How to Choose Cryptocurrency [Oohira]
Mr. Oohira's Profile
FX experience since 2009 and cryptocurrency experience since 2015. Utilizing cryptocurrency investment knowledge and past experience, he is distributing cryptocurrency information on major newsletter sites and investment sites. He participates in numerous individual investor networks and shares the knowledge gained from many investors. Since 2016, he has been operating a cryptocurrency investment information site where beginners can learn.
Blog:The Future Potential of Cryptocurrency - Investment Methods for Beginners to Earn
*This article is a reprint/edit of an article from FX攻略.com February 2019 issue. Please note that the market information described in the text may differ from the current market.
How to Choose Cryptocurrency
In this article, for beginners who are investing in cryptocurrency, we will introduce: "What kind of currencies should I choose?" and "What kind of investments should I make?" It is generally recommended to choose currencies with a primary focus on "market capitalization value of the currency" and "the currency’s functionality and practicality."
Image ① shows sites where cryptocurrencies are displayed in order of market capitalization value, and the site name is "CoinMarketCap." It is arguably the most famous site in the cryptocurrency genre worldwide.
There are currently over 1,000 types of cryptocurrencies, and at first it may be difficult to decide which currency to invest in, but choosing currencies with high market capitalization value, i.e., more actively traded currencies, is an important initial viewpoint.
Hedge funds that invest in cryptocurrencies often handle portfolios containing "Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash," etc. Most of these are currencies with high market capitalization. Currencies with low trading volumes tend to be high-risk high-return. Since hedge funds dealing with clients’ assets need to trade cautiously, portfolios are mainly composed of currencies with high market capitalization.
Harvard University, Stanford University, MIT, Yale University, and other prestigious U.S. universities are famous for investing hundreds of millions of dollars through their endowments, and they also invest in cryptocurrency funds. Currencies with high market capitalization and practicality are said to continue to see increased trading in the future.
