Which coin should be invested in safe and good growth?
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Which coin should be invested in safe and good growth is always a concern of investors. From 2020 until now, the cryptocurrency market has continuously set new records with unprecedented peaks in the history of coins such as BTC, ETH, or other Altcoins… Looking at the potential price increase In the long term, the coin market still has a lot of room to thrive in the future. The following article will also share about the coins to invest in.
Which coin should be invested in with the following criteria?
Before going into the details, we need to determine the criteria for choosing which cryptocurrencies to invest in and which have long-term growth value. In recent years, there have been many “junk coins” or scam coin projects born. Without a criterion, it is straightforward for you to make the wrong investment, causing losses or even losing your investment. Here are some selection criteria for your reference.
Coins to invest in 2021 must-have good liquidity
When investing and trading any asset, you should pay attention to liquidity first. The higher the liquidity, the easier it is to cash an asset and the more likely it is to appreciate.
You imagine in real estate investment. If you invest in plots of land in the central area, many people want to own, surely when you want to sell, many people will immediately want to spend money to buy back. . As a result, such properties often appreciate very quickly and steadily. But still, in real estate, if you buy in remote areas, it isn’t easy to find buyers. Therefore, the price increase in these properties is often prolonged and even does not increase in price for many years.
Likewise, in the cryptocurrency market, you should choose coins with a large volume and market cap. These are the factors that determine the level of liquidity in the cryptocurrency market.
Which coin should I invest in with intrinsic value?
Many people mistakenly believe that virtual currencies have no intrinsic value. However, if you learn, you will know that a coin is often associated with a Blockchain project. And that project often has a background in technology, engineering, and practical application. In particular, whether the technology development team is reputable is also an important factor with these projects.
If a coin created to serve a blockchain project has all the above factors, in the long run, its value will be increased due to real benefits. And so, no matter how volatile the market is, the value of that coin is still guaranteed to be sustainable.
Which coin should be invested in with a limited supply?
If the government controls more cash to avoid inflation, the companies control more shares to ensure the index. It would help if you also chose a coin that is difficult to mine or limited in number.
Based on the law of supply and demand of the market, when a coin is limited in quantity, the coin market will have a scarcity. In the long run, that coin will be valuable if it has a guaranteed price factor—intrinsic value.
In addition, the higher the cost of mining a coin, the harder it is to own that coin, and thus, it will also affect the market’s supply. We can see this clearly if we take a closer look at Bitcoin mining in the past and present.
Should invest in coins that are supported by the community.
Community is one of the factors that determine the liquidity of a coin or any other investment asset. If an asset with practical value will receive the attention and support of the community, that property will meet the law of supply-demand. Therefore, and in the long run, that coin will increase in price.
Choosing a coin to invest in 2021 needs to be based on many different criteria. The more criteria that coin meets, the more valuable a coin can be and good long-term investment performance. You should avoid investing in coins with a trend factor or are lured by multi-level companies through profit commitment programs. A normal project will not do programs to attract retail investors, not through such official channels.
Suggest top 5 coins on the market
* See more: The complete guide Binance from a to z
* See more: The complete guide Binance from a to z
Which coin should be invested in? With the above criteria, you can refer to the following list of coins that are currently highly appreciated by the community:
- At the top of the list is Bitcoin – the big brother in the cryptocurrency market.
- If it comes to cryptocurrencies and BTC, the community cannot ignore ETH with its miraculous growth rate in the past time.
- The 3rd place on the list is BNB coin with the approval of the Binance project, making BNB continuously make its mark in the community.
- In addition, we can mention ADA, LINK, DASH … are coins that always achieve remarkable achievements in terms of market capitalization and growth rate.
The above is a list of some cryptocurrencies that we list based on the criteria given. However, whether the investment is favorable depends on factors such as Time to buy and sell, stop loss, take profit, etc. To achieve the best trading effect, you need to learn more knowledge about analysis. Market and have a complete trading strategy.
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