How to choose a cryptocurrency for investment that will never be pumped

In the modern financial market, cryptocurrency is perhaps one of the most risky, but profitable investments. Those who managed to get digital assets in 2017 when they were the hottest trend, most likely, made their jack.

New investors often ask themselves: what cryptocurrency to invest in? If you've also decided you want to enter this fast growing market, then there are some very important things to mull over.

In this article, we'll tell you how to choose the best cryptocurrency for investment.

The best cryptocurrency to invest in is ...

Anyone who tries to tell you that this or that cryptocurrency is the best to invest in is probably very interested in raising its value. No one knows 100% which of the cryptocurrencies will be at the top of the ratings and reach the highest price point. Therefore, only you can decide which digital asset is worth your long-term investment.

For a successful investment, you should study in detail the information about the coin presented in White Paper of the project and make a decision, weighing all the pros and cons. There are a number of fundamental factors that you should pay attention to: what problem does the cryptocurrency solve, what idea is pursued by the project, what team is involved in creating the product, whether the founders have a long-term vision for its development.

You should definitely not go to the exchange without a clear plan, succumbing to the hype. In the world of finance, there is nothing scarier than following the crowd and losing out.

The most favorable portfolio of cryptocurrencies

Crypto portfolio of Liam Davies

If an investor is willing to take a risk and devote his free time to trading, then the compilation of a diversified investment portfolio would be a reasonable decision. With the variety of assets available, the trader will benefit in one way or another, no matter how the market dynamics is changing.

It is worth paying attention not only to the leading coin of the market – Bitcoin, but also to a number of promising altcoins that are provided by the project. They are characterized by limited growth, but may be more stable in the long term. The dynamics of growth is directly related to the development of the project behind the altcoin. “HODLing” such digital assets is a long process, but at the same time is strategically more profitable.

Analysts advise to split the portfolio into three parts: invest 40% of the funds in Bitcoin, 40% in Ethereum and 20% in other altcoins. Among the latter, there are:

• Binance Coin. An altcoin that has been steadily growing in value since the launch of the project. Thanks to the market tools developed by Binance project, the demand for the coin grows with the increase in the number of users of Binance exchange;

• IOTA. An altcoin designed for fast data transfer and commission-free payments between devices on the Internet of Things. The recent surge was caused by the news about the integration of project functionality into Jaguar Land Rover vehicles;

• Cardano. A coin of an ecosystem that develops decentralized applications based on smart contracts. Altcoin demand is growing as ADA developers call their asset the first third generation cryptocurrency, which aims to solve infrastructure and scalability issues.

In addition to popular altcoins, which are familiar to everybody, there are a huge number of startups with a promising project idea on the market. For example, IQN – a token that users can receive for achievements in game battles on PvP platform IQeon and use it in the project's ecosystem. The main goal of the company is to enable gamers to monetize their achievements simply by doing what they love – playing.

Technical analysis of cryptocurrencies

The picture by masterthecrypto.com

You shouldn't invest in cryptocurrency considering only its value. The price of a digital asset is the most volatile factor, which can decrease or grow by tens, and sometimes hundreds of dollars per day.

Experienced traders advice to pay attention to such indicators as:

• Market capitalization – the total value of assets of one type issued into circulation. The more tokens in circulation, the higher the interest of investors;

• Trading activity on reliable exchanges – the number of completed transactions shows a real interest in digital currency among traders;

• Coin liquidity – the higher its level, the faster the asset can be sold at market value. Growing coins are highly liquid.

Let's take a few of the altcoins that we mentioned above as an example. The market capitalization of IOTA is $397,501,097. The coin can be purchased on many exchanges, including the popular trading platform OKEx, where 53% of trading takes place. 2.55% of the total issued coins are sold and bought every day, proving the good trading performance of the coin.

The second example is IQN token with a market cap of $6,204,141. It is now actively traded on EXMO, BitForex, YoBit and Exrates. The daily growth of the token reached 1.47%, and monthly one – over 30%. This supposes that the project is gaining popularity among investors and is successfully reaching new price levels.

There are many promising cryptocurrencies on the market. However, it is worth remembering that their purchase and storage can only be beneficial in the long term. Novice traders often invest in one coin, expecting instant profits. But by doing so, they make a big mistake, losing all their savings after the first unsuccessful trade session. A portfolio of currencies is what will help you stay on top. Moreover, don’t expect to make a profit in a short time, it is better to carefully work out an investment strategy and get a generous reward as a result!