In the gig economy, amongst some of the reliable ways to create and generate wealth can be through an informed investment in the cryptocurrency market. The crypto market comes with a lot of potential opportunities, however keep in mind that the market is highly volatile and any mistake you make on the market will cost you your trading capital.
For you to be a cryptocurrency trader, you need a robust knowledge of how the market works. You need to understand how to use some trading tools and indicators. You also need to understand how to implement the risk management measures that will work for your peculiar trading preferences. Additionally, you need a robust knowledge of the top cryptocurrency selection to invest in. Without all this knowledge, you'll be revolving round a circle without any headway.
We curated this article to inform you of the top 10 cryptocurrencies that you may consider trading. You will also learn about the most common mistakes that beginners usually make, CFD trading in cryptocurrency, and how to trade CFD on the InvestGlo platform.
The deep roots of Crypto industry:
1. Bitcoin (BTC)
Bitcoin is the first cryptocurrency that was founded in 2009 by a group named Satoshi Nakamoto. Bitcoin, with the symbol "BTC" runs on a smart contract, distributed ledger, or blockchain across different computers. Since the introduction of Bitcoin, its value has continued to grow despite criticism by different levels of government. In fact, its total market cap makes up the bulk of the crypto market. Its trading volume is also the highest. According to Coin Market Cap, bitcoin’s price is BTC is $44,741.02.
2. Ethereum (ETH)
Ethereum, with the symbol "ETH" is another digital currency to consider including in your investment portfolio. ETH is the alternate to Bitcoin and Bitcoin Cash. If you already know of what decentralized financial systems and decentralized applications are all about, the Ethereum network birthed this innovation. With decentralized finance, people can now make cross-border transactions without recourse to banking institutions. According to CoinMarketCap, the cryptocurrency prices of ETH is $3,149.04.
3. Tether (USDT)
Tether is a stablecoin of repute. It offers instant payment processing, robust privacy, and fast cross-border transactions. Tether, with the symbol "USDT" gained prominence after the problem of volatility overwhelmed Bitcoin. USDT can process fiat transactions with the transaction experiencing volatility. According to Coin Market Cap, the price of USDT is $1.00
4. Binance Coin (BNB)
Binance Coin (BNB) is the native currency of the Binance platform. Traders and investors can use the BNB token to buy goods and services on Binance. They can also use the token to pay for transaction fees, as long as they are on the Binance platform. BNB is also intended to be used to make different payments, including travel, hotels, and schools. According to Coin Market Cap, the price of BNB is $354.19.
5. Cardano (ADA)
Cardano, with the symbol "ADA," was designed and developed by a former team member of Ethereum: Charles Hoskinson. He was supported by blockchain lovers and those with expertise in marketing, research and development, and IoT. At its core, Cardano was designed to revolutionize the financial ecosystem so that financial authority and the government at large will not have unbearing influence on the sector. According to Coin Market Cap, the price of ADA is $1.47.
6. Dogecoin (DOGE)
Celebrities and millionaires like Elon Musk have contributed greatly to the emergency of Dogecoin. Dogecoin, with the symbol "DOGE", started as a joke 6 years ago. In 2021, the project gained a lot of prominence due to the continued hard work of the team. The difference between Bitcoin and Dogecoin is that unlike the former, there is no limit to the number of Dogecoin you can create. According to Coin Market Cap, the price of DOGE is $0.001648.
7. Ripple (XRP)
Ripple made it to the number 7 spot. Ripple is a payment network that financial institutions rely on to facilitate cross-border payments. It is also a cryptocurrency based on a smart contract that you can trade to make a profit. Ripple, with the symbol"XRP," was created by the duo of Chris Larsen and Jed McCaleb. According to Coin Market Cap, the price of XRP is $0.8143.
8. USD Coin (USDC)
This is also another stable coin with great potential for growth. USD Coin is currently backed by the US dollar. In essence, every one USD Coin is equal to 1 US dollar. It comes with the symbol USDC and is powered by the Ethereum blockchain. According to Coin Market Cap, the price of USDC is $0.9997.
9. Polkadot (DOT)
Polkadot, with the symbol "DOT," was created by Gavin Wood. The intention of this cryptocurrency is to be a suitable alternative to Ethereum. Since the creation of DOT, the coin has continued to gain traction and attention on the financial market. Polkadot empowers developers to develop different blockchain for different use cases. According to Coin Market Cap, the cryptocurrency prices of DOT is $20.68.
10. Uniswap (UNI)
The last cryptocurrency on this list is Uniswap. It comes with the symbol "UNI." It is an Ethereum-powered cryptocurrency that relies on an automated liquidity model to facilitate payment processes. With Uniswap, there is no dependence on banking infrastructure to send or receive international payments. According to Coin Market Cap, the price of UNI is $27.93.
Mistakes To Avoid When Trading Cryptocurrencies
By now you should already know that the cryptocurrency market is highly volatile which means without adequate knowledge of the operation of the market you can potentially lose your trading capital to market forces. For you to be a professional trader, there are some mistakes you need to avoid as you trade the cryptocurrencies of your choice. Some of this mistakes to avoid include:
1. Lack Of Crypro Knowledge
The leading cause of losses by traders on the crypto market has been identified to be the lack of cryptocurrency trading knowledge. Without robust knowledge of the crypto market, you will just be moving around a circle without achieving any potential gain. Worst off, you will be putting your trading capital in jeopardy as any mistake you make will cost you your capital and you could suffer a loss.
Speaking about gathering enough crypto knowledge, some of the things that you should look out to learn include - the challenges of an average trader, how the crypto market works, how to implement the appropriate risk management measures, as well as the time to trade.
2. Using Your Life Savings To Trade
One major problem that we have found out among beginner crypto traders is that they tend to use all their life savings to begin their crypto trading career. This is a wrong move ethically. It is wrong to begin a new career using all the funds in your bank account.
What if your trading strategy does not align with the realities of the markets, don't you think you'll be losing all your life savings to market forces? Regardless of how promising the market appears, do not use all your life savings to trade.
Cryptocurrency CFD Trading
Unlike the narrative that investors were exposed to when Bitcoin first hit the crypto ecosystem, the situation is different now, as investors and traders can buy cryptocurrency with ease. The process of buying cryptocurrency is generally in 2 ways. The first way is to buy cryptocurrency through a regulated or registered broker. However, you must choose or pick a broker that is highly reliable; otherwise, you end up losing your money to market forces.
Secondly, you can also buy cryptocurrency through a method called CFD trading. At its core, CFD trading means the process of speculating between two different crypto pairs without directly owning any of the cryptocurrencies in order to make a profit. When engaging in CFD trading, keep in mind that what determines whether you will make a profit or lose your money to the market forces is the outcome of your speculation.
If you speculate that a certain cryptocurrency we appreciate at a certain time and the market reality aligns with the speculation then you will definitely make a profit. On the other hand, if the market realities go against your speculation what it means is that you are invested capital will be lost to the market dynamics.
Why Trade Cryptocurrencies With InvestGlo?
InvestGlo is a reliable online broker that can support your trading aspirations regardless of your budget. Whether you are a beginner or you have intermediary knowledge of the crypto-currency market, InvestGlo educational guide will take one through everything needed to know about the cryptocurrency market.
This is the number one reason why so many crypto traders across the world prefer our trading platform to our competitors. If you are still not convinced, the following features of our trading platform are what you stand to gain the moment you sign up for a trading account.
- Regulated Broker: Primefilm is one of the few online financial services that are regulated in South Africa. If you visit the website of the Financial Sector Conduct Authority (FSCA), you will find out primefilm is one of the licensed online brokers that has been approved by the government of South Africa to facilitate financial trading.
- Maximum Security: In terms of security, InvestGlo is one of the crypto exchanges that uses cutting edge security measures to protect the capital of traders. To guarantee that a third-party cannot access your trading account, we have integrated two-factor authentication so that the moment a third-party attempts to access your trading account, you will receive a login code that must be authenticated before access can be granted to your trading account.
- Education Resources: If you don't know a thing about the cryptocurrency market, we have educational resources that you can access information or rely on to keep yourself abreast of the happenings in the cryptocurrency ecosystem. Unlike other exchanges, our educational resources are simplified in such a way that even a novice will understand the terms and terminologies associated with the crypto ecosystem. Unlike other exchanges, our educational resources are simplified in such a way that even a novice will understand the terms and terminologies associated with the crypto ecosystem.
- Diversification: At InvestGlo, we encourage portfolio diversification. We know the consequences of investing on a single financial asset. And that is why we have created an enabling environment where investors and traders can easily diversify their portfolio to avoid market risks. If you want to diversify your portfolio, you can choose from a range of over 300 financial assets, including pure metals, commodities, indices, oil, stocks, ETFs, as well as foreign exchange (FX).
- A Wide Variety of Trading Tools: Our trading platform supports a wide range of trading tools and indicators. These tools and indicators are developed with beginners and experts in mind. The advantage of using a trading tool to access the crypto market cannot be overemphasized. First, if you have a 9 to 5 job that takes most of your time, and you didn't have the time to analyze the cryptocurrency market, you can rely on these trading tools to determine the exact time to buy a coin, the exact time to sell the coin, and the best trading strategy to implement. You can even use these training tools and indicators to customize your trading style so that all your trades are applied on auto-pilot.
How to Trade Cryptocurrencies with InvestGlo (CFD Method)
You recall we made mention of CFD method of trading cryptocurrencies, where you can speculate on the price differential of a cryptocurrency pair to make a potential profit. InvestGlo gives you that opportunity to trade cryptocurrencies without owning the financial assets. Below is a step-by-step guide on how buy or sell cryptocurrencies on the InvestGlo platform:
- Visit the InvestGlo website, accept cookies, and navigate to where you find "open a trading account." Click on the button and complete the account opening form with your personal data for free.
- Once you receive a mail that your account has been opened, proceed to deposit your trading capital through any of the supported payment methods.
- Search for the coins you want to buy/sell on the market keeping in mind audience insights.
- Implement a risk management measure to mitigate the inherent risks on the cryptocurrency market.
- Place a buy or sell order and monitor your portfolio via our mobile app.
Final Thoughts
As you know, the cryptocurrency market is one of the most liquid and fast-paced markets. The market is highly volatile; as such, traders must put in place adequate risk management measures to avoid losing their trading capital to market. To cap market risks, you can take advantage of the trading tools on the InvestGlo platform.
We have tools that help you analyze the market for potential opportunities. Whether you want to trade Cardano, Dogecoin, Ripple, or Bitcoin, these tools will insulate you from market risks. Additionally, don't forget to use a demo account to practice your trading skills before trading with a live account. It will save you the stress of learning the nitty-gritty of the market while putting your trading capital in jeopardy.
The good news is that here on the InvestGlo trading platform, we have a user-friendly demo account that you can use to practice all your trading skills that you have learnt on the cryptocurrency market. Once you are confident that you can trade using a live account, you can proceed to open a live trading account to start trading.
The only demerit of using a demo account is that you won't make any real money; however, you will learn all the features of the crypto market and also learn all the tactics and techniques that professional traders use to maximize their stay on the market.
Frequently Asked Questions
Which Cryptocurrency is best to invest now?
There are so many cryptocurrencies that are viable for you to invest now. However, the top three coins include Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH).
What are the top 10 Cryptocurrency companies?
The top 10 cryptocurrency companies are Bitcoin, Ethereum, Tether, Binance, Cardano, Dogecoin, Ripple, USD Coin, Polkadot, Uniswap. These coins were cheap at the inception, but with the right technology, the team behind these projects has been able to accelerate their growth.
What is the cheapest Cryptocurrency?
The top 5 cheapest cryptocurrencies in the world as of the time of writing this post are Uniswap (UNI), Polygon (MATIC), Basic Attention Token (BAT), Chiliz (CHZ), as well as Tron (TRX). These coins are indeed very cheap to buy.
What are the 4 types of Cryptocurrency?
While there are different types of cryptocurrencies in circulation, the top 4 cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tether (USDT).
The information above is for education purposes only and cannot be considered as investment advice. Past performance is not a reliable indicator of future results.
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