“Every day, we see a slew of new and diverse coins emerge, presenting investors with a vast choice of investment opportunity. At the same time, we also see many crashes,” said Netmarble CEO and President Kevin Chou in an interview with Tech Crunch. “With a number of exchanges operating across the globe, there are many places to find users willing to buy, sell, trade or even dump their holdings.”
But all those opportunities don’t necessarily mean investing in every single one.
That’s the general idea behind an interesting post on UpInvestors, which aggregated seven of the biggest cryptocurrencies around today and assigned “believers” to each.
To qualify as a “believer” in a particular cryptocurrency, an investor’s previous crypto portfolio needs to be sufficiently large to allow the opportunity to accumulate more coins, according to UpInvestors.
If investors want to invest in a more specific cryptocurrency, they can select it from the list or type in the type of cryptocurrency they’re looking to invest in.
They can then pick from a wide range of outcomes — price prediction, top performing coins, cryptocurrencies which were in the news a lot, or currencies which have performed well in the past month, among others.
One thing that most believe-ers seem to agree on is that Bitcoin is not one of the most promising options for new investors, with only about 1.3% picking it as the most promising cryptocurrency, according to the data.
In fact, Bitcoin had some tough competition from other coins.
For instance, Ethereum ranked as a good bet by 45% of the believe-ers. The top three picks for Ethereum were Bitcoin Cash (28%), Ethereum Classic (11%) and Zcash (8%).
Meanwhile, Ripple ranked as the fifth most promising cryptocurrency for those looking for a hedge against Bitcoin (and a good bet by more than 40%), according to the data.
A fifth of the believe-ers chose Ethereum (11%), followed by Litecoin (9%), Bitcoin Cash (7%) and Ethereum Classic (6%).
The numbers were based on the number of coins that invest-ers owned at the end of July.
Still, there are good reasons why investors might be drawn to other coins.
Cryptocurrencies are more volatile and the market can be subject to manipulations. Since cryptocurrencies are digital, they are not regulated by any central authority like those in traditional finance, and thus lack the kind of strict checks and balances that keep the traditional financial system in check.
Bitcoin and Ethereum were particularly volatile in 2017, prompting critics to warn investors about putting all of their money in one coin.
But it’s unclear whether those volatility concerns have significantly hurt investor enthusiasm for cryptocurrencies in 2018.
“Despite investors’ worries about the instability of the market, demand for bitcoin and Ethereum remain strong, and major investors are still investing in digital currencies,” said UpInvestors.
Eventually there’ll inevitably come a time when cryptocurrencies are widely accepted as a standard payment, something which is already being witnessed with some new casinos coming online and allowing crypto deposits and equally honouring crypto withdrawals and payouts.