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How to choose a cryptocurrency for investment? What to consider and what to pay attention to?



Cryptocurrency trading can be very difficult due to unexpected fluctuations happening in this market. Therefore, the formation of a crypto portfolio must be approached with extreme caution.

By learning to professionally expand your assets, you can avoid big losses during market shocks. Strong cryptocurrencies are less exposed to risks than little-known altcoins. Therefore, choosing new tokens for long-term storage, it is necessary to carefully analyze them.

Bitcoin vs altcoins

Many crypto traders prefer to invest only in Bitcoin (BTC) . Bitcoin has many unique qualities. This is the first successful cryptocurrency in the world, and its market share is an impressive 68%. Because of this, market volatility is often associated precisely with fluctuations in the rate of BTC. Due to its place in the cryptocurrency market, Bitcoin is one of the most reliable digital currencies. Most analysts agree that the likelihood of a Bitcoin crash is less than that of altcoins.

When used properly, altcoins can become powerful investment tools. The exponential growth of the cryptocurrency market is largely due to the success of the largest altcoins such as ether, XRP and lightcoin. Now there are thousands of different altcoins. On the one hand, this gives the investor unlimited freedom of action in the market, on the other hand, it forces the most responsible approach to choosing the right asset.

Poorly managed cryptocurrencies can collapse and depreciate in the blink of an eye, which happened with Bitconnect . That is why, before stopping on something, you need to carefully study everything. Let's get acquainted with the most basic concepts of the cryptocurrency market, without the knowledge of which it is impossible to start building your portfolio.

Compare the total issue volume and the number of tokens in circulation.

If you want to professionally approach the formation of your cryptocurrency portfolio, you need to understand how the ratio of the total issue and the number of tokens currently in circulation will affect the market value of the asset you are interested in. It is simply a matter of supply and demand. The greater the demand, the higher the price. If demand exceeds supply, price will always rise.

For example, the total amount of Bitcoin emissions is 21,000,000 BTC. After the 21 millionth bitcoin is mined, their release will cease. Now in circulation are 17 867 887 BTC. This means that miners have to get less than 4 million bitcoins. As the number of tokens in circulation approaches the total issue volume, it is logical to assume that as the deficit develops, the BTC rate will increase.

The same principle applies to investments in altcoins. Even with high demand, the price of cryptocurrency is unlikely to increase significantly if the supply is large. It's like in an old saying about the sale of snow to the Eskimos. If miners have to get billions of tokens, then in the long term, the growth in demand will be easily satisfied without a sharp increase in the rate of this cryptocurrency.

Explore Decentralized Platforms

Should be taken into account and certain differences related to the field of management. Decentralized projects do not have a president, and the community controls everything. These are open source projects, and most of them can be verified using the Github service.

Decentralized platforms are the basis of the cryptocurrency market, and many believe that the whole ideology of crypto space is based on the idea of decentralization. BTC does not have its own office. Bitcoin is just a mathematical formula that exists in the crypto space. This is what makes BTC “a genuine peer-to-peer payment system,” as stated in an article by Satoshi Nakamoto.

Decentralization has its drawbacks that you need to consider when creating a reliable crypto portfolio. The main disadvantage is that you have no one to demand compensation for losses if you are deceived by scammers or you accidentally sent your money there. There is no office where you could send a complaint, and no return is provided either. If you are dealing with decentralized cryptocurrencies such as bitcoin, errors in working with the blockchain can be expensive.

Explore centralized platforms

Centralized cryptocurrencies are managed like regular companies. Such projects usually have a president and head office where you can apply. Centralized cryptocurrencies try to comply with the requirements of supervisory authorities. Examples of such cryptocurrencies are Neo and Ripple , which are created taking into account the likely future requirements of regulators.

Centralized cryptocurrencies also have their drawbacks. And here is the main one: developers fully control the creation and use of these tokens. There were cases when networks were hacked by hackers, and instead of incurring large losses, developers preferred to do hard fork and create a new currency, depreciating the old one. This is exactly what happened with the broadcast in June 2016. As a result, ether (ETH) and Ethereum Classic (ETC) appeared separately.

Rate the project

Read the White Paper of the project you want to invest in. Never invest in a project whose goals are not clearly and thoroughly explained in White Paper. This is a very bad signal and the most risky way to build your portfolio.

White Paper provides a brief overview of the market situation, and it should also say why there is a need for such a platform. In addition, there will be a technical section containing information on the internal structure of the platform. Experienced investors prefer to invest in open source projects. This means that the community can evaluate the work of developers and help them, making the code more efficient and reliable.

A good White Paper also includes a roadmap showing how the company plans to grow at various stages. There will also be a section "Team", which will contain information on leadership skills and experience of developers. Contact the team representatives on social networks and ask them your questions. If they answer you, this will be a good sign showing that the project is actively developing.

Stay tuned for the latest news.

The cost of cryptocurrency can greatly depend on what is written about it in the cryptocurrency media. The best cryptocurrencies are constantly featured in the news, their teams are actively talking about how these projects are developing.

Always check the reliability of news that can increase the rate of a particular cryptocurrency, for example, if it is a question of the fact that this cryptocurrency has begun to be traded on a large exchange .

Responsibly approach the formation of a cryptocurrency portfolio

Blockchain made a technical revolution in a wide variety of fields. In the coming months, cryptocurrencies will continue to gain popularity and further growth of this market can be expected.

Follow the tips from this article and responsibly approach the formation of your cryptocurrency portfolio by choosing the most promising options.

Publication date 08/10/2019
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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold



Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?



In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.

If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?

Cryptocurrency Staking in 2020

A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.

But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.

  • Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
  • Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.

Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?

To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.

Staking and cryptocrediting are not the same thing

Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.

Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.

Real ROI and Volatility

Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.

  • PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
  • Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.

Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.

Number of platforms available and conditions

Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.

PoS Coins

Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:

  • Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
  • Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.

Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.

Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on – only 6.1%.


This type of digital asset can be deposited on various lending platforms:

  • Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
  • Decentralized – Compound, Nuo, dYdX, Aave and others.

It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.

Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.

Risks: interest in the project

We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.

Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.

Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.

In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.

And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.

Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.


Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.

Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .

If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.

As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.

Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard



This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Bitcoin Cash (BCH)
Stellar (XLM)
Litecoin (LTC)
Cardano (ADA)
Tether (USDT)
Monero (XMR)


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