Top 5 Cryptocurrencies to Buy in 2018: Will They Hold Their Value?

Which Cryptocurrencies Should You Buy?

The world of cryptocurrencies is changing pretty fast. Investing in digital currencies seems to be a very rewarding idea. The recent increases in the values of digital currencies has awoken the interests of very many potential investors. Cryptocurrencies attracted more attention than gold, real estate and stocks in 2017.

It is for this reason that so many people are opting to invest in digital currencies over the long term. But which are the most promising cryptocurrencies to buy in 2018?

1. Bitcoin

As of 15th of December 2017, a single bitcoin was trading at about $20,000. The total market capitalization stood at about $200 billion. This represents a more than 1,200% increase in value in 2017 alone. No other investment can offer such lucrative returns. This made bitcoins the most popular digital currency in the entire world. Miners create bitcoins by solving complex mathematical problems.

Once you have bought bitcoins, it is important to keep them safe in order to prevent hackers from stealing from you. Financial analysts have made projections that the value of a bitcoin will have exceeded $100,000 by the year 2030. Bitcoins are the most heavily traded digital currencies. This has resulted in this currency gaining more and more popularity. In fact, Japan and South Korea have fully legalized the use of bitcoins in making payments.

Countries such as Austalia, India and Argentina are working on legal structures that will help in the adoption of bitcoin technology. Nothing has the potential of stopping the growth of bitcoins in the foreseeable future. It is for this reason that most individuals and investors are planning to invest heavily in bitcoins in 2018.

2. Ethereum

This digital currency comes second in terms of market capitalization. It is the world’s second biggest digital currency after bitcoins. As of December 2017, ethereum was retailing at $564, while its market capitalization stood at $48, 678, 905,000. Its value is not anywhere close to the value of a bitcoin but it still holds huge potential as an investment tool.

Ether has been steady in growth and more investors are gaining confidence that the positive trajectory will continue for very many years to come. Buterin Vitalik, the co-founder of Ethereum, was recently ranked as being among the top 50 most influential personalities in 2017. He had earlier on shared the future plans of ethereum. In the plans, he promised to help ensure that this digital currency contributes to the growth and development of digital currencies in the years to come.

3. Litecoin

Financial analysts and investors consider litecoins to be among the best bitcoin alternatives. The creators of litecoins sought to manage the flaws that had appeared in the initial bitcoin protocol. As of December 2017, a litecoin was selling at $140 and its market capitalization was about $7,000,000,000.

Having been introduced in 2011, its features resemble those of bitcoins. Historical graph performance indicate that litecoins have enjoyed an upward trend since their creation in 2011. It is expected that the upward trend will continue within the near future. Investors have confidence in this currency because Charlie Lee, the inventor of litecoins, is very transparent on what he does and plans for this currency on social media. Due to its high potential, any investor who intends to buy cryptocurrencies in 2018 must consider this.

4. Ripple

Ripple has been in existence since 2012. Unlike other digital currencies, Ripple was not created to help bypass banks and financial intermediaries. What Ripple does is to lower transaction costs and reduce transaction lead times when making inter-bank payments. It actually bridges different fiat currencies during transfers. This digital currency has a lot of potential in the future because governments and financial institutions are in its support.

In fact, as of December 2017, more than 150 financial institutions had agreed to work with Ripple as partners. Due to its surging prices, Ripple is ranked as the third most active crypto. As of December 2017, Ripple was selling at $0.74 with a market capitalization of about $28 billion. Ripple has increased in value by more than 300% in 2017 alone. With the acceptance and adoption by the governments and financial institutions, Ripple is set to grow bigger and bigger in 2018.

5. Monero

This is yet another decentralized peer-to-peer currency that is set to grow big in 2018. It is a private, secure and untraceable digital currency. It was launched in 2014, and since then, it has caught the attention of the cryptography community. This is the only cryptocurrency that is community-driven and donation-based. It intends to achieve scalability and decentralization and utilizes a technology known as ‘ring signatures’ to ensure complete privacy of transactions.

As of December 2017, the value of one unit of Monero was $362 with a total market capitalization of about $6 billion. Cryptocurrency enthusiasts are optimistic that the currency will continue appreciating in value in 2018. Since it began trading, it has appreciated by more than 1,400%. Despite experiencing high volatility at times, this digital currency is worth buying as an investment in 2018.