Today I wanted to go over how to invest in cryptocurrency and how to make sense of it all.
I will be using my Ethereum vs NEO example to help shed some light.
Don’t go into anything blind and there are a few things you want to understand when choosing which coins to invest in.
So lets take a closer look at some basic cryptocurrency investment strategies shall we?
How To Invest In Cryptocurrency
I wanted to talk to you today about the future of cryptocurrencies. Some things you have to understand before choosing which coin to invest in. When looking at ways of how to invest in cryptocurrency it can be confusing.
Now I don’t know if you are aware that different cryptocurrencies have different blockchains. These different blockchains offer different things. They also have different cryptos built on top of them.
For example Ethereum has it’s own blockchain. Ethereum also has a lot of ERC20 tokens which are built on top of it. All of these coins can be seen on the coinmarketcap website.
One thing you have to keep in mind. These other ERC20 tokens success is pretty much hedged on the success of Ethereum. So if Ethereum for some reason doesn’t do well. These other cryptocurrencies will collapse.
What do I mean by that? Well taking a look at the ERC20 Tokens list. There are almost 400 ERC20 coins at the moment. All of these coins are listed on the Ethereum blockchain.
Here are the top ten ERC20 coins:
How To Invest In Cryptocurrency – Ethereum
So technically if Ethereum was to tank or drop in value these tokens would to. You can look at coins like EOS, Tron, ICX etc. If you’ve been in crypto for a while you’ve probably invested into some of these coins yourself.
These ERC20 coins are all hedged on the main coin which is Ethereum. We know Ethereum has been doing great lately. We have seen all time highs of almost $1400 USD. Just a few months back ETH was only a few hundred bucks.
I do believe in Ethereum and the future of it. Ethereum creator Vitalik Buterin is also a great guy to have behind the coin. You just have to keep in mind that these other tokens that we look at and potentially invest in. They are hedged to the future of Ethereum and I want you to understand that.
How To Invest In Cryptocurrency – NEO
Same with NEO it’s sort of an Asian Ethereum I guess you could say. NEO is another coin that seems to have a great future. But you have to realize the coins that come off the back of NEO or the back of ETH. In order for those coins to be successful the main coin has to be successful.
I’m really trying to put this in simple terms so you can understand it. I have both noobies that read my blog and also experienced people. So I kind of want to level the playing field.
I am by no means a cryptocurrency genius this is just to the best of my understanding.
There are other coins as well that have there own blockchain as well. NEM, Cardano etc. They all offer different things.
Understanding how to invest in cryptocurrency is about keeping it simple. Or at least that’s what works best for me.
Whether you grasp this or not that’s not most important. I want you to understand the smart investments for cryptocurrency for the long term.
You’re probably sitting there saying to yourself. Why are these coins going to do so well in the future. It’s actualy quite simple.
If a lot of ICO’s are launching on the Ethereum blockchain. Or maybe they are launching under NEO. The only real way to buy into that ICO is having that main coin like ETN for example.
We can look at a coin like Red Pulse RPX which is build off the NEO blockchain. This is also a coin I personally invested in for the long term. If you go to the website and scroll down.
Here is a screenshot of the RPX ICO last year. You can see RPX Tokens could only be purchased with NEO.
How to Invest In Crypto – ETH vs NEO
So in this case a lot of money was coming into NEO when the RPX ICO went live. People investing and growing their crypto had to adapt.
One thing you have to keep in mind. Not all of these tokens will last forever. Not all of these tokens will be ‘THE ONE’ if you will. They can be successful in their own right. But I don’t personally see all of these tokens becoming the 10, 20, or 50 thousand dollar coins.
In my own opinion I think in 2018 or 2019 we are going to see ETH or NEO take a big pull ahead. I’m not 100% sure of what it’s going to be. I know 2017 was a big year for the ERC20 ICO’s. And they are still going very strong.
My gut tells me they will both do very well.
It will be interesting to see if a lot more ICO’s come on the NEO platform. If that happens it will send a HUGE pump in the price of NEO. if that happens it could potentially become very very profitable.
Most of you probably already knew this. But if you didn’t it’s something to keep in mind. A lot of these coins are hedged on these bigger coins.
I don’t want you to be just blindly investing in these different coins. You kind of want to know what’s behind them.
This year I will be putting a lot more energy into acquiring more Ethereum for these reasons. I do believe ETH is going to go up and be worth much more by the end of 2018.
How To Invest In Cryptocurrency – Conclusion
I believe in the future of Ethereum and I also think NEO has a great future. That is why I went in BIG with RPX.
The Asian crypto market is huge. If NEO really starts to take off it can give a huge boost to coins like RPX which you can get into for a lot less. They sort of feed off one another if you will.
You can also look at an ERC20 coin like EOS. If Ethereum keeps growing there is also a very good chance that EOS will grow as well.
At this moment I don’t own any NEO but it’s on my radar. I do own Ethereum but I want to definitely grow my ETH even more.
I will be adding both NEO and ETH to my crypto portfolio in 2018. Just wanted to write up this blog post to kind of educate you a bit. I have a lot of people that often ask how to invest in cryptocurrency and the which coins are best.
Please make a note you should always do your own due diligence. Do not invest more into cryptocurrency then you’re willing to lose. Remember I am not a financial advisor. You and you alone are responsible for any investment decisions.
If you’re going to be investing in cryptocurrency tokens and coins it’s good to have an understanding. Hope this helped.
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Cryptocurrency is looking to have a very healthy future.
Always remember to never put all your eggs in the same basket.
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