Recently, we observed a bearish trend on the cryptocurrency market. Even though, there are a lot of interesting news about cryptocurrencies, and there’s one thing that matters more for investors: profits. A few weeks ago, on February 6th, Bitcoin reached a low of $6,259 according to CoinCodex. Since then, the price has been fluctuating reaching $11,858 on February 20th. One of the things that you should know is that on January this year, Bitcoin had the lowest level of market dominance with a 32.46% value. Today, we can see that Bitcoin has recovered a good part of his market dominance – with 44.3% at the time of writing. Bitcoin lighting network is right around the corner, and with it may come a new wave of merchants ready to start using Bitcoin as a means of payment.
If you have recently started to invest in cryptocurrency or you want to, it’s important to know that the market is extremely volatile. Which means it can either scary you with a 50% drop overnight or it can reward you with 100% gain. What matters is to know when to invest and in which cryptocurrencies or assets.
A bear market is not the best time to invest if you’re a novice in trading, the market may crash down even more and you can lose a good amount of your investment. Unfortunately, no one is able to call with a 100% accuracy when the market is crashing or mooning – so it’s important to learn Technical Analysis.
What are the safest cryptocurrencies to invest in on a bear market?
Here is a list with the safest cryptocurrencies to invest in. This should not be taken as an investment advice. It’s important to know that even these cryptocurrencies can decrease with 20-30%, depending on the market.
Ethereum is one of the most known cryptocurrencies. Started as an ICO with a rate of 2000 ETH per Bitcoin in the early presale – Ethereum was one of the most rewarding ICOs in the terms of investment. Introducing the term of Smart Contracts, it brought something new and unique to the cryptocurrency market.
Since middle 2017, Ethereum started to grow – reaching a top of 0.151 BTC in July 2017. That was without a doubt the perfect moment to sell ETH until now. We used the ETH/BTC ratio in order to calculate the profit in BTC. It’s important to notice that in the December 2017 – January 2018 period, Ethereum increased in USD value with more than 300%. But the ETH/BTC ratio had only a 0.111 maximum.
Even though, Ethereum’s price decreased since then – it’s still one of the most used cryptocurrencies and one of the best investments. Exactly a month ago, Ethereum had a value of $923. Today a low value of $460 was reached – with the price sitting at $534 at the time of writing. Even at that price, Ethereum is a cryptocurrency that can keep increase its value in the future.
NEO – the famous non-profit community-based blockchain project – is a cryptocurrency that couldn’t be missing from the list. It started as an ICO too – with a $0.03 per NEO price. Since June 2017, NEO had one of the most amazing uptrends from the cryptocurrency community – reaching a $160 all-time-high.
On March 18th, NEO reached the lowest value of 2018 : $49.49. At the time of writing, the price is $66.15 – a 30% increase in just a matter of hours. This may be the bottom value for NEO until now – but every markets suffers corrections and unexpected drops.
Besides the price, it’s important to know that NEO offers dividends for its token holders. The dividends are paid in GAS. More informations about this can be found on NeoToGas.
Monero – one of the most used privacy cryptocurrencies – is another good investment. Created in 2014 by Nicolas van Saberhagen – Monero brought the idea of privacy to the cryptocurrency market. If you want to find out more about Monero, you can read more by checking their wikipedia page or by reading the BlockGeeks guide.
From the investment perspective, Monero made a lot of early investors happy. On this time last year, Monero was worth about $13. Yesterday, Monero dropped to a $175 value in USD and 0.0237 BTC. At the moment of writing, the USD price is $211,64 while the BTC value is 0.0253.
Even at this price, Monero is considered a good investment option. The community is extremely helpful and recently news appeared about a potential integration of Monero on the Ledger wallet. Over the past month, the average price was above $250 and many investors tend to believe that the price will reach $500 this year.
Litecoin is also one of the most used cryptocurrencies. The low transfer fee and fast transfer times have made of Litecoin a cryptocurrency used by hundreds of thousand of people. Recently, Litecoin experienced a 30% growth in a day passing the $200 mark. The news that influenced were covered by us on a past article.
At the moment of writing, Litecoin is being traded at around $155. Even though, the market suffered a serious drop yesterday, Litecoin price seems to be unaffected. The lowest point that Litecoin touched yesterday was around $138 in USD value and 0.0187 in Bitcoin value.
Litecoin is not an investment where you can gain an easy profit in a short time. We recommend Litecoin as a long term investment as the price is has not reached its peak yet. Some people predicted that Litecoin will reach $400 in 2018 while other believe it will pass $1,000. One thing is clear – Litecoin has room to grow a lot more.
There are even more cryptocurrencies that are worth buying, but we selected the ones that we believe are the safest to invest in. Why are these cryptocurrencies considered the safest? Because all of them have chances to recover after a market crash as they are commonly used by cryptocurrency enthusiasts.
There are also a few riskier ones that might grow even more, that’s why we recommend to do your own research when you’re buying and always respect the golden rule : Don’t invest more than you are able to lose. The Cryptocurrency market is way more volatile than a normal one – which can scary even an experienced stock trader or a financial expert.
Keep in mind that a bear market is riskier than normal. We suggest you to buy small amounts of cryptocurrency at a given price and not all at once.
Example : Ethereum’s price is $800. You have $800 to invest. The price dropped to $750. You can buy a 10-20% here. If the price drop even more – you may buy another 10-20% and so on. Accumulating slowly is less riskier than buying all at once.
This is a guest post and should not be treated as an investment advice. It’s just a trader’s opinion over the market volatility and how you can profit from it.