! Advertiser Disclosure

Anonfork.io is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

Which cryptocurrency to invest in?

Cryptocurrencies are now considered a central part of commerce. The digital coins are in constant circulation, being bought and sold, rising immeasurably in value and suddenly falling radically – just like regular, analogue currencies and shares do. But what are these digital currencies all about, how did they come into being – and is it worth investing in them with an eye to the future? ROInvesting explains here everything you need to know about Bitcoin, Ethereum, and Co.

Is cryptocurrency a good investment?

Cryptocurrencies are virtual money, not in notes or tangible coins, but stored digitally. They are created in a chain of code called a blockchain. This chain is permanently in progress: it is changed, passed on, or encrypted under secure conditions, which is called mining. Cryptocurrencies can be used like regular currencies.

The owner can buy, sell and transfer with them and also trade on the market and invest with them. The key difference with analogue money is that cryptocurrencies are held in a decentralised way and instead of having a wallet in your pocket, you have a wallet online to store your money.

Investing in cryptocurrencies with the right strategy

In principle, the value of cryptocurrencies contains fluctuations just like any other currency. However, these are much more noticeable than those that can be observed with the dollar or the euro. This is best illustrated by the example of Bitcoin: The digital coin had a clear peak at the end of 2017. A single coin was worth almost 20,000 euros. So anyone who bought Bitcoins at a low price and cashed them out at the zenith made a profit.

Investing in cryptocurrencies, therefore, involves clear risks: You can win a lot, but it is just as possible to lose a lot of money quickly – just like on the stock market.

Richard Bradley
Verified writer

Fact checked

Updated Sep 13, 2021.
What changed?
What changed What changed?

Interesting cryptocurrencies for 2021

2020 was a challenging year for the global economy and the traditional financial system. More institutional investors are turning to cryptocurrencies as a possible alternative to traditional financial investments or as a hedge against major economic threats.

Thus, 2021 seems to be an ideal year for further adoption of cryptocurrencies and radical changes in the existing financial system. Would you like to invest in crypto?

1
ripple

Ripple is an alternative financial payment system designed to simplify and transform cross-border payments so they are 100% secure, virtually free, and instantaneous.

In the early days of Ripple in 2013, the platform caught the attention of many financial institutions. Over the years, over 100 financial institutions have accepted Ripple. In 2020, Ripple’s blockchain expanded to over 280 providers in over 30 countries.

2
IOTA

IOTA is a cryptocurrency for the Internet of Things and an open-source distributed ledger. It incorporates an acyclic directed graph to store transactions in its ledger, which is justified by the potential for greater scalability compared to blockchain-based distributed ledgers.

3
litecoin

Litecoin – one of the altcoins – is referred to as the silver of cryptocurrency and is an established platform with a large following. The Litecoin price was at USD 68 at the end of 2020. An interesting option to consider is the excellent results it has shown this year. In October 2020, this coin was one of the largest cryptocurrencies. Already in November of the same year, it improved its position and became the eighth largest.

Among Litecoin’s advantages is that it has a much higher block reward compared to other competitors and is incredibly fast. The average block mining time is only 2 minutes.

4
Monero

Monero is a secure, private, and untraceable currency. This open-source cryptocurrency was launched in April 2014 and soon attracted a lot of interest from the crypto community and enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven. Monero was launched with a strong focus on decentralisation and scalability, and allows complete privacy through a special technique called “ring signatures”.

5
Cardano

Cardano is an open-source cryptocurrency network and project that aims to run an open-source blockchain platform for smart contracts. Cardano’s internal cryptocurrency is called Ada. The project’s development is overseen and controlled by the Cardano Foundation in Switzerland.

6
Bitcoin

New cryptocurrencies come and go, but Bitcoin is always trending. By the end of 2020, Bitcoin reached a new all-time high of $19,857 and increased its year-to-date gain to 177%.

Analysts unanimously share their views on Bitcoin’s future in 2021 and beyond, forecasting incredible price targets of $120,000, $170,000, and even $320,000 for BTC

7
Ethereum

Ethereum is the second most popular cryptocurrency after Bitcoin, with an incredibly high market capitalisation. Its price has risen sharply in recent months and was worth USD 579 at the end of 2020. The success of the Ethereum 2.0 update along with the decentralised financial system can be one of the main reasons for this growth.

Advantages of ETH: It is the second most liquid cryptocurrency in the world, supports smart contracts, and enables the creation of decentralised mobile applications, dApps.

Meet Our Reviewing Team

Richard Bradley
Verified writer

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Where should I start if I want to invest in cryptocurrencies?

To invest in cryptocurrencies, we recommend you consider:

1) Look around the cryptocurrency market and research the topic.

2) Choose a cryptocurrency that seems solid to you.

3) Consider the pros and cons, risks, and benefits of your investment.

4) Invest in CFDs in cryptocurrencies only through reputable and reliable forex companies.

Take the opportunity and open buy and sell positions in the most popular CFD cryptos with the regulated online broker ROInvesting!

Best Crypto Exchange Brokers 2021

Broker Rating Cryptocurrencies Special features A list of features that provide a given broker with a competitive edge. Regulated by A list of features that provide a given broker with a competitive edge. Warning & Ad Disclosure A list of features that provide a given broker with a competitive edge.
Rating
8.5 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
No deposit fees for all payment methodsCheap method to buy Bitcoin instantly.One of the few providers that offer PayPalVery user-friendly trading for beginners
Regulated by A list of features that provide a given broker with a competitive edge.
EUUSAUKAUS
Rating
8.9 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
the largest range of functions of all brokers (savings plan, crypto index)very clear, easy to understand, modern designthe provider (support, payment methods)many coins, also metals, shares, and ETFs
Regulated by A list of features that provide a given broker with a competitive edge.
AT
Rating
7.2 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
many cryptocurrencies, also smaller coinsDirect payment to own wallet possibleUp to 500 euros without verification with IDIntuitive operation
Regulated by A list of features that provide a given broker with a competitive edge.
NL

Advantages of trading crypto CFDs via ROInvesting

Be part of the financial markets and become a cryptocurrency CFD trader through this broker.

• Crypto portfolio: it offers over 30 cryptocurrency pairs for you to achieve and diversify your portfolio.
• Take a position in the market: one advantage of CFDs is that you can invest in cryptocurrencies by speculating on their prices bullishly (buy) or bearishly (sell), depending on your estimates, previous analysis, and market sentiment. CFDs also allow you to open and close positions within minutes or whole days.
• Financial leverage: Leverage allows you to enter with less capital compared to the value of the underlying asset as it widens your margins within the trading platform. In ROInvesting, leverage varies depending on the financial asset to choose and could cause high profits than losses.
• Minimal Spreads: Our spread fees for open trades are relatively low, down to 0.03. Operations with cryptocurrencies have a variable margin.
• No digital wallet required: Trading cryptocurrency CFDs does not require a digital wallet or registration with an exchange. Traders need not worry about how to store and keep digital currency safe.
• Free account: You can create a free account on this broker’s portal by clicking on the “Open Account” option that appears on the ROInvesting website. Fill in the required information.
• Low-security risk: Contracts for difference are generally safer than actually buying cryptocurrency units on an exchange. Conduct your trading activities through a reputable and registered broker to better protect your capital from losses or fraudulent activities such as hack attacks.

The allied platform of this broker is Metatrader 4, it offers over 30 tools to study and draw conclusions from the historical prices of the charts. In Metatrader you will find the most famous ones like Trend indicators, Bollinger bands, and Fibonacci tools.

What are cryptocurrency CFDs?

Info

CFDs, or Contracts for Difference, are an attractive way to trade any asset class as it does not require the actual purchase of the asset in question. This allows one to speculate on the future value of the underlying asset without actually owning it. With a cryptocurrency CFD, traders can try to predict the future change in the value of a particular cryptocurrency. You can either open contracts on the performance of a cryptocurrency relative to fiat currencies, such as the euro and sterling, or another cryptocurrency, for example, Litecoin relative to Bitcoin.
One of the most important concepts you need to understand before trading cryptocurrency CFDs is leverage, which is both a major advantage and disadvantage of this type of derivative. With CFDs, leverage allows you to open positions with small amounts and have greater market exposure. This increases your potential gains or losses. This allows you to trade larger positions with smaller amounts.
Leveraged CFDs for cryptocurrency trading is another way to invest in cryptocurrencies – think about it!
On the one hand, margin trading allows you to increase your returns and offers the potential for a much larger return on a relatively minimal initial amount. On the other hand, it also means that losses increase as they are calculated based on the full value of the position. Thus, you can lose much more than your initial deposit. This is a major risk you need to know before getting into crypto CFDs.

Are cryptocurrencies suitable for long-term investment? Pros and Cons

According to the forecast for 2021, the following advantages and disadvantages of a long-term investment in cryptocurrencies can be distinguished:

Things we didn’t like:
Volatility can always devalue long-term investments
Since cryptocurrencies are digital assets, there is always a risk of hacked wallets and portfolio trackers
Access to the e-wallet where money is stored can be lost
There is a risk of losing invested capital
Richard Bradley
Verified writer
quote

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Top 3 Crypto Exchange Brokers 2021

The newly launched eToro Wallet is a new addition to this popular social trading platform.

The wallet can be used by any existing and verified member of eToro as it is synchronised with the site’s accounts.

With this wallet app, users can buy or sell assets, transfer assets between wallets, or exchange one crypto for another.

They can also use the wallet as an easy place to keep their digital coins safe. The biggest advantage of the eToro Wallet is its ease of use and security. You need not worry about security as the wallet is managed by the eToro servers. eToro is known for its industry-leading security standards.

43 crypto pairs
Pros:

• Easy to set up
• Supports the German language, just like the eToro platform.
• High level of security
• Direct buying and selling of cryptocurrencies in the wallet.
• It is synced with the user’s existing eToro account for easy access.
• 120+ supported coins

Cons:

• Custodial Wallet – you do not own your private keys

Bitpanda from Austria is an innovative provider for the direct purchase of cryptocurrencies.

Bitpanda is a provider with a so-called “hosted wallet”.

At Bitpanda, there is a separate online wallet for each currency.

43 crypto pairs
Pros:

• the largest range of functions of all brokers (savings plan, crypto index)
• very clear, easy to understand, modern design
• the provider (support, payment methods)
• many coins, also metals, shares, and ETFs

Cons:

• source of funds necessary for sales over 10,000 euros

A relatively new broker from NL. At Coinmerce there are also many smaller cryptocurrencies available for direct purchase

Coinmerce is a broker, which means you don’t buy cryptocurrencies like on an exchange, but directly from the provider.

When buying cryptocurrencies on Coinmerce, you can choose whether you want to use the provider as a “hosted wallet” or whether you want to pay out cryptocurrencies directly to your wallet.

43 crypto pairs
Pros:

• many cryptocurrencies, also smaller coins
• Direct payment to own wallet possible
• Up to 500 euros without verification with ID
• Intuitive operation

Cons:

• Still relatively small, new provider
• Cryptocurrencies supported by Coinmerce

How to invest in cryptocurrencies?

Before you invest in cryptocurrencies, learn how to do it smartly. Let’s say you have an amount of money you don’t want to waste, so you want to know how to buy and sell cryptocurrencies.
You acquire cryptocurrencies by contacting a broker or going to specialised exchange offices. This means that cryptocurrencies are bought and sold much like analogue money. In addition, we recommend that you trade according to the list presented below.
This will help you to make your investment with no problems:

• Some exchanges do not operate globally. Therefore, check whether the institution you have chosen is active in your country.
• Reputation. Extremely important. You cannot buy a good reputation. Discover whether the system you want to trust with your funds is sufficiently protected and whether clients are satisfied with the service.
• What about the exchange rate? You don’t have to pay too much. Only pay what is necessary.
• Check the security conditions. This is a very important point, please pay attention to it.
• When you are ready, trade with the cryptocurrency of your choice! Investing in digital coins has never been so easy

Recomended brokers 2021

According to their website support forum, this is “for security, regulatory compliance and fraud prevention”. The limits are based on several factors that include the payment method you used, how old your account is, your purchase history, and more. These limits are calculated automatically.

etoro ee
eToro
Register now
bitpanda blue
Bitpanda
Register now
coinmerce blue
Coinmerce
Register now

Here’s how you can invest in cryptocurrency CFDs with ROInvesting

Let’s now look at what it takes to invest in cryptocurrency CFDs, step by step.

1
Account creation

On the ROInvesting main page, click on “Open an account” and your registration form will open.

Fill out the form with the required information and check it for accuracy before clicking “Submit Form”.

2
Confirm identity

This is a mandatory step. Upload a photo of your citizen card (or equivalent ID issued by your government) and an invoice for recent service.

After successful verification, your account will be created and login details will be emailed to you.

3
Deposit to your account

ROInvesting offers several payment methods, including credit/debit cards, electronic wallets, and others. Choose the payment method that is most convenient for you.

4
Choosing your version on the MT4 platform

The MT4 platform is available for various iOS and Android mobile devices and PC. Choose the one that suits you best.

5
Register and open a trading position

After the previous steps, click continue, enter your account number and password for the platform.

6
CFD Trading Example: Selling Litecoin

You believe that the price of Litecoin will fall in value and go short by selling Litecoin against the US dollar (LTC/USD).

The current market price is 200 and you sell 5 contracts (each equivalent to 1 LTC) to open a position at this price.

If your prediction is correct:

If you were correct and the value of Litecoin fell against the US dollar, your trade would profit. Let’s say the new market price is 150, you could close your position and take your profit by buying 5 contacts and closing your position at the buy price of 155, which is slightly higher than the market price due to the spread.

Since the market has moved 45 points in your favour, the profit on your trade would be calculated as follows: 5 x 45 = $225.

If your prediction is wrong:

However, if the value of Ether rises against the US dollar, your position would be closed at a loss. Let’s say you decide to exit after the market has risen 15 points to 215 – so you buy back 5 contracts at the buy price of 217. This would mean that the loss on your position is 5 x 17 = $85.

Conclusion

Even if you only inform yourself minimally about cryptocurrencies, you will notice there are now hundreds of platforms that specialise in digital money. The pioneer’s Bitcoin, Ethereum, Ripple, and Co. have some competitors, which get more users and whose value also changes daily. It is, therefore, to be expected that trading with cryptocurrencies will gradually develop upwards and that more people will invest in digital coins. Our service at ROInvesting provides you with regular updates on the development of various cryptocurrencies, and we are happy to help you invest wisely in the right coin and trade with an eye on the future.

 

When you choose ROInvesting to invest in CFDs cryptocurrencies, you will benefit from our range of useful information to help you with your trading:

  • use leverage to increase market exposure (potential gains/losses);
  • not incur any costs for deposits made; and
  • work with a regulated intermediary;
  • start negotiations between platforms;
  • rely on technical support from Monday to Sunday from 06:00 – 17:00 GMT.

Want to learn more about this and other topics? Visit our website ROInvesting.com and invest in CFDs cryptocurrencies now.

Frequently asked questions

Should you invest in cryptocurrencies?

In principle, cryptocurrencies offer an attractive investment opportunity as you can quickly achieve high-profit margins. However, this should be treated with caution, as you can also make large losses just as quickly. Since the price of cryptocurrencies is determined by demand and supply, the value of the currencies can vary greatly in both directions. If the investor knows this, cryptocurrencies are suitable for trading contracts for difference. Therefore, cryptocurrencies make sense as a complementary investment to your portfolio.

Which cryptocurrencies to invest in?

Probably the biggest cryptocurrency is Bitcoin. Therefore, alternatives to Bitcoin are also called Alt-Coins. You are free to decide which cryptocurrency you want to invest in. Do a little research, spot trends, and find the right cryptocurrency.

What is the difference between online and offline wallets?

Why is it best to use an offline wallet as a long-term trader? To answer this question, let’s look closely at the security features of each wallet. Online wallets can provide flexible access rights via an internet connection and are free of charge. At the same time, the internet connection is easily hacked and not protected. This principle can be compared to the conventional W-LAN connection at home, as the principle is also protected by various protective mechanisms, for example, neighbours cannot penetrate the internet connection for free. Access to online wallets works similarly. For example, if it is not optimally protected (including passing the second level of security with 2-factor authentication), a hacker can manipulate the wallet unhindered and in the worst-case steal coins. Offline wallets are more secure.
The above information is for educational purposes only and should not be construed as investment advice. Past performance and forecasts are not reliable indicators of future results.

Richard Bradley
Verified writer

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Coinbase
(729 User Reviews)

Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk. CFD crypto trading is unavailable for clients residing in the UK and US. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.