3 Tips for Choosing the Right Cryptocurrency for Short Term Investment

We would lie to you if we told you that the crypto market isn't a volatile one. Therefore, before you start doing anything, you always have to know exactly where you are investing your money and what risks are associated with it. 

Moreover, let’s not forget that some cryptocurrencies might be better for long-term investments and some for short-term investments. However, there are many ways to benefit from short-term investments and get cash quicker than you think. 

There’s a reason crypto is so volatile, but don’t go anywhere because, in this article, we will show you the three tips you should follow in choosing the right crypto for a short-term investment. 

3 tips to follow for choosing the best cryptocurrencies for your short term investment 

1. Ensure you have the necessary financial foundation 

Before you invest in crypto, you need to ensure you have enough financial resources. We don’t want you to put all of your savings in and lose all of your money. It’s always important you assess the risk of crypto before investing in it, especially when it’s a short-term investment. 

The problem with short-term investments in the crypto world is that many crypto coins have price fluctuations. You can lose and win a huge percentage in just a few hours. You should only invest the amount of money you feel you don’t need. Don’t go all in, it’s one of the biggest mistakes to make! 

2. Choose the right crypto platform 

Before you start investing in crypto, you need to ensure that you choose the right platform. Then, you can easily buy crypto through traditional finance apps such as PayPal, and Cash App, which allows you to purchase different cryptocurrencies on popular crypto platforms. 

Some popular trading apps include Robinhood, Binance, Coinbase, and more. These crypto platforms support an extensive range of cryptocurrencies and have a high level of security. Significantly, if you are investing short-term, you will need a platform with low transaction fees when trading. But, of course, if you trade too often, that may lead to significant losses when transaction fees are high. 

Popular crypto exchanges that we mentioned above give investors some type of insurance in case of any cybersecurity breaches and help protect your financial assets from cybercrimes. Moreover, these are licensed businesses, so they are the middleman between you and your financial assets. After all, when the platform you are investing in isn’t secure, it can only take a simple purchase to make you lose your assets. 

If you want more ownership of your financial assets, you can always transfer your crypto to a crypto wallet after purchasing from a centralized exchange such as Binance or Coinbase. 

3. Choose the right coin to invest in 

Before we go anywhere, here are the top short-term crypto coins we recommend you invest in. 

Ethereum (ETH) 

Source

The second-largest cryptocurrency in the world after Bitcoin, Ethereum holds one of the largest spots in the crypto world. It currently has a market cap of $380 billion and a supply rate of $12.6 billion. The price of Ethereum staggered only last month and fell to half of its all-time high, which was around $4,700. Currently, it stands with a value of $3,400 and is expected to rise soon.

However, we can never predict what will happen in the crypto world due to its high volatility rate. Nevertheless, Ethereum is a favorite for program developers because of its potential for applications and NFTs. 

In fact, only recently, Mastercard and Visa got accepted as payment methods for buying NFTs. On the other hand, Ethereum was always a standard payment method since NFTs are compatible with anything that is built around Ethereum. 

Back in 2016, Ethereum had a market value of $12. However, it managed to hit the four-digit mark in five years. Even today, with its price fluctuations, it is a more stable cryptocurrency compared to others and might make you significant profits in the short term. Therefore, we recommend investing larger amounts of money when investing in Ethereum. 

If you wonder how to buy Ethereum with credit card, you can do so on popular platforms like Coinbase, Binance, Gemini, MoonPay, etc. 

Terra (LUNA)

Source

Terra is in the top 15 largest cryptocurrencies in the world, with a market cap of $31 billion. It’s a blockchain payment platform used for stablecoins and primarily relies on keeping two cryptocurrencies balanced out. Terra has backed stable coins such as TerraUSD, which are tied to physical currencies. Comparatively, Terra (Luna) is used for minting even more Terra stable coins. 

The current value of Terra (Luna) is around $95; however, it reached an all-time high of over $110 and is predicted to rise even more. Therefore, investing large amounts of money can get you some good profits with Terra (Luna), especially in a year, considering it a very stable coin. 

Green Metaverse Token (GMT) 

Source

The green metaverse token (GMT) held a value of only $0.10 at the beginning of last month and has already grown to over $2. Only last week, it reached an all-time high of $3.15. Its market cap was under $100 million and has grown to over $1.7 billion. Investors seeking to make high profits in a month or a week will invest in this token. 

Otherwise, GMT is a governance token of STEPN and has a limited supply rate of $6 billion tokens. However, GMT might reach 80%-90% of its maximum supply rate anytime soon, so now is your chance to gain some profits in your short-term investments. 

Cardano (ADA) 

Source

Cardano decreases the amount of energy used for transactions and removes the transaction verification process in platforms such as Bitcoin. Similar to Ethereum, Cardano enables smart contracts and decentralized applications powered by its native coin, ADA. Overall, it has a market cap of $32 billion. 

Cardano’s price range is around $1, but it reached an all-time high of $3 only a few months ago. However, Cardano is continuously bringing in innovations, so we should expect a surprise all-time high from it by the end of the year. Therefore, now is the best time to invest in Cardano since its value is at a low rate. 

Polygon (Matic)

Source 

Polygon solves some common pain points in the crypto world, offering very low gas fees and high speeds without sacrificing any security. There are already more than 6000 development apps onboard. As of now, it has a market cap of $10 billion and a current price of $1.40 and reached an all-time high of $1.75 only a few months ago. 

There’s a lot of potential in Polygon, and considering that it has a low price and low market cap compared to the other cryptocurrencies, it might be an excellent investment to consider for the short term. If the crypto market booms, Polygon will be one of the coins to gain value quickly. 

Fantom (FTM) 

Source

Fantom only recently announced a $480 million grant program. It’s a highly scalable blockchain platform for enterprise applications, DeFI, and crypto development applications. Fantom’s market cap is currently at $3.2 billion, holds a current price of $1.20, and reached an all-time high of $1.70.  

The crypto coin gained fast notice in the market, however, it staggered a little when the crypto market crashed in February. However, it gained value quickly, so it’s an excellent option for short-term investments. You would lie to yourself, thinking it isn’t a good idea to invest in this coin! After all, only last year, Fantom held a value of only $0.16 and managed to surpass the $1 mark in a short period of time. 

Wrapping it up

That’s all for this article. These were our top tips for which cryptocurrencies to choose for short-term investments. Even though thousands of crypto coins are on the market, it doesn’t mean all of them are beneficial to invest in, especially in the short term. Some coins may rise in value for a few days and never do so again. You don’t want to fall into a trap of investing in a coin that will result in massive losses. That’s why no matter what, you need to do your research. 

The coins we listed are excellent for short-term investments, but some of them are better when you invest more money in them. After all, the best time to invest in the crypto market is right now, since it crashed only a month ago and is slowly recovering. Unfortunately, prices are down, and that’ll only mean gains for you when they go up! 

So, don’t waste any time and go out there and invest in crypto!