Are you a seasoned financial expert, investor, or just a regular guy looking to get into crypto? You could learn how to invest 5k into the market in no time. It’s as easy as it sounds. Once you know why you are getting into crypto, carry out your research on the best platforms and coins to buy, you can kickstart your journey into the crypto world. You will learn more about this in the course of the article.
Also, if you’re still on the hunt for a great crypto exchange, we’ve got 5 of the best to check out right here.
Why Get Involved In Cryptocurrency?
Cryptocurrencies are often seen as stores of value and they represent a revolutionary technology that could transform almost all industries. This alone gets people excited about the idea of crypto. Coins cannot be seized or printed and this decentralized dimension of finance gives more people control of their money.
Although much speculation and volatility remain in the crypto world, getting involved seems to be a good idea because apart from being safe, fast, and accessible, it could well represent the future, effectively replacing traditional banking systems.
Where To Invest 5k? Buy These 5 Coins
After deciding to join the crypto bandwagon, you might find yourself lost at sea with thousands of coins in your face. The safest bet on your 5k remains to buy valuable coins that are backed up by a strong project and community of investors and users. Currently, Enjin, Sushi, Stellar, XRP, and Shiba Inu are at the top of the list for several reasons, which you would discover shortly.
Coin 1 – Enjin Coin
Enjin is a software that gives developers the ability to create and manage virtual goods on the Ethereum blockchain. The idea is that by using blockchain technology to manage in-game items across many different properties, Enjin can help reduce the high fees and fraud that have plagued the transfer of virtual in-game goods and collectables. Toward that goal, Enjin has released software development kits (SDKs) allowing users to both create digital assets on Ethereum and integrate them into games and apps.
Each minted asset is customizable to fit the desired platform and recorded in a smart contract, giving the items the advantages of cryptocurrency, namely speed, cost and security. Central to managing the digital assets on its platform is ENJ, Enjin’s cryptocurrency, and each in-game item created on Enjin is assigned a value in ENJ. Bottom line the potential this coin has is massive, and I’d recommend checking out there nft platform it’s very cool and still in its beginning stages. Enjin is easily a coin that could get over the 10 billion market cap and one you should not sleep on.
Coin 2 – Sushiswap
SushiSwap is a software running on Ethereum that seeks to incentivize a network of users to operate a platform where users can buy and sell crypto assets. Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal. Users first lock up assets into smart contracts, and traders then buy and sell cryptocurrencies from those pools, swapping out one token for another. One of a growing number of decentralized finance (DeFi) platforms, SushiSwap allows users to trade cryptocurrencies without the need for a central operator administrator.
This means that decisions relating to the SushiSwap software are made by holders of its native cryptocurrency, SUSHI. Anyone holding a balance of the asset can propose changes to how it operates, and can vote on submitted proposals by other users. SushiSwap’s core function is to mirror a traditional exchange by facilitating the buying and selling of different crypto assets between users. Rather than being supported by one central entity, tokens traded on SushiSwap are maintained by smart contracts, and users lock crypto on the software that can then be accessed by traders. Of note, those who trade against locked assets pay a fee that is then distributed to all liquidity providers proportionally, based on their contribution to the pool. Bottom line this coin has lots of potential.
Coin 3 – Stellar XLM
Stellar lumen is an influential cryptocurrency that was created to provide financial services to those underserved by the traditional banking system. By utilising its cutting-edge blockchain technology, this innovative digital currency has been able to break down the boundaries that traditionally limit access to essential financial services.
Thanks to stellar lumens, millions of people around the globe now have more significant opportunities for pursuing their dreams and ambitions. Whether you need money for your business or want to send funds back home, stellar lumens has you covered. With rapid transaction speeds and ultra-low fees, it is quickly becoming the preferred payment method for those looking to bank the unbanked and enable economic growth worldwide.
4. XRP
Hype matters when it comes to a cryptocurrency’s growth potential. We have included XRP in the list of top cryptocurrencies to explode in next year. There is so much expectation that if the case between SEC and ripple ends in ripple’s favour, FOMO could take this cryptocurrency to a new all-time high.
Besides the potential hype around the SEC case, there is a lot of expectation around integrating XRP into ripplenet products that target the banking industry. At its core, XRP is designed to facilitate fast and low-cost currency exchange. Ripple has created an innovative payment system that gives users access to an extensive network of global currency exchange partners. Moreover, thanks to its decentralised structure and peer-to-peer transactions via distributed ledger technology, transactions on ripplenet can process very quickly with low processing fees relative to traditional banking systems.
And although many skeptics doubt whether or not such a novel approach will prove successful over the long term, there are plenty of reasons for investors to be optimistic about XRP’s chances of success. One of them is that banks, especially in Asia, are already adopting ripple’s technologies, including those that use XRP for cross-border payments.
5. Shiba INU
Last up we have Shiba Inu. When it was first launched a couple of years ago, Shiba inu was an unknown cryptocurrency. Despite its name – taken from a popular Japanese breed of dog – few people had ever heard of it, and most people assumed that it would quickly fade into obscurity. But against all odds, Shiba Inu rose to become one of the most powerful and successful cryptocurrencies ever created. Over two years, it soared in value by an astonishing 48 million percent, making millionaires out of ordinary investors and cementing its status as one of the most remarkable success stories in history.
Although many experts have tried to explain this incredible growth and the sudden rise to fame of Shiba inu, no clear consensus has been reached. Some believe that the blockchain technology behind Shiba inu performed better than its competitors, offering greater security and faster transaction times. Others suggest that it was the hype around meme coins at the time. But ultimately, nobody can say why this cryptocurrency became such a massive success.
All we know is that Shiba inu made waves during its short but spectacular run – and its legacy will live on long after its inevitable demise. The best part is that Shiba inu will likely get bigger over time. That’s because, besides the meme coin hype, Shiba inu now has a layer-2 solution that is making payments cheaper and faster. At the same time, it now has a Metaverse, one of the fastest-growing markets this coming year. All these improvements and its current price give SHIB the potential to explode.
Benefits to Buying 5 Different Coins
If you were looking for how to invest 5k in crypto diversifying is just a smart move. More people are entering the crypto marketplace because of the potential to make millions of money from valuable coins but without the right knowledge and education, a lot of things could go south. Investing in any coin carries its own risk, yet you are about to find out how buying three different coins actually benefits you.
- Lesser risk: A diverse portfolio mitigates the inherent risks that come with owning a single coin. For instance, a cryptocurrency portfolio well diversified can withstand a greater degree of market volatility in any of the coins.
- Better position long-term: Because of the lesser risk involved, investors can hold a position on a coin for a long time if they have bought about three different coins. This plays an important role in reaching long-term financial goals since they won’t be simply bullied out of the market.
- Higher returns: With the right strategy, investing in three coins could lead to more profits, particularly in a bull run. Coins come with varying values and potential, and with educated speculation, you can make quick profits and even passive income from the various pumps.
As the ageless quote says, “do not put all your eggs in one basket”
Top 3 Best Crypto Exchanges
1. Binance US
Binance US is a cryptocurrency exchange for U.S. residents that allows users to buy, sell, and trade supported cryptocurrency. Binance US also offers “staking,” or lending of several cryptocurrencies, paying users interest for lending their crypto assets. They have a wide list of cryptos available and super low trading fees. You can get started on Binance US here.
Pros
- Great looking interface on desktop & mobile
- Beginner friendly
- Low trading fees
Cons
- Fewer crypto-to-crypto currency pairs than global Binance site
2. Uphold
Uphold is considered to be one of the safest ways to buy cryptocurrency by many digital asset experts. Since launching in 2014, Uphold has maintained an exemplary reputation for security among its customers. The site is unique in the sheer amount of assets it offers. You can get started on Uphold here.
Pros
- Available in more than 180 different countries
- Transactions sent between Uphold users are completely free
- Huge list of cryptos available
Cons
- Fees are unclear in certain buy and sell spreads
3. Crypto.com
If you’re looking for an affordable, all-in-one cryptocurrency platform, Crypto.com might be right for you. The more Cronos (CRO) you’re able to stake, the more benefits you’ll get from this exchange. They also have a huge list of cryptos available. You can get started on Crypto.com here.
Pros
- Wide list of crypto available
- Low trading fees
- Staking available
Cons
- Lack of educational resources
Final Thoughts
Investing in crypto does not come without its risks. However, diversifying is a smart move especially when volatility hits. Just remember to be in it for the long term and then you will reap the rewards.
