation for other names in the market to experiment with Litecoin more often. This is likely to be another major factor which will drive the growth of LTC in 2018.
Litecoin, with the kind of history that it has had, is almost a certain name which is expected to grow. It is also a low-risk investment as the price variations haven’t really been too massive in the past. Litecoin’s growth as well as fall have both been rather slow compared to the other cryptocurrencies in the markets. Hence, it is a good time to invest in LTC as prices have rock-bottomed!
As of Jul 11, 2018 - the price of Litecoin is $76.44. It is predicted to gain 49.75% and reach $114.48 in coming 6 months and $370.10 in 5 years with a positive change of 384.11%. You can check ltc price prediction here. You can also keep a tab on ltc price history here.
Ripple, which was a currency much-known for its banking and finance related activities so far - has become one of the biggest and most popular currencies over the past year. At one point in time, Ripple even surpassed the market cap of Ethereum, briefly becoming the second largest currency by market capitalization. Ripple’s momentum might have slowed down since then - but don’t make the mistake of counting it out just yet, as Ripple is again expected to grow in 2018, here’s why:
While most of the other cryptocurrency platforms tend to rival banks, Ripple has been created specifically to benefit banks and financial institutions. Hundreds of banks and financial bodies across the world - including major names such as Western Union and MoneyGram are experimenting with Ripple-based platforms for international remittances. This is an ever-growing list where names keep getting added almost on a weekly basis.
While banks and financial institutions continue to back Ripple, the platform itself has been expanding and setting up offices across the world. Ripple has been expanding and working on business development aspect of things with a rigour like no other platform. The company’s efforts convince us that these partnerships and tie-ups are going to continue all across the year and help boost the performance as well as the price of XRP over 2018. Here's a xrp price chart exhibitng coin performance over the years:
Interestingly, Ripple is slowly opening up to the ideas of their currency being used by more than just banks and financial bodies. Earlier in 2018, Ripple set up the Xpring Venture Capital Fund (pronounced Spring) to promote startups and entrepreneurs working towards XRP-related projects and to incentivize more such people and organizations to develop Ripple oriented projects.
You surely know a particular coin is best cryptocurrency to invest in 2018 when it has community support which is visible in market dominancy as well. Ripple (XRP) is all set to be a one such coin. Ripple, which showed a massive, 36,000% growth over the past year - is all set to show strong gains as the year progresses.
As of Jul 11, 2018 - the price of Ripple is $0.4441. It is predicted to gain 76.26% and reach $0.7828 in coming 6 months and $2.3652 in 5 years with a positive change of 432.58%. You can can check xrp price prediction here. You also keep a tab on xrp price history here.
Best Altcoin to Invest in 2018
Cryptocurrency trading and investing portfolia is incomplete without Altcoins. Here are some of the prominent. You can check the market volume, community support, price chart, current and historical prices to choose the altcoin to invest in 2018 for yourself.
EOS a decentralized system which uses blockchain to remove transactions fees completely which makes it attractive and the best altcoin to invest in 2018. It provides a platform for dApps (decentralized applications) and also has its cryptocurrency which holds value. Below is its price history chart since the inception of the project. Here's a eos price chart exhibitng coin performance over the years:
As of Jul 11, 2018 - the price of eos is $6.97 which is predicted to gain 34.90% and reach $9.4022 in coming 6 months and $32.3499 in 5 years with a positive change of 364.13%. You can check eos price prediction here. You can also keep a tab on eos price history here.
Zcash takes the concept on Bitcoin ahead with decentralization. While the Bitcoin Blockchain keeps a record of trader as well as the amount involved in the transaction, Zcash Blockchain merely stores an entry of the transaction that took place without revolving the identity of the user in any way - thus providing complete confidentially and anonymity to the Zcash users. This whole scenario has made many traders beleive that it is surely the best altcoin to invest in 2018. Below Zcash price chart exhibits coin performance over the years:
As of Jul 11, 2018 - the price of ZCash is $159.02 which is predicted to gain 48.58% and reach $236.1641 in coming 6 months and $1,652.6562 in 5 years with a positive change of 939.73%. You can check zec price prediction here. You can also keep a tab on zec price history here.
Digital Cash, fondly known as Dash among the peers is one of the best altcoin to invest in 2018. As the name suggests, it claims to be peer-to-peer decentralized digital cash. Thus it differentiates itself from its sibling cryptocurrencies like Stratis, EOS, Ethereum, etc which strive to provide development platforms. Here's a dash price chart exhibitng coin performance over the years:
As of Jul 11, 2018 - the price of DASH is $218.10 which is predicted to gain 56.69% and reach $341.7546 in coming 6 months and $1,347.3522 in 5 years with a positive change of 517.74%. You can check DASH price prediction here. You can also keep a tab on DASH price history here.
If you are researching for best altcoin to invest in 2018, you would have surely come across Monero. Monero has achieved immense popularity for its top-notch privacy features and is somewhat similar to Zcash. Below xmr price chart exhibits coin performance over the years:
As of Jul 11, 2018 - the price of Monero is $125.81 which is predicted to gain 42.45% and reach $179.21 in coming 6 months and $611.75 in 5 years with a positive change of 386.25%. You can check xmr price prediction here. You can also keep a tab on xmr price history here.
Iota is an Internet of Things aka IOT-based altcoin. It is a cryptocurrency for sensor-equipped systems and machines. It is one of the most underrated, yet your best altcoin to invest in 2018. Here's a iota price chart exhibitng coin performance over the years:
As of Jul 11, 2018 - the price of iota is $0.9735 which is predicted to gain 38.26% and reach $1.3460 in coming 6 months and $6.46 in 5 years with a positive change of 563.60%. You can check iota price prediction here. You can also keep a tab on iota price history here.
A blockchain-based social media platform Steemit introduced its cryptocurrecny named Steem in the year 2014. The coins is the driving factor of the platform. The best part of blockchain based platforms is zero downtime and complete anonymity, hence you can count this as a good option to invest in 2018. Here's a steem price chart exhibitng coin performance over the years:
As of Jul 11, 2018 - the price of Steem is $1.35 which is predicted to gain 79.26% and reach $2.42 in coming 6 months and $8.38 in 5 years with a positive change of 520.69%. You can check Steem price prediction here. You can also keep a tab on Steem price history here.
When it comes to NEO, you would have heard this numerous times - The Ethereum of China. It is called so because of its strategic involvement with Chinese Government to introduce Blockchain in the country. It was recently renamed to NEO from Antshares as it shifted to Ethereum smart contacts. It quite a hit among traders and has gained community trust which is why it can be your best altcoin to invest in 2018. Below neo price chart exhibits coin performance over the years:
As of Jul 11, 2018 - the price of NEO is $33.00 which is predicted to gain 67.58% and reach $55.31 in coming 6 months and $214.55 in 5 years with a positive change of 549.97%. You can check NEO price prediction here. You can also keep a tab on NEO price history here.
Best Cryptocurrency Investment Strategies
Now that you know what the best cryptocurrency investments of 2018 are, let us take a look at some investment strategies that you can follow while investing in cryptos.
Cryptocurrency investments may look like a get-rich-quick scheme, but this is exactly what they are not. While profits are quick and massive at times, there have been numerous cases where people have ended up losing out a lot of money while investing in cryptos. Thereby, it is essential to invest with a sound strategy in mind.
Not only should one have a strategy, but they should stick to it and avoid panicking and switching strategies mid-way. This causes a lot of confusion - and thereby a lot of loss as well. Cryptocurrency investments might be a new concept for many, but strategies that go behind this kind of an investment tend to remain the same as traditional stock-market investments.
Before we look into the long-term and short-term investment strategies for cryptocurrencies, a word of caution: Never invest more than what you can afford to lose. Cryptocurrency market are highly volatile. Here’s a look at the best cryptocurrency investment strategies for 2018:
-
Long Term Cryptocurrency Investment
A long-term investment strategy is basically a kind of an investment in cryptocurrencies which you are willing to hold for a longer period of time. An investment which you make for a minimum of 6 to 12 months. Sometimes, long-term investors tend to hold on to their currencies for multiple years, as their profits maximize.
This strategy requires patience. One would have had made more profit if they had bought Bitcoins in 2014 and sold in late 2017 as opposed to buying Bitcoins in mid 2017 and selling them in late 2017. There are a number of things that long-term cryptocurrency investors need to consider:
Are you investing based on time, or are you investing based on a target price: i.e., I’ll sell my currencies after 3 years (or) I’ll sell my currencies when the price reaches $25,000.
Selling off all your holdings at once vs selling them off in pieces. Many investors set targets and stop-losses and sell it according to that. For instance, if you are holding 100 Bitcoins, you sell 25% of them when the price is 50% higher than what it was when you invested, another 25% when the price is 100% higher, and the next 50% when the price is 200% higher. Similarly, people set targets for price drops as well, which ensure they can sell off their holdings without making a loss on their initial investments.
While it is not advised to switch investment strategies - one needs to consider a worst-case scenario in which their long-term investment needs to be sold off in a short-term. This could be due to markets not performing as per expectation or due to some sort of a financial emergency. An exit plan needs to be prepared before you begin to invest long-term.
However, there are a number of benefits xof long-term investments. They usually tend to provide much higher ROI as opposed to short-term investments. Moreover, long-term investments provide a greater peace of mind as one does not need to monitor the prices at all times, as is the usual case with short-term investments.
-
Short Term Cryptocurrency Investment
Short-term cryptocurrency investments are the exact opposite of what a long-term crypto investment is. This is an investment in which the investors tend to sell cryptocurrencies in very short period of time - which could range from a few minutes to a few hours - and in some cases a couple of months. To better define a short-term cryptocurrency investment, these are investments made for a short period of time - i.e. under six months.
While long-term cryptocurrency investments require patience and the capacity to go through major ups and downs of the markets, short-term investments require only one thing: constant vigilance. This can be compared to how day-trading works in stock markets. Investors can buy huge amounts of a cryptocurrency in speculation of a price growth and sell it off at a small growth.
Here’s an example that highlights the difference between short-term and long-term investments:
Short-Term Investing: Buying 10 BTC at $5,000 and selling them off at $5,200 - making a quick, short-term profit of $2000 in a day.
Long-Term Investing: Buying 10 BTC at $5,000 and selling them off after 2 years at a price of $35,000 - making a profit of $300,000 over 2 years.
Here’s what you must keep in mind before making a short-term investment:
-
Setting up a target amount of profit you’re aiming. You must know exactly when you want to sell your holdings. In short-term investments, this matters a lot. While long-term gives you the time to speculate and consider and re-consider your decisions, short-term trading requires quick actions.
-
Are you willing to take a loss - and are you willing to hold for a short while in speculation if the prices will rise? Or are you going to set off a circuit breaker by setting up a stop-loss. Stop-losses are critical in short-term investments as they ensure you don’t end up losing a lot of money if the markets crash.
-
You must ensure that you have ample time with you - which allows you to constantly monitor the markets. Short-term investments require an investors to be in a state of constant alertness and keep monitoring the markets.
Many people who need faster returns on their investment tend to go for short-term investments. However, there’s a certain amount of risk that comes with short-term investments too, so investors need to be on their feet at all the times, monitoring the slightest of price fluctuations.
Risks in Cryptocurrency Investments
This article helps you gain a perspective of the best cryptocurrency to invest in 2018. It helps you understand the long-term and short-term investing strategies. Now before we conclude, it is essential to also understand the risks that come with cryptocurrency investments.
As mentioned multiple times here, cryptocurrency investments are subjected to a much higher amount of risk and uncertainty as opposed to stock markets and government investment schemes. Price volatility has been really high here - as specifically observed over the course of the past two quarters.
What drives the price of any cryptocurrency forward is the level of faith people show in the technology that powers it. The more the number of people believing in it, the higher the market capitalization of the currency - and the higher its price would be as well. However, when markets begin to crash, it is a sign that the public is losing confidence in cryptocurrencies. This is a cycle which happens multiple times a year.
However, when currencies begin to lose value, it becomes a sort of a mass-hysteria where FUD takes over. Fear, Uncertainty and Doubt (FUD) is when investors begin to panic and selling their investments because the prices are falling. This leads to a chain reaction where the price keeps falling because more and more people keep selling off their currencies. Sometimes governments can turn hostile too, as seen in the case of China and India over the past few months.
Hence, there are multiple risks associated with cryptocurrency investments and investors need to ensure that they invest only the amount of money that they are willing to lose.
Conclusion
To conclude, while a boom in the cryptocurrency markets can be quite rewarding - a drop in the prices may leave many investors stranded. It requires the use of a sound strategy - of deciding between long-term and short-term investments. However, for those looking for the best cryptocurrency to invest in 2018, the aforementioned names are almost certain to be profitable over the course of the year. These are ‘safe bets’ as opposed to other currencies and are a good investment for newcomers as well as experienced traders. We hope this guide helped you make the best investment decision.
