Bitcoin is the most recognizable cryptocurrency today, and it also has the largest market capitalization. On the one hand, this is a big plus, since the volatility of BTC has significantly decreased due to this, on the other hand, not every crypto trader is now suitable for trading bitcoin. For speculators who are interested in quick and risky earnings, popular altcoins willbe more relevant, the choice of which is more than wide today.

Индустрия The blockchain industry has experienced a lot of ups and downs in recent years: there has never been a larger price range than for crypto in any market. However, it is wrong to think that the good time for investing in virtual coins has passed. There are a lot of projects on the market today: both very young and long-known, investments in which can potentially bring a good profit. But you need to invest in them consciously, understanding the principles of cryptocurrency pricing.

What crypt should I buy? Let's take a closer look at the main and interesting virtual coins and the principles of their selection.

If you want to buy a cryptocurrency in your portfolio, first of all, it is important to understand the basics of such investment: have a basic understanding of blockchain technology, be able to create and manage crypto wallets, know how to conduct transactions correctly, and understand which cryptocurrency is best for you to invest in.

If you are new to the cryptocurrency market, then first of all, of course, you should pay attention to tokens that have long proved their stability. In addition to bitcoin, there are many of them. There is no clear answer to the question " Which crypt to buy?". There are many interesting projects – good and promising tokens. Therefore, before investing, make a detailed analysis of them. The following indicators can be used as a basis:

The higher it is, the more popular and less volatile the coin is. It is not difficult to calculate the capitalization: you need to multiply the current price of the cryptocurrency by the total number of coins in circulation.

Why know about it? Capitalization helps determine the degree of liquidity, stability, and potential of a cryptocurrency. Coins with a higher indicator are usually more liquid, which means that they can be used for active trading and speculation with less risk. They are also more resilient: they are less likely to have sharp unpredictable fluctuations in quotes, so it is easier to analyze such coins. High-cap cryptocurrencies are also often used for long-term investments, as they most often have large communities and resources for project development.

This indicator should also be high so that traders can easily buy and sell cryptocurrencies at the desired price levels. In simple words, a good coin has a high daily trading volume.

The size of the spread – the difference between the purchase price and the sale price of the cryptocurrency-depends on the liquidity. The lower it is, the more profitable the trade is for the trader. Especially the spread influence is felt during active speculations.

You can evaluate liquidity based on the depth of the market. If there are sellers and buyers at different levels, then the indicator is good. This increases the attractiveness of the coin.

These indicators are not easy to assess for beginners – they require knowledge of the specifics of the field. But, in simple terms, a good project offers several types of wallets for storing its token, and it is also supported by many third-party software developers. In addition, it is important that the network is protected from hacker attacks.

More advanced traders need to study the technical solutions of the project: blockchain technology and consensus protocol, and see what advantages they offer in comparison with other tokens. Transaction processing speed and scaling are also important. It is useful to investigate what security measures are used to protect user funds and the network from attacks. Even if you trade cryptocurrencies through a broker, such as FxPro, and everything is safe, the successful use of vulnerabilities by hackers can bring down the price of the coin.

This indicator is largely the result of the above three factors. If the cryptocurrency has a good capitalization, liquidity and is reliable, then it will be found on many exchanges and in the terminals of brokers. This makes it available for trading and interesting to invest in.

A deeper analysis of the potential growth of the cryptocurrency and its prospects requires taking into account many factors. In addition to the above, an advanced trader or investor should pay attention to the technical and fundamental characteristics of the project:

• Developers. A team of enthusiasts is behind the success of any business. Cryptocurrencies are no exception. If the developers of the coin are professional and popular personalities, this will attract attention and investment to it, which will have a positive impact on the crypto quotes.
• White Paper is one of the key indicators of a crypto project. If the stages of its development are thoroughly thought out and worked out, the concept, working mechanisms and promotion tactics are described, then this is a solid plus in favor of buying a token.
• Project idea. Those who are well acquainted with the crypto sphere should also look at the task that the project is supposed to solve. The more global and relevant it is, the greater the interest of investors and, as a result, the higher the growth potential of coin quotes.
• Partnerships. Interesting projects quickly find influential partners who plan to use the proposed technology. This significantly increases the interest in cryptocurrency.
• Expert opinion. Do not ignore the assessment of analysts and experts about the project and the prospects for the growth of the token value. Most often, they are quite objective and based on concrete facts.

If you decide to diversify your investment portfolio with crypto, then don't forget to take into account a number of risks that are relevant for all coins and the industry as a whole:

1. High volatility of cryptocurrencies. Since the market is new and partially decentralized, token exchange rate fluctuations can be very large in a short period of time. Especially for low-liquid coins. If your position stands against the market movement, it can lead to a quick loss of investment. Therefore, try to use a protective Stop Loss order, diversify your portfolio and trade proven cryptocurrencies.
2. Theft of assets from accounts on crypto exchanges and various types of fraud. If you look at the news, you will see that this problem is still relevant, despite the development of technology. Opening accounts with a broker can be much more reliable.
3. Inadequate regulation and risks of harassment. Not every country today recognizes cryptocurrency as a legitimate asset for investment. In addition, the tax rules regarding profits from crypto trading are also not transparent everywhere. Therefore, you should familiarize yourself with the local rules regarding virtual coins in advance and regularly monitor updates in the legislation of your country.
4. Loss of access to accounts. The decentralization of a cryptocurrency implies that the keys to access wallets are exclusively held by its owner. Therefore, if they are lost for any reason, it will be impossible to use their assets.

Based on the stability characteristics of virtual coins, we can consider several traditional examples of what cryptocurrency is best for a beginner to buy. This description cannot be considered an investment recommendation. The final decision and responsibility for the risks associated with completed operations are always left to the investor.

Cryptocurrency is a benchmark. It was the first, and even despite a rather strong fall in the exchange rate, it remains the most popular among traders and investors. You will find BTC on any crypto exchange and in the asset lists of brokers. It is a leader in terms of capitalization, reliability, and popularity. In addition, the dynamics of the bitcoin exchange rate affects the quotes of most coins. Despite the fact that its growth potential is limited, investors often prefer BTC for their portfolio.

The second most popular cryptocurrency, which is often singled out separately from all altcoins. This is the coin of the largest ecosystem of the same name, on the basis of which smart contracts and decentralized applications are created, including DeFi and NFT. This is a huge segment of the cryptocurrency market that supports the popularity and price of Ethereum at high levels.

Chainlink is a project for creating oracles that connects smart contracts with external data and APIs. Its LINK coin is used to pay for the services of oracles. The token is included in the list of the 30 largest by market capitalization.

This is the coin of one of the most popular and largest decentralized exchanges (DEX) Uniswap. The platform provides about half of all decentralized transactions, which supports the popularity of UNI. Cryptocurrency is included in the TOP5 by capitalization among DeFi-projects.

This blockchainplatform is focused on ensuring the security and scalability of smart contracts. National cryptocurrencies were successfully created on its basis. If the technology is used everywhere, it will be a strong prerequisite for the growth of the project token – ADA.

Choosing the best cryptocurrency for trading and buying largely depends on the trader's preferences, goals, and risk tolerance. This is a new financial market, the regulation and rules of operation of which are just being formed, so investors need to carefully evaluate the potential of cryptocurrency projects that offer their coins for purchase.

First of all, you need to analyze the financial indicators of tokens – capitalization, volatility and liquidity. Next, look at the goals and stages of project development, as well as its security. Stable cryptocurrencies, which have proven their reliability and potential, have long been in the leading positions. They are available for trading and investment on most exchanges.

You can also trade CFDs on cryptocurrencies with a broker. So FxPro allows you to make transactions with most of the most popular coins on a single trading account in the familiar and convenient MetaTrader terminal. An additional advantage of trading cryptocurrencies with a broker is a higher degree of protection of client funds from hacker attacks and fraud compared to trading on crypto exchanges. You can open an account with FxPro and start trading cryptocurrencies today.