If you have recently become interested in cryptocurrency or perhaps have a friend who just became a crypto millionaire, you might be wondering what the best cryptocurrency is to buy right now.
The truth is that timing the purchase of a cryptocurrency is extremely difficult, and there is no right answer to what the best cryptocurrency to buy right now is. But we do have a little bit of advice that can help you choose the right cryptocurrency to buy. Read on to find out more!
Disclaimer: This is not an investment advice. While we have tips on choosing the right cryptocurrency to purchase, any risk you decide to take is your own, and we cannot be held responsible for poor purchases. Know that any cryptocurrency purchase carries risk, and you are just as likely to lose everything as you are to make money.
The Best Cryptocurrency to Buy Right Now
There is no easy answer to what the best cryptocurrency to buy right now is, as the answer can vary from person to person based on their risk tolerance and the amount they have available to invest. But there are a few cryptocurrencies we always recommend investing in, no matter the time of year, and they are as follows:
Bitcoin is always a good cryptocurrency purchase. Not only is Bitcoin the most famous cryptocurrency, but it is also the most proven, meaning you aren’t taking as big of a risk when you buy it. Of course, the price may fluctuate over time, so it isn’t a sure thing, but it is a coin you will always be able to sell if you decide it isn’t for you.
Plus, Bitcoin has a maximum number of coins to be produced, meaning it is more likely your investment will increase in value as the final blocks are added to the blockchain.
Ethereum is always a good purchase as well, especially if you can purchase 32 ETH, the amount needed to stake the blockchain. Staking the blockchain will allow you to earn rewards on your cryptocurrency just by being involved in the process of verifying transactions.
Obviously, Ethereum is a little more complicated, and it doesn’t have a cap like Bitcoin, so it is a slightly riskier investment-wise. But if you are able to stake, you shouldn’t worry about that, and Ethereum is likely a good investment choice for you.
Cardano is a blockchain similar to Ethereum but built to process transactions faster and more efficiently. Like Ethereum, Cardano has a strong history and a large following. While it is a little riskier than Ethereum and Bitcoin, it is still a viable product and an excellent choice for someone just getting started with cryptocurrency investment.
Choosing a Cryptocurrency to Buy
Our list above is quite short, and it is likely you are looking at buying something that is not Bitcoin, Ethereum, or Cardano. If this is the case, then there are a few things to remember as you shop.
As we mentioned above, it is very difficult to time the buying of a cryptocurrency, and just buying what is popular is likely to lead you astray. Instead, we recommend looking at the top cryptocurrencies and then evaluating the following information.
The Liquidity of the Cryptocurrency
The last thing you want to do is buy a currency that you will never be able to sell. Check the liquidity of any cryptocurrency you are thinking about buying and make sure you can easily sell it again. It is also a good idea to look at forums like Reddit and see if any buyers are complaining about coin liquidity—as it may not always be apparent that a token is illiquid at first glance.
The good thing about a liquid currency is that you can trade it later if your investment isn’t working out, which is one of the main reasons we recommend only investing in coins that have a high level of liquidity. Not to mention that coins with low liquidity are often rife with other problems, which make them a poor investment choice.
The Purpose of the Project
After ensuring you have the ability to enter and exit your chosen cryptocurrency, it’s time to look at why that cryptocurrency exists. Look at the whitepaper and other documents, and ensure you understand what purpose the cryptocurrency is serving in the blockchain community.
If you can’t find a purpose, or it isn’t one that you agree with, then the coin is likely not a good purchase option for you.
What People Are Saying About the Cryptocurrency
Do a Google search of your chosen cryptocurrency and look at websites that the creator of said currency doesn’t sponsor. These websites should be ones like CoinDesk, Coinbase, and Reddit so you can get a few different viewpoints on what the currency does and who is behind it. (Note that you should not reference celebrity endorsements during this time).
If your cryptocurrency has little or no information on CoinDesk and Coinbase, this is a bad sign. If you also see people discussing it negatively on Reddit and other forum sites, this is another bad sign.
It is additionally a good idea to check known scams and run any cryptocurrency name through news sites to ensure it hasn’t been reported as a scam.
Remember, just because a cryptocurrency is cheap doesn’t mean it is a good deal. Anything worth investing in will probably be more expensive than a coin that is a scam.
Overall, investing in cryptocurrency is risky, and there is no firm answer on what cryptocurrency you should purchase right now. Any investment should be approached with research and understanding and only placed once you have done your due diligence to ensure it isn’t a scam and that you can exit the investment when you choose to do so.