When choosing an asset for investment, you need to start by collecting information about it. And at the same time, there is always some element of chance in your personal success or failure.
Why is it attractive to invest in cryptocurrencies?
The number of cryptocurrencies on the market is constantly growing. This is one of the indicators of public interest in digital assets. Both large investors and ordinary citizens invest in cryptocurrencies, hoping for a good profit.
Cryptocurrencies have been around for a little over 10 years. This is quite a long time for the first reasonable conclusions. First of all, even with a cursory glance at price charts, it becomes clear that cryptocurrency is a game for the long haul.
There is a fairly clear upward trend in the market. However, the high volatility of digital assets over relatively short time frames is ruthless to short-term investors.
How to choose a cryptocurrency for investment
When choosing a coin for investment, it is recommended to take into account the fundamental and technical indicators of the assets you are interested in.
The fundamental factors include the technical description of the coin, its roadmap, the presence of a real team, a community of fans and its activity.
If we are talking about coins that have existed for a long time, fundamental analysis is supplemented by technical analysis. Technical analysis methods make it possible to predict much more accurately the further behavior of a coin in market conditions at different time intervals.
What is Ethereum
Ethereum was launched in 2015. This is a cryptocurrency and blockchain platform, which is designed to implement a variety of projects based on blockchain technology.
Actually, the main value of Ethereum lies in the technical capabilities of the platform. On the basis of the Ethereum blockchain, projects for various purposes are launched: charitable foundations, non-fungible tokens, gaming applications, and much more. Launching your own project costs significantly less than developing your own blockchain.
The Ethereum (ETH) coin of the same name is used to exchange values on the network, as well as to create and operate smart contracts. The coin ranks second in terms of market capitalization.
Another GAS token functions in the network, which serves as a fuel for all types of transactions. Direct exchange of GAS to NEO and other cryptocurrencies is available on a small number of trading platforms.
The starting price of ETH was slightly above $0.7. The coin almost immediately began to grow and already in 2017 was trading above $1,300 for some time. In the fall of 2021, the coin set a price record at $4,812.
The Ethereum network is currently in the process of transitioning to Proof of Stake. In this way, it is planned to increase the throughput and scalability of the platform. The successful completion of the process, which is called the “Merger”, will give a powerful impetus to the further growth of the coin. In addition, ETH is gradually being introduced into the real economy as a means of payment.
At the moment, the coin is trading at just above $1,220. This is the minimum price for 18 months. However, the long-term outlook remains optimistic.
What is VERGE (XVG)
The coin was launched in 2014. Technically, it is one of the forks of Bitcoin. The creators of the coin have relied on increasing privacy and increasing the speed of transactions. XVG entered the market at a price close to $0.000004. At its high in December 2017, XVG traded at $0.25 but fell quickly. Now the price of the coin is about $0.003.
XVG has existed for a long time, its network is gradually developing and improving. Some online services accept the coin as a means of payment, but its use is very limited. The developers plan to increase network performance and implement anonymous smart contracts.
The fate of Verge now looks uncertain. On the one hand, the coin has already experienced several large-scale shocks. On the other hand, during the existence of the network, it has had numerous competitors and XVG does not stand out against their background. Limited supply of coins is not enough reason to exchange a large amount of ETH to XVG.
At the current stage of development of the digital asset market and in the context of the impending global economic crisis, analysts do not exclude the disappearance of a huge number of insufficiently competitive projects. Ethereum has already gained a fairly stable reputation.
However, before investing in any cryptocurrency, you should do your own research. In addition to the characteristics of the coin, you should consider your own financial capabilities, goals and risk tolerance.