What coins should you invest in when the crypto market is down? Ethereum (ETH) and Litecoin (LTC) might be good options for you – and here’s why.
The crypto market is known for being volatile. Just recently, on Monday many coins were down due to this announcement made by China. While many coins are beginning to recover from this, prices still haven’t re-adjusted to where they were at a month ago, for some even a week ago. This isn’t great news for current investors, but it does open the door for newer investors looking to get in on the market while it’s down.
The best time to invest in anything is when the market is down, and crypto is no exception. You could get a better deal this way and have a higher chance of turning a decent profit if you got in low. It should be noted that we’re talking about long-term investments here. There will be many dips and hills along the way; long-term investing is about being patient through the market’s many curves and waiting for the right moment to cash-out if you choose to do so. Obviously, you don’t want to sell when the market is down, but you do want to buy. It’s all about timing.
With the crypto market not yet fully recovered, here’s our list of cryptocurrencies that may be a good investment to get in on now for later down the road.
Why Ethereum? It’s not the cheapest coin out there (nor is it the most expensive), but it is the second highest ranking crypto by market cap, which is a good indication of the strength of the coin. It’s also important to remember that you don’t have to buy an entire coin; you can purchase a portion of ETH and still be considered an investor in it.
Ethereum isn’t just a digital currency. It’s an open-source network that was designed to be built upon. Ethereum has far more applications than, say, Bitcoin, and many ongoing and upcoming blockchain projects are using the Ethereum network, such as Faceter or Medicalchain. In fact, the majority of ICOs these days are launching on the Ethereum network. If developers believe this much in Ethereum, it’s worth noting.
Ethereum hasn’t been without its problems. Scalability is a huge issue that has been plaguing the network, and it has led to long transaction times and high transaction fees. However, if you’re investing in terms of asset collection, rather than wanting to use Ether to conduct multiple transactions, this issue may not affect you so much. The large, global team behind Ethereum is also constantly working to improve these issues, so scalability problems may one day be a thing of the past for Ethereum.
Currently, ETH is selling for $829.52. In the past 24 hours, it has increased by 11.71%, but even still, ETH is below $1,000 mark, which it had managed to achieve in January. Many believe that Ethereum will recover and trade above $1,000 again, making now a good time to invest in ETH.
Ethereum has proven that it’s capable of moving outside of the market trends. In January, when many of the other top coins were declining, Ethereum was climbing. Ethereum might be able to break out and do its own thing.
For these reasons, Ethereum might be one you’ll want to look into investing in before the market fully recovers.
Litecoin has similarities to Bitcoin, such as being a peer-to-peer facilitator and having a cap on the total number of mineable coins, but Litecoin comes in far cheaper than Bitcoin. Currently, Litecoin is ranked as the 6th largest cryptocurrency by market cap, with a market cap of $8.3 billion. Being within the top ten cryptocurrencies, Litecoin is definitely worth having on your radar.
Litecoin is toted as the altcoin that has yet to achieve its full potential. What is interesting about Litecoin is that it started as a fork from Bitcoin. Litecoin was therefore designed to be similar to the most dominate crypto out there, but designed in a way that would improve on Bitcoin’s downsides.
One of the biggest problems with Bitcoin right now is its slow transactions times and high transaction fees. Litecoin is supposed to fix these issues and so far, this is holding up. Litecoin transaction times are relatively fast (especially when compared to those of Bitcoin) and the fees associated with the transactions won’t be too painful either. This is because Litecoin blocks are created more efficiently and because Litecoin can use the Lightning Network.
Litecoin is currently selling for $150.70, increasing by 11.38% in the past 24 hours. That is still about $100 lower than Litecoin’s price from a month ago. If Litecoin truly is the altcoin still waiting to achieve its full potential, then now, when the market is lower, would be a good time to consider investing in the coin.
Given Litecoin’s rise in the ranks (as of January 4th, 2018, Litecoin was ranking as the 8th largest cryptocurrency, compared to its current ranking of 6th), Litecoin has a strong possibility of rising further.
Litecoin is considered an underrated coin by many. With the belief currently being pumped into Litecoin, LTC is a good long-term investment option to make before the market fully recovers.
Like our suggestions? Do your own research before committing to any tokens and always keep in mind that the crypto market is constantly changing. Things can be flipped on their heads before you can even blink, so be careful out there. Don’t hand over your souls to the crypto gods (and that goes for your fortune too).
Remember, this is about long-term investing, not short-term gains. Hold on friends, Hold on.
Featured image: Wells Fargo