It is high time I gave you some general information about a question that has been repeated on an on:
Which cryptocurrency should I invest in?
(*) As usual, if you have any enquiry while reading or once you have finished reading the post, leave a comment and I will help you out as soon as possible.
2. BEFORE STARTING
- No investment guarantees profit. You could both make and lose money.
- The cryptocurrency market is one of the most volatile ones. Be ready for considerable price fluctuations in your investments.
- Invest only a part of your savings that you are willing to lose, since your market predictions might not be fulfilled. No one will give you back your lost or devalued money to do the shopping or to pay for any other essential expenses.
(*) If you do not want to involve yourself actively (researching, inferring or trading on your own), you can always emulate successful cryptoinvestors’ movements automatically using applications such as eToro.
3. MORE THAN 6000 CRIPTOCURRENCIES
Currently, there are more than 60000 cryptocurrencies in which you can invest.
You can check here a list of them from most to least valued with ALL the information about each one of their projects: real-time capitalization, price per share, supply, trading volume, historical charts, brief descriptions of each cryptoasset and markets where you can find them. All in all, you will find there everything that you might need in order to keep up to date on your own.
4. WHICH CRYPTOCURRENCIES SHOULD I INVEST IN?
(*) The projects I have commented on in this section are personal recommendations which in no way whatsoever guarantee future profit, even if they are well-founded. The value of each cryptoasset depends on many macroeconomic factors. Thus, they can either increase or decrease in the future.
In this section you will find the projects that I have personally looked into and sound interesting in the short, mid, and long-term.
For now, although I’m not in any asset as the market is unstable, I will start with two recommendations of cryptocurrencies you could invest in: BNB and NANO.
Let’s see why:
1. BNB (Binance Coin)
The biggest cryptocurrency exchange: Binance (more than 15 million users, avaliable in 180 countries and with a daily trade volume of more than 200 billion dollars).
Main reasons to invest in BNB:
- Commissions are reduced when buying and selling cryptoassets as you have more amount of BNB in the platform. You can see the discounts chart [HERE]. Taking into account that the maximum amount of BNB is approximately of 175 million and that such amount will gradually go down every three months to 100 million, it is easy to infer that as long as there is still demand of cryptoassets trade, the value of BNB will go up.
- Commissions increase when you have more than 500 BNB (from 20 % to 40 %). More information [HERE].
- Having BNB will allow you to take part in Binance IEOs (offers of new cryptoassets launched through Binance). In other words, Binance makes certain cryptoprojects go on the market, so if you have BNB, you will be able to buy these new cryptoassets shares before they are officially launched (generally for a lower price). (*) Historically and so far, all Binance IEOs have had a positive return, some of them have reached 42 times their original value.
— CZ Binance (@cz_binance) August 19, 2020
- As time goes by, the amount of BNB goes down (the BNB used for trading in the platform burns every three months, which results in a rarer number of shares in BNB). This burning will continuously happen every three months, leading to a total of 100 000 000 BNB. As you know, if the quantity of something with equal or high demand is low, the price is higher.
- Up until now, Binance is like the “Google of the cryptocurrencies“. Not only due to the number of users, the amount of cryptoassets, the daily volume of buying and selling, etc., but also because of its cutting-edge sense. It is likely the most active team in the cryptocurrency world. This is particularly relevant for the future price of BNB. Taking into account that the amount of BNB gets lower and lower (essential to use the platform), if it keeps drawing users in and the interest in the cryptocurrency trade keeps going up, the price will raise due to a high demand.
- Now BNB holders will also receive new cryptocurrencies simply owning BNB on Binance (About “farming” and Binance’s Launchpool). (*) From September 2020.
- If you have the Binance VISA card (to buy with your cryptocurrencies), you can get up to a 8% of cash back from every purchase depending on how much BNB you hold in your Binance account. You can check the disccounts range [HERE].
In short, if the interest in the cryptocurrency buying and selling keeps going up, which seems to be what is going on, and Binance keeps doing well and drawing more and more users in, the value of BNB is likely to increase in the future. On the contrary, if the interest in the cryptoassets goes down, their price will decrease. The price of the BNB will vary depending on these two scenarios.
BNB price prediction
- Short-term (< 1 year) ≈ $35-100.
- Mid-term (1-3 years) ≈ $100-500.
- Long-term (3-10 years) ≈ > $1000.
(*) A sharp drop of the Bitcoin price might lower the price of BNB to $15, $8, or even $5. I do not think it would go beyond that, unless cryptocurrency get banned in the US, Europe, and/or China.
(**) Among other down sides (as all companies), Binance keep suffering from overloads of the system when there are big moves of the market (last today 9/2/2020). This is an important drawback that hasn’t been fixed yet unfortunately and that could affect the prosperity of the project in the future if don’t get solved once and forever.
Where can I buy BNB (Binance Coin?)
Obviously, you can buy BNB in Binance. You can sign in here.
NANO is a cryptocurrency that offers instant and feeless transactions thanks to the DAG (Directed Acyclic Graph) technology.
Main reasons to invest in NANO:
- Unlike most of the cryptocurrencies, which take some time (minutes, hours, sometimes even days) to confirm transactions, NANO does it immediately (in less than a second on average).
- Bitcoin, Ethereum and the other cryptocurencies can charge high fees for transaction when their networks become saturated. In NANO no commissions are paid. Therefore, you can make as many as you wish, of any amount and to anyone you want, without losing money/value.
- Offering instant transactions free of commissions makes NANO perfect for global adoption. I cannot see a future without digital, instant and free of commissions money. The world is prone to boost efficiency. If we ever end up adopting the use of cryptocurrencies, we will not do it through slow and expensive means.
- It is eco-friendly. Unlike Bitcoin, which consumes the energy of countries like Austria (and we do not even use it every day), NANO’s ecosystem holds up with the energy of a windmill.
- It is not inflationary. There is a maximum amount of NANO (133 million of NANOs, divisible in 33 decimals) which cannot be created or destroyed. Thus, if its demand increases, its value will go up. Unlike the dollar or the euro, NANO cannot be printed out of nowhere (this is rather important, since mathematically, something with a quantity which is infinite in theory tends to have a value of 0).
- The protocol is open and can be audited (in fact, it already has).
- Giving rise to speculation, its current value is 30 times below its historical maximum ($37 on the 2nd June 2018) and 1500 times below Bitcoin’s ATH (150 million dollars of capitalization vs. 215 billion).
In short, from my point of view, NANO not only offers the technical basis needed to accomplish a real decentralised economy (where money and global accounts are validated in a decentralised manner, instant and free of commissions), but it also offers a good starting point with a highly interesting growth rate potential, bearing in mind its current capitalization (only 150 million vs. 215 billion of Bitcoin).
NANO price prediction (cryptocurrency)
- Short-term (< 1 year) ≈ $2-10.
- Mid-term (1-3 years) ≈ $10-100.
- Long-term (3-10 years) ≈ > $1000.
(*) A sharp drop of the Bitcoin price and the cryptomarket might lower the price of NANO to $0.8, $0.5, or even $0.3. I do not think it would go beyond that, unless the project is abandoned completely, a new cryptocurrency overcomes NANO in both technical matters and decentralisation and adoption, or cryptoassets get banned in the US, Europe, and/or China.
Where can I buy NANO?
5. SOME CLARIFICATIONS
- The predictions of the cryptoassets price that I have previously mentioned are completely personal regarding their supply, possible future demand, and the comparison of capitalisation to bigger cryptoprojects that have not been globally adopted yet.
6. YOU HAVE NEVER INVEST IN CRYPTOCURRENCY AND YOU DO NOT KNOW HOW TO START?
If you have never invested in cryptocurrency and do not know how to start, read the following instructions for beginners (it’s pretty easy):
If you have any question, leave a comment! 🙂