It’s quite likely that you will never see the best cryptocurrency to buy. Or, if you do see it, it won’t be for sale. The Bitcoin blockchain is full, and new currencies are being developed all the time. So identifying which ones are worth investing in is hard.
But there are tips that can help you find the best cryptocurrency to buy. For example, if you look at the charts of most cryptocurrencies over a period of several years, they tend to trend up and down in waves that follow each other regularly. Cryptocurrencies with a lot of trading volume tend to have more regular waves than cryptocurrencies that are less traded. You can get an idea of how much trading volume a currency has by looking at its trade history on exchanges like Poloniex.
In part, this reflects the fact that there isn’t really a best cryptocurrency; if some are a bit better than others in one respect or another, it’s not obvious which one is “best,” at least not without more work. But partly it reflects the fact that there isn’t really a best cryptocurrency for most people to buy. Every time I write about how to get started with Bitcoin, I get hundreds of emails from people who want to know what the best cryptocurrency is for them to buy.
If you don’t have an account with Coinbase, buying Bitcoins from an ATM can be tricky. If you don’t want to go through all that hassle and paperwork, you can use this site to find a currency exchange in your area: https://coinbase.com/r/5cxnca9
A conventional stockbroker might tell you that Google is a good investment because it’s a technology company that provides services to lots of other companies. But if you asked me what I’d recommend, I’d probably respond that Google is not the best cryptocurrency to buy. The reason is that it’s a large company, and its stock doesn’t fluctuate much. You don’t want to buy companies like that, because they are too susceptible to big market movements.
I’d therefore recommend Dash, which is a crypto-currency founded in 2014. Dash uses a different technology than Bitcoin: it has two layers instead of one. It’s called “Masternode” for the first layer (a secure version of Bitcoin), and “Master Node” for the second tier which adds privacy and instant transactions. While Master Nodes are not new technologies, being able to run them on your computer made the technology scalable enough to work as money. This makes Dash more attractive than Bitcoin.
The choice of cryptocurrency to buy is a hard one, which is why there are so many different buzzwords and no clear consensus. One problem with the buzzwords is that they are used as shorthand for a complex set of factors.
You can make a case for Bitcoin or Ethereum, but not Litecoin or Monero. But none of them stands out as clearly better than the rest. They all have particular strengths, and each has some particular weaknesses – Bitcoin’s security, Ethereum’s scalability, Litecoin’s speed and Monero’s anonymity. And there are also other cryptocurrencies that don’t fit neatly into any category: Ripple, Dash, PIVX and NEM.
It may be worth having an idea about what those strengths are – for example, to decide whether you need the security of Bitcoin or the speed of Ethereum. But then you have to remember that it might be better to get more speed without too much security – how much security do you need? The best advice I can give is to look at each cryptocurrency in turn and ask yourself what its technical features are like compared to your own situation. If you want to buy one cryptocurrency because it seems cheaper than another, try comparing them in terms of their qualities rather than their prices.
There are three good reasons to buy cryptocurrency.
First, the value of a cryptocurrency is determined by the market for it. The more people use it, the more valuable it will be. This is true of most things, but it’s especially true of cryptocurrencies.
Second, new cryptocurrencies are being created all the time, and old ones are being replaced by new ones. This is how money works: every currency has its own history and its own set of rules and precedents that bind everyone who uses it. So where money is concerned, change is normal and constant. And there’s no such thing as a stable currency: you can get it up or down 50% in a month.
Third, some cryptocurrencies have features that make them more suitable than others for certain kinds of transactions — features like faster transactions or greater privacy or lower transaction fees. For example, if you want to transfer money from one cryptocurrency to another you may have to pay an exchange fee, which means a payment gets slower and more expensive over time. It’s not just that fees go up; fees also go down when fees go down — because fewer people are using them.
Many people are rightly skeptical about the ability of a small number of companies to create technical standards and manage billions of lines of software. But even many people who don’t share that skepticism have doubts about cryptocurrencies, because they don’t trust developers with enough power to manage the whole thing properly.
For the moment cryptocurrencies are like the Wild West. The administrators are absolutely ruthless, and they will do anything to preserve their power, including crashing the whole thing if they think you’re getting in their way.
So what should you do?
The answer is simple: don’t put your money in any cryptocurrency until we have a broker who will let us trade them on a regulated exchange.
Crypto is a new kind of currency, created in 2009 by an anonymous programmer called Satoshi Nakamoto. Bitcoin is the most popular cryptocurrency, currently worth around $6,000. It was created as a purely digital medium for exchange, but it has grown in popularity due to its inherent properties.
The idea of crypto currency is to use cryptography to create a decentralized database that can’t be controlled or altered by any central authority. To prove that you own something you have to add your signature to the ledger, which is broadcasted on a network of computers all over the world. The ledger is publically accessible and anyone can see what’s been added and what hasn’t.
Crypto has become popular because of its unique properties: it isn’t controlled or altered by any central authority, it’s completely secure and there’s no need for any middlemen like banks or governments in order to transfer money.