So, you’ve done your research. You’ve read all the articles, watched every YouTube video, and listened to every podcast about the world of cryptocurrency. Now, you’re ready to take the plunge.
But before you do, there’s one important question that needs answering: which crypto should you buy today for long-term growth?
Well, unfortunately, this is a question that has no definitive answer. Cryptocurrency is an incredibly volatile asset class and predicting its future movement is virtually impossible. That said, there are a few factors to consider when deciding which crypto to buy today.
The first factor to consider is liquidity.
Liquidity refers to how easy it is to convert a crypto into cash or other assets without significantly impacting the price of the token in question. Generally speaking, cryptos with higher liquidity are more attractive investments because they can be sold quickly and efficiently if needed. For example, Bitcoin and Ethereum are two of the most liquid cryptocurrencies on the market today.
The second factor to consider is market capitalization (or “market cap”).
Market cap can be thought of as an indication of a crypto’s potential for growth over time—the higher the market cap of a cryptocurrency, the more likely it is to increase in value over time due to increases in demand from investors who believe it will be successful in the long run. Bitcoin currently boasts the highest market cap of any crypto by far at around $1 trillion USD (as of March 2021).
Finally, it’s important to look at a coin’s track record for seeing consistent gains over time.
While past performance does not guarantee future success, coins that have seen steady gains over extended periods of time may indicate a better chance for long-term growth than those that have seen sharp peaks and valleys in their prices over shorter periods of time (i.e., those that tend toward greater volatility).
Ultimately, there is no “right” answer when it comes to deciding which crypto you should buy today—it all depends on your individual goals and risk tolerance levels as an investor. With so many different cryptos available on today's markets, however, doing your own due diligence before making any purchase decisions can help ensure that you make investments that work best for your specific situation!
By taking into account factors such as liquidity, market capitalization and past performance history when choosing your next crypto investment opportunity you will be more likely to make informed decisions regarding which token best suits your investment strategy! Good luck!
Your Friend,
Wade
