What’s The Best Cryptocurrency To Invest In For Long-Term In [2021–2022]?

Bitcoin: The Digital Gold that will Make the Money Disappear

Although, there are many cryptocurrencies available for long-term investment namely;

• Ripple (XRP)
• Bitcoin ( BTC )
• Monero (XMR)
• Litecoin (LTC)
• Ethereum (ETH)

But out of them Bitcoin began to gain popularity since 2013, the other cryptocurrencies have appeared that are trying to get a share of this emerging market, worth billions.

What is Bitcoin?

“Bitcoin is the first form of 100% digital crypto money, it has no physical form and will not have it, it was created to live on the web, and more than 50% of the world’s population has access to this currency. A way of interacting economically as we have it in the physical world.

What drives Bitcoin’s prices?

The Bitcoin market is huge, with a capitalization of $ 20 billion. If, at the beginning, it was only used by cryptocurrency enthusiasts, it has now consolidated its status as a legitimate financial instrument in the currency market.

As such, Bitcoin could be influenced by variations in the currency market, mainly because many investors consider it an active safe haven.

For example, when the Yuan was very weak at the end of 2016, many Chinese investors came to Bitcoin, which caused a big rise in price.

Investing in bitcoins: high potential, but big risks

This cryptocurrency has attracted the attention of the people for its surplus value, but its purchase carries important considerations.

Investing in bitcoins resembles investments in other currencies; The principle of buying cheap and selling expensive to make a profit is the same, but in the case of digital currency there are important considerations that all interested should keep in mind.

The first of these is their volatility. “The price of a bitcoin fluctuates several times during the day in greater magnitude than other currencies or stocks, which is a risk for most, but an opportunity for speculators or traders who know their markets.

Investing in any currency is an activity that, roughly speaking, can be done in two ways: the speculative, by means of short sales (buying and selling currencies several times in one day depending on the possibilities of the price going up or down), Or by developing a medium- or long-term investment scheme (i.e buying currencies and saving them for a longer period to sell them when appropriate).

Developing a Strategy

Once you understand the risks of investing in bitcoins, the next step is to develop a strategy and, even more important, to have discipline with it.

“You need to have a strategy and respect it; Have a price at which to buy and sell, define how much you want to win and how much you are willing to lose. It does not always win and it is better to cut a small loss, to lose the accumulated profits and to reduce its capital.

For this reason, specialists agree that a plan focused on the long term is the most advisable, since bitcoin has had a positive performance, which is expected to remain in the coming years, despite their strong daily adjustments.

For those who just want to try without getting into the daily or weekly sale of bitcoins, Kovac recommended a very specific strategy.

“You can buy bitcoins once a week for 500 or 1,000 pesos, regardless of the price; The average price of your investment in bitcoins will be very good, since although one day purchases more expensive and the next cheaper, the long-term average will be better than saying ‘today the price is good, I will buy for 50,000 pesos’ but you can That tomorrow may come even lower; If he buys regularly and leaves it for a year or two it is not speculation. “

For his part, Rodriguez advised to perform a technical analysis of the currency, that is, examine the data of his behavior to identify possible opportunities to buy and sell. This analysis can be performed in conjunction with the indicators that exist at the exchange sites.

In addition, he suggested not neglecting the fundamental analysis, which is used to read and interpret information on macroeconomic indicators and political decisions that could affect the price of bitcoin.

This analysis can be done by searching for information on the number of transactions performed per day and the investments that banks or financial institutions have made in Bitcoin companies. In addition, information on the growth of companies of Bitcoin and blockchain can indicate a possible growth of cryptocurrency, as well as new use cases such as international payments and payment processors.