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Investing in digital currency

Investing in digital currency

Digital currency is one of the hottest investment items of the 21st century. To those who invested in 2009 to 2011 they made big gains, and history has shown its more profitable to buy coins and hold them than mine, in the case of Bitcoin.

As digital currency has a capped supply, the more that is bought and held by different people, the less there is on the market to buy. As such more people buying and holding will push the price up, whereas large amounts being dumped onto the open market will decrease the price, simple supply/demand economics.

You do however need to apply caution. On forums such as BitcoinTalk and others, you will find many people saying to invest in this and that coin, as there are many knock-offs. The primary reason is to pump a coin to profit. Only stick to fairly launched coins and never invest what you cannot afford to lose. Right now, based on our research the honest coins that seem a ‘safe’ investment are the following.

  1. Bitcoin – The original cryptocurrency, what more is there to say?
  2. Litecoin – Fair launch, silver to Bitcoin gold, more mining interest.
  3. Ethereum – Seems an interesting investment, but speculation, future uncertain as move to Proof Of Stake mining.
  4. Monero – Stable development team, fair launch, uses the cryptonote protocol.

 

These seem a ‘safe’ investment, but of course do not invest what you cannot afford to lose. There are other coins, but these are the 4 which seem ‘stable’ with committed development teams. If a new coin seems promising and you invest a few dollars, you never know! Your writer personally puts a small amount away as ‘savings’ in Bitcoin and Litecoin every week, if the investment becomes later worth something more, than it is a bonus. I have watched my savings grow more this way than I would have ever earned in interest.

However, diversify any investment portfolio and do not bet your entire life on it! And also use it how it was intended to be used, as a currency wherever possible too!