By 13 February, the total capitalization of the stock market for the day grew by $17.6 billion, and the rate of the first cryptocurrency in the world rose by more than 10% to $8759. According to experts, following follow bitcoin other cryptocurrencies that will be the end of the bearish cycle, and investors will return to the stock market. We reviewed the cryptocurrency, which, according to analysts, will bring high returns in the long term.
The benefits of investment in long: how to identify the most promising cryptocurrency
Each capturador chooses the best and suitable strategy. However, experienced captainvalor warn traders from participating in short trades at this stage of development of the market due to potentially high risks. According to them, the best strategy now is to invest in a long position for a long period.
Unlike day traders who carry out transactions with cryptocurrencies within the same trading session, investors who prefer to invest in a long meet with less risk, is not subject to such high stress and pay less Commission fees. And to deal with high volatility of cryptocurrencies experienced tradery using the method of the DSA (of dollar cost averaging), which allows them to increase the portfolio by investing fixed dollar amounts at regular intervals.
To determine the value of the cryptocurrency and its prospects, the analysts of stock market consider the following factors:
Market share. The percentage of each cryptocurrency on the market it is possible to calculate by comparing its market capitalization with the total. The larger the percentage, the stronger the position of the cryptocurrency on the market. For example, today the market capitalization of bitcoin is more than 1/3 of the total — 34.9%. This ratio can be used as an indicator of long term viability of crypto-currencies in your portfolio.
The amount of usefulness. To objectively assess the potential of any cryptocurrency, you need to know the answers to the following questions: what is the practical value of this coin and does it have market and users. This is important because so you can understand what cryptocurrencies can become generally accepted. For example, one of the key useful advantages of ether and the Ethereum blockchain consists in the possibility of development and implementation of decentralized applications (DApps). While developers choose this blockchain in order to run their DApps, the overall usefulness of the broadcast will be not only stable, but perhaps with time will grow.
Transaction volume. The daily transaction volume shows how the cryptocurrency is now in demand among the participants of the stock market. For example, at the moment bitcoin in day passes about 195,115 transaction, ether — 799,836, and ripple — 809,646. This figure is usually growing with the development of cryptocurrency, making it a promising long-term asset in the portfolio.
Liquidity. High liquidity and transaction volume, shows how the cryptocurrency market demand. Moreover, these two indicators are interrelated. Liquidity is defined as the ability of assets to be sold quickly at a price close to the market. Low liquidity leads to high volatility, causing a large and noticeable change in the prices in the market. With higher liquidity creates a less volatile market, but rates of cryptocurrencies already changing, not so much.
Technology development. This is perhaps the key aspect of cryptocurrency. If the technology behind cryptocurrency, cannot fulfill its purpose in the long term this coin will not survive. For example, in Ethereum passed hardwork Byzantium, which is the first part of a massive upgrade of Metropolis, aimed at optimizing this blockchain network. Thanks hardface Ethereum now has a more rapid transaction processing, but at the same time reduced the award for the block from 5 to 3 ethers.
Market news. That is the news around crypto-currencies can significantly affect the rise or fall of its prices, and also the long-term viability and the size of the investor portfolio. In this connection, it is important not only to follow the news, but to be ready in time to respond to them.
Cryptocurrency in the long term
When choosing a cryptocurrency for long-term investment, in addition to their own analysis, it is also worth to see the cryptocurrency indices. They will help in the understanding of the overall trends in cryptocurrency prices and investor sentiment. Today on the market are available cryptocurrency indices like CRIX, Hold 10, CAMCrypto30 and index of the crypto and tokens DeCenter — DCI and DCI50, a list of which is recalculated on a quarterly basis. DCI includes 10 tokens and cryptocurrencies with the largest capitalization, while DCI50, also known as altcoins index, includes 50 cryptocurrencies except bitcoin.
The most reliable and promising cryptocurrency 2018:
The second cryptocurrency in terms of market capitalisation differs from bitcoin in the first place. Bitcoin is a means of storing and accumulating capital, and broadcast designed to work in Ethereum, where users have access to smart contracts and DApps development. Also, cryptocurrency is in partnership with one of the largest non-profit alliances, Enterprise Ethereum Alliance, consisting of financial and technology companies and foundations, including the Russian Sberbank. For investors, the course of the broadcast this year will overcome the mark of $2,000 and for 2018 will aim to $5000.
Market cap: $81.7 billion
Daily trading volume: $2.2 billion
The growth rate for the year: $11 − $838
Amount of coins: 97,585,773 (the current volume)
If bitcoin is the digital gold of the stock market, and the ether — digital oil, then litecoin is digital silver. The resulting hard forks of Bitcoin coin was founded by the famous developer Charlie Lee as a way to solve the existing problem in bitcoin. Since litecoin has a faster confirmation of transactions, low fees and increased storage efficiency. For 2018, the team of litecoin a lot of plans, for example, the creation of new payment services and LitePay LitePal. According to the investors before the year-end exchange rate of litecoin will be at $1000 per coin.
Market capitalization: $8.5 billion
Daily trading volume: $519.6 million
The growth rate for the year: $3.72 − $159
Amount of coins: 84 million
Cryptocurrency, monero appeared in 2014 as a result, the hard forks of Bytecoin network. The main advantage of monero is that it is a safe, untraceable and anonymous cryptocurrency that ensures privacy for users. This is possible through the use of CryptoNote Protocol based on ring signatures. In 2017, the cryptocurrency among the ten largest by market capitalization. However, among the critics Monero is widely believed that this cryptocurrency popular on the black market, she and other anonymous digital currencies used for sales and purchases of drugs and weapons. According to investors, the rate of monero by the end of 2018 will range between $470 and $530.
Market capitalization: $3.6 billion
Daily trading volume: $42.7 million
The growth rate for the year: $12.2 − $230.5
Amount of coins: 15,716,443 (the current volume)
The Ripple Protocol was launched in 2012 in China as a global system of mutual calculations in real time, which allows to carry out money transfers and currency exchange. The goal of Ripple is to provide instant and at the same time secure financial transactions around the world. Thus, the Ripple becomes the main rival SWIFT or Western Union. As for cryptocurrency ripple, it exists to maintain the platform and allows for financial transactions and to exchange any other currencies. Experts predict that in 2018, Ripple will be preferred cryptocurrency for carrying out banking transactions around the world, and the rate will vary between $5 − $7.
Market cap: $41.6 billion
Daily trading volume: $1.2 billion
The growth rate for the year: $0.006 − $1.03
Amount of coins: 100 billion
Cryptocurrency NEO is largely similar to Ethereum, however, many analysts believe that NEO will become a platform for the future of the decentralized economy. Launched in China in 2014 non-profit blockchain-NEO project aimed at developing a decentralized “smart economy”, intended for the creation and management of digital assets through smart contracts. In partnership with the project are companies such as Microsoft China, Hyperledger and Alibaba. Also the Chinese government is interested in the implementation of public services for digital identification, developed in the framework of the project. Experts believe that in 2018, the project will continue the development, in connection with which will grow the value of the accompanying cryptocurrency exchange rate to the end of the year will be between $200 − $250.
Market cap: $7.1 billion
Daily trading volume: $192 million
The growth rate for the year: $0.12 − $109.57
Amount of coins: 100 million
Stellar Lumens XLM
Cryptocurrency platform Stellar — Lumens — experts have called one of the most promising. In 2014, Ripple co-founder jed McCaleb together with Joyce Kim, Stellar launched as an offshoot of the Ripple network. Stellar platform ensures currency transactions in real time. From the outset, the developers of the project noted that one of their goals is to adhere to the principle of maximum transparency. Development of the project to interested companies such as Deloitte and IBM, and the organizers of the ICO begin to translate crudely on the platform Stellar. According to analysts, in 2018 XLM overcome a mark in $1.00 and will grow to a value of $1.25.
Market capitalization: $7 billion
Daily trading volume: $60 million
The growth rate for the year: $0.0021 − $0.37
Amount of coins: 103,689,123,972
A relatively young cryptocurrency blockchain platform NEM (New Economy Movement) holds steady in the top twenty leaders in market capitalization. Platform users have access to the system for the exchange of encrypted messages and multipolicy accounts, also on the platform works the reputation system Eigentrust++. The software used in the open NEM blockchain network Mainet, and commercial blockchain network Mijin tested financial institutions and private companies in Japan. Also works on the basis of the NEM platform COMSA, designated for the ICO. Analysts predict the rapid growth and development of not only the platforms NEM, but the accompanying cryptocurrency XEM.
Market capitalization: $4.9 billion
Daily trading volume: $30 million
The growth rate for the year: $0.0066 − $0.55