Coin investment: Experience and cryptocurrencies to invest
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Coin investment is attracting much attention because of its outstanding growth performance compared to other asset classes. However, not everyone who invests coins has good returns. How to invest coins effectively and safely is still the question of F0 traders. This article will learn about coin investment experience and cryptocurrencies to invest in.
Some experiences to limit risks when investing coins
Looking at the price movement of the cryptocurrency market over the years, anyone can feel that this is a desirable, profitable market but also full of risks. Therefore, if you limit the risk, the profit from the coin investment will be very effective. Here are some experiences for your reference:
- Before investing, you should learn about the potential of that cryptocurrency project. Whether a project is potential or not depends on the founder, the purpose of creating that project, and the community’s support.
- In addition, the coin you intend to invest in must also have a large trading volume and be at the top of the traded coins on the market.
- No investor will achieve good results if they do not know how to control risk. Risk control lies in whether you follow a stop-loss plan when trading. Cryptocurrencies are highly volatile, and if you don’t have a stop-loss plan, you can lose all of your profits overnight.
- Cryptocurrencies are inherently valuable assets that grow over the long term. Therefore, you should only choose good coins with growth potential and hold in the long term without a good trading strategy.
- Absolutely do not trade new coins on the exchange. For an inexperienced person, investing in new or upcoming coins can leave you “stuck” with an asset that has no value. Because evaluating coins potential or not takes time to prove: whether the project is good, whether the project can do what they communicate or not.
Which exchange should you invest?
Currently, on the market, countless cryptocurrency exchanges are appearing every day. Choosing a reputable exchange also helps you ensure the safety of your investment. If you don’t have experience investing in multi-level brokers or scams, chances are you won’t be able to withdraw your money, or they will cheat in the transaction processing.
Binance exchange allows you to buy – sell, trade, and own real coins. Coins you buy on Binance exchange can be transferred to any exchange in the world or transferred to your personal hot/cold wallets.
This is also the top cryptocurrency exchange globally in terms of daily trading volume of up to billions of USD.
* See more: The complete guide Binance from a to z
* See more: The complete guide Binance from a to z
Besides Binance exchange, if you love simplicity, user-friendliness. Or, if you only need to trade but do not hold or transfer coins to other exchanges, you can choose the eToro exchange that allows cryptocurrency CFD trading. That is, you can trade the coin price on the exchange, set a stop loss, take profit on the investment amount or according to the price you have traded. eToro has a very user-friendly and easy-to-use trading platform.
Coin investment: Cryptocurrencies to invest
1. Bitcoin – BTC
It is impossible not to mention BTC at the top of the list of coins to invest in 2021. Bitcoin is the oldest in the list of the most expensive coins today. BTC is the most widely known coin globally, and the most talked about name in the market. Even many people do not know the existence of coins other than BTC. Therefore, it always has the highest level of liquidity.
Currently, the number of BTC mined is less and less, while the number of people who want to own BTC increases, making its scarcity level also increase.
On the other hand, BTC is being accepted by more and more organizations and businesses as a legal payment method. Therefore, it is coming closer to practical value serving human needs.
Also, because of the above factors, more and more people accept and support BTC.
Therefore, despite its price fluctuations, still takes place, long-term investors will always have a dream investment performance that other assets do not have.
2. Ethereum – ETH
Besides BTC, it is impossible to ignore him for two ETH in the crypto market. This is the 2nd most popular cryptocurrency on the market. ETH was born along with the increasingly diverse Ethereum ecosystem. The platform supports thousands of dApp projects, is considered the king of Defi decentralized finance projects, and is the launch site of many ERC20 tokens. ETH has always been appreciated in the market for its development potential as well as its practical application. In 2021, the ETH price does not have time to exceed 4000 USD, and the market capitalization reaches over 400 billion USD.
3. Binance – BNB
Binance is a prominent blockchain project from 2017 with BNB coin to go with it. The Binance project is widely known as one of the world’s leading cryptocurrency exchanges with a rapidly increasing trading volume, up to billions of dollars. In addition, the Binance ecosystem is constantly expanding with its own blockchains, applications that support ICOs, NFTs, etc., which are increasingly convenient and diverse. The more the Binance project is known, the more BNB coin is used and traded through Binance’s user community.
With many advantages, BNB has grown tremendously when regularly appearing in the top 3 lists of cryptocurrencies with the largest market capitalization, just behind BTC and ETH. In particular, Binance is actively promoting the development of BNB with the ambition of replacing ETH to dominate the Altcoin market.
4. Cardano – ADA
ADA is the cryptocurrency product of the Cardano project. The father of this project is Charles Hoskinson – co-founder of Ethereum. Cardano was born with the expectation of being the 3rd generation Blockchain and is known for its secure transactions, processing speed, and low costs. After many years, ADA has affirmed its position when continuously reaching the top 3 and top 4 in the list of coins with the largest market capitalization. In particular, ADA is also highly appreciated for its ability to save energy and be environmentally friendly. Currently, this is one of the coins on the top list to invest in.
5. Chainlink – LINK
Since 2020, Chainlink is known for certain successes in the community. LINK is the leading coin in the Oracles segment and continuously reaches the top 10 most popular coins in the market. In particular, Chainlink supports 350 projects – a rare breakthrough. Currently, LINK is continuously moving up the rankings in terms of market capitalization.
Above are some experiences on coin investment and a list of cryptocurrencies to invest in. However, for effective investment, we still recommend that you learn more about market analysis and develop a complete investment strategy before trading with large capital.