As the world of cryptocurrency evolves, it can be difficult to figure out which coins are worth investing in. For example, you may have heard about Bitcoin and Ethereum and want to invest your hard-earned money into these platforms. However, there are so many different cryptocurrencies on the market that it can be overwhelming for someone who is new to this game.
In this article, we’ll go over some of the best cryptocurrencies for short-term investment. We’ll cover what exactly makes them so great for short-term gains as well as their pros and cons.
Short Term Crypto Investment
Short-term crypto investment refers to the practice of buying and selling cryptocurrencies within a short time frame to take advantage of price fluctuations and potentially make quick profits. It is a form of aggressive trading, where investors aim to capitalize on short-term price movements in the cryptocurrency market.
Common short-term crypto investment strategies include day trading, where investors buy and sell crypto assets within a single day. By closely monitoring market trends and technical indicators, traders attempt to identify short-term price patterns and execute trades accordingly. Another strategy is swing trading, where investors hold crypto assets for a few days to weeks, aiming to profit from short-term price swings.
What is the best cryptocurrency to invest into today for the short-term?
If you’re looking to invest in cryptocurrency for the short-term, here are some of the best options.
Bitcoin is the most popular cryptocurrency, and for good reason. It has the highest market cap, which means that it has a lot of money invested in it. Bitcoin also has the most secure blockchain (the public ledger that records all transactions), making it less likely to be hacked than other cryptocurrencies.
Bitcoin has more liquidity than other cryptocurrencies: the BTC price tends to be less volatile because there are so many buyers and sellers on exchanges where you can buy or sell bitcoins at any time of day or night. This makes short-term investing in bitcoin easier than other cryptocurrencies which don’t have such high liquidity levels yet (although this may change soon).
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
Ethereum was the first blockchain to be launched in 2015 and is currently the second largest cryptocurrency by market cap after Bitcoin. It uses a blockchain similar to Bitcoin’s but also has its own programming language which allows developers to create their own decentralized apps on top of Ethereum’s blockchain.
Polkadot is a blockchain platform and cryptocurrency. It is designed to facilitate interoperability between different blockchains by enabling the exchange of data and transactions without the need for a trusted third-party. The native cryptocurrency for the Polkadot blockchain is called DOT.
Polkadot’s key feature is its ability to enable cross-blockchain transfers of any type of data or asset, not just tokens. It achieves this through its relay chain, which is built using Substrate, a blockchain-building framework developed by Parity Technologies. Polkadot’s state machine is compiled to WebAssembly (Wasm), which provides a high-performance virtual environment.
Cardano is a decentralized public blockchain and cryptocurrency project. It’s the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers.
Cardano’s technology aims to deliver more advanced features than any other protocol, with the goal of providing an accessible means for issuing and transacting tokens or digital assets in a secure and scalable manner.
Solana is a high-performance blockchain that’s designed to scale and process transactions at 1,300 TPS. It does this by using the sharding technique, which breaks the network into smaller pieces and allows each piece to process its own transactions in parallel. As more nodes are added to the network, more shards are created, increasing overall capacity.
Solana also has very low transaction costs: $0.0001 per transaction or less than 1% of what you’d pay with Ethereum or Bitcoin today.
Tether is a cryptocurrency that’s pegged to the US dollar. As such, it can be used to buy other cryptocurrencies. It’s also a stablecoin–meaning it isn’t subject to the volatility of other cryptocurrencies–making it an attractive option for those looking for something less risky than Bitcoin or Ethereum.
Tether has been around since 2014 and has built up quite a following among traders who want to avoid fiat currencies altogether and invest entirely in crypto assets like Bitcoin or Ethereum.
Binance Coin (BNB) is a cryptocurrency developed by the Binance cryptocurrency exchange, which was launched in 2017. It is the native cryptocurrency of the Binance blockchain and serves as the fuel that powers the platform’s decentralized exchange.
BNB has several use cases within the Binance ecosystem, including reducing trading fees, participating in initial exchange offerings (IEOs), and staking for certain investment products. Additionally, Binance burned a portion of its BNB tokens to increase its scarcity and raise the value of each remaining token.
Binance is known for its high trading volume and large user base, which has contributed to the popularity of BNB and its increasing market capitalization in recent years. Binance also offers a Binance Smart Chain, a blockchain designed for running smart contracts and creating new tokens.
Ripple is a payment network that uses blockchain technology to facilitate global financial transactions. Ripple was originally called OpenCoin, but the company changed its name to Ripple in 2015. The currency associated with the network is XRP (ripples).
It is designed to facilitate faster and more secure cross-border transactions. The XRP price can vary and is influenced by factors such as market demand and overall cryptocurrency market conditions
Dogecoin (DOGE) is a cryptocurrency that was created in December 2013 by software engineers Billy Markus and Jackson Palmer. It is based on the popular “doge” Internet meme and features a Shiba Inu dog as its logo. Dogecoin was originally developed as a lighthearted, fun cryptocurrency with a friendly and generous community.
Technical details of Dogecoin include being based on the Scrypt hashing algorithm, similar to Litecoin, and having a block time of just one minute. One unique aspect of Dogecoin is its inflationary supply model, where a maximum of 5 billion new coins are introduced into circulation each year.
Despite its origins as a joke cryptocurrency, Dogecoin has gained significant attention and popularity over the years. It has been used for various charitable causes and community-driven initiatives, and its community has been known for its enthusiastic and generous nature.
Shiba Inu (SHIB) is a meme-themed cryptocurrency platform named after the Shiba Inu breed of dog, which has gained popularity in the cryptocurrency community since its release in early 2021. Like other cryptocurrencies, SHIB operates on the Ethereum blockchain, which utilizes smart contracts to enable developers to build new tokens and applications.
SHIB has a total supply of one quadrillion tokens, which were initially distributed to Uniswap traders as a reward in an attempt to rapidly grow the platform’s user base. The platform has also launched a decentralized exchange for trading its native token, and announced the upcoming release of Shibarium, a new layered blockchain platform that will facilitate its own ecosystem of decentralized applications.
We hope that this article has helped you understand which cryptocurrency is the best investment for short-term. If you are looking to make some quick money and don’t have much time on your hands, then Bitcoin and Ethereum might be the best options for you. However, if you want something more stable with less risk involved then we recommend investing into Cardano or Polkadot instead as they both have promising futures ahead of them.