It’s the most obvious thing ever, and laughable for every financial trader, but beginners are asking which cryptocurrency to buy, and why. The answer they are getting is “Buy low, sell high.”
Those people who bought Bitcoin in the first year got 400 coins for around $1. That’s because all cryptocurrency prices start at near zero. The prices rise as the coins are bought. The more coins bought, the higher the price. At today’s prices, those 400 Bitcoins are now worth over $1 million.
Now take a look at every cryptocurrency with a coin value of less than €$1, say around 10 cents ($0.10). You should be able to find between 10 and 15 different coin brands right now. Let’s say you chose 10, and invest $10 in each. At this point you tell yourself that’s $100 gone, and forget all about it.
If just one of those cryptocurrencies rise in price to $10 per coin (compared to Bitcoin’s $2600) you have a return on your investment. If one rises to a respectable and very possible $200, your investment increases in value to a very healthy $40,000.
As with all assets that can be bought and sold, there is always risk to capital that should not be taken lightly, but there are few assets that can offer such returns, which is why cryptocurrencies are so popular. Are you willing to burn $100 for a chance at $40K?