Cryptocurrencies have been a great way to earn some extra profit on the side, and depending on the users’ approach, they can either earn a lot, or lose their entire investment. Crypto markets are volatile, and that means that the prices will go up and down by quite a bit, often completely without any warning. You can deal with this in two different ways.
The first one is a long-term investment, where you simply buy the coins, create a wallet, lock them up into that wallet, and forget about them for years to come. Those who did that with Bitcoin back in the early days are likely millionaires now. However, this approach requires patience, discipline to prevent yourself from selling when the first rally takes place, and a proper mindset. You need to constantly remind yourself that your investment was made for the future, and you need to believe that the coin(s) that you invested it does have a future.
Your other option is short-term investment, which is great for earning smaller income, but a lot sooner. Short-term investments can be anything, from a few days to a few weeks, and even a few months. They can allow you to earn more than regular trading, although typically a lot less than long-term investments. But, if you wish to see noticeable profits in the next couple of weeks or months, then this is the right approach for you. Keep in mind that you can just as easily experience losses here as you would with trading, as bearish periods tend to last for months after they struck. However, if you feel confident about the future, then short-term investments are a good deal.
With that said, here are some coins that we believe are good options for short-term investments.
1. Bitcoin
The first on out list is Bitcoin, which is a coin that does not need any introduction. Bitcoin started the crypto industry over 13 years ago now, and it has been leading it ever since. However, Bitcoin is also the most volatile of them all, and the rest of the crypto market usually follows its lead, when it comes to having the prices grow or drop.
Whenever Bitcoin price suddenly changes, it is usually by quite large amounts. It is not unheard of for the coin to surge or drop by thousands of dollars in a day, so if you happen to make the right prediction and invest into BTC when it hits the bottom, you can then see quite major profits when the coin surges again.
To learn more about this token visit our Investing in Bitcoin guide.
2. Ethereum
In the second spot, we have Ethereum. As the world’s first blockchain-based development platform and the father of pretty much every crypto trend from smart contracts to metaverse, Ethereum played a crucial role in the development of crypto and blockchain. This led it to being the second most important cryptocurrency in the world, and it rightfully occupies its place under Bitcoin.
Being a coin of such great importance, it is also one that soared high last year, and it will certainly do so again at some point. So, buying Ethereum for short-term investments might be a good thing, especially since its team is getting closer to implementing the upgrade that will finally allow the project to switch to Ethereum 2.0.
Once that happens, the current issues that the project is facing, such as the lack of scalability, low TPS count, high gas fees, and others, will either be eliminated or significantly reduced. As a result, we expect to see Ethereum’s price skyrocket when it happens.
Even if Ethereum doesn’t switch to ETH 2.0 soon, it still has quite significant price fluctuations, so choosing it as a crypto for short-term investing is still a pretty good choice.
To learn more about this token visit our Investing in Ethereum guide.
3. Binance Coin
In the third spot, we have Binance Coin. Now, this is a native cryptocurrency of the world’s largest exchange by volume, Binance, and it actually operates on both of its blockchain — the original Binance Chain, as well as the DeFi-oriented Binance Smart Chain (BSC). BNB has countless use cases within Binance’s ecosystem at this point, and it will likely continue to see new ones emerge as the blockchain sector continues its development.
Binance is known for being among the first companies to adopt every new trend that comes along, and so far, this has worked fairly well for it. The exchange did end up in a controversy last year due to offering tokenized stocks without having licenses to do it in multiple countries, but for the most part, the company managed to pull through the issues.
With its subsidiaries all over the globe and partnerships with major banks and firms, Binance is now aiming to establish a new office in Russia and expand into surrounding countries, thus being among the first to enter this untapped market. With that said, it will be the first major exchange to offer a full set of services to Russians and traders from surrounding nations, which is likely going to launch its coin to the moon.
To learn more about this token visit our Investing in Binance coin guide.
4. Dogecoin
Dogecoin is a fairly old cryptocurrency, one that was created about 9 years ago at this point. Launched in 2013, DOGE was a joke — a memecoin — meant to bring some fun into the overly-serious crypto industry. Its own creators expected it to last for a few months at the most before fading out of the industry and being forgotten forever.
However, DOGE quickly became the industry’s favorite coin, managing to remain in the top cryptos by market cap. Then, in 2021, it started seeing massive amounts of attention thanks to Elon Musk’s constant referencing on Twitter, as well as its community’s efforts. As a result, the coin exploded in early 2021, and became one of the year’s best performers.
Furthermore, its developers and the entire Dogecoin Foundation returned, announcing great upgrades and changes to the coin, but also promising that it will remain as decentralized and community-oriented as ever. With that said, DOGE certainly has potential to see changes in the near future which could reflect positively on its coin.
To learn more about this token visit our Investing in Dogecoin guide.
5. Polkadot
Next up, we have Polkadot. This is a project that saw the issues that many crypto projects struggle with due to the lack of scalability and expensive gas fees, and so it came up with a solution that involves a rather interesting approach. Polkadot created parachains — parallel chains that run alongside its main blockchain, and take over a portion of the work.
That way, the main blockchain doesn’t have to do all the work itself, which improves its performance. However, another ability that Polkadot got thanks to the parachains is the possibility to connect to other blockchains in the industry, thus creating a network of chains with its own ecosystem in its center.
With interoperability being one of the largest goals in the crypto sector, Polkadot could play a crucial role in establishing it. And, since its chain is extremely fast and cheap to use, many have already switched to Polkadot for developing and using various projects.
To learn more about this token visit our Investing in Polkadot guide.
6. Solana
Nearing the end of our list, we have Solana. This is a project that emerged with the intention of fixing the issues of the crypto industry, similarly to Polkadot. Of course, Solana doesn’t use parachains, but its own solution — a hybrid consensus model that is a combination of a standard PoS and Proof-of-History (PoH). But, it has proven to be so effective that it became one of the go-to blockchains for all those who are joining the crypto world, as well as those who have decided that Ethereum’s current high fees are too much for them.
As a highly-functional open-source project that can offer tech with permissionless nature to individuals, banks, and businesses alike, Solana has attracted other projects, as well, and is now exploding with DeFi, NFT, and metaverse-related projects, as well as dApps.
To learn more about this token visit our Investing in Solana guide.
7. Shiba Inu
Last, but not least, we have Shiba Inu. This is a project that is best described as a Dogecoin clone. SHIB is the second most popular memecoin, created after its devs were inspired by Dogecoin’s success and popularity. Like Dogecoin, Shiba Inu doesn’t have any specific use cases, other than being useful for payments, and being popular as a meme.
Even so, it managed to skyrocket last year, and at one point, it even became bigger than Dogecoin in terms of market cap and rank. DOGE still had a higher price, but only due to SHIB’s massive circulating supply. However, the burning of SHIB’s coins would reduce its supply and increase its tokens price, which remains an option. At the time of writing, SHIB is once again below DOGE, but it proved once that overcoming the original memecoin was possible, and so there is no reason for it not to try to do so again once the market conditions are right.
To learn more about this token visit our Investing in Shiba Inu guide.
Conclusion
With that, we conclude our list of the top short-term investments for this February. Of course, no one can predict with absolute certainty how the market might behave, which is why you need to make your own forecasts after properly informing yourself about each of these coins, as well as the crypto market as a whole.
But, if you find that the near future might carry gains for these coins, then short-term investments might be the best way for you to profit from them.
The post Top 7 Cryptos for Short-Term Investment in February 2022 appeared first on Securities.io.
