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Paul Krugman Is Dead Wrong About Crypto – Here’s What to Do About It
https://moneymorning.com/?p=1204271
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What is the Best Cryptocurrency to Invest In?

Investing in cryptocurrency is similar in many ways to trading stocks online or through apps. If you’re ready to dive in, read this article and our top crypto predictions listed below, to help set you on the right path today.

Investing in cryptocurrency has become increasingly common among both individual and institutional investors. This is largely due to two main factors: investors who play the crypto market correctly can see enormous returns on investment; and it has become much easier to purchase cryptocurrency in recent years.

For almost the entire first decade after the launch of Bitcoin in 2009, it took more than a bit of tech-savvy to purchase, store, and use all types of cryptocurrency. However, now anyone with internet access can easily invest in many of the top cryptocurrencies using common investing apps (more on that later).

Cryptocurrency investment has proven to be very lucrative for some investors, and many believe there are still plenty of fortunes to be made. For instance, Bitcoin was practically worthless when people started trading it (about $0.0008 per coin). It took the coin a few years to even reach $0.08!

Yet, at times Bitcoin has since soared well above the $40,000 mark, allowing early or timely investors to see massive ROI. It certainly isn’t too late to jump on the Bitcoin bandwagon, with at least one Bitcoin price prediction for 2025 as high as $1 million.

Of course, there are numerous other cryptocurrency options available—many even for the price of Bitcoin back in 2009. Before you jump into the world of cryptocurrency investment, there are few things you should know.

Is Investing in Cryptocurrency Right for Me?

Many investors wonder if choosing cryptocurrency is right for them, and we argue that just about any investor can benefit from adding cryptocurrency to their portfolios. While cryptocurrencies are often more volatile and riskier than stocks, owning just a small amount can expose you to high upside potential. Allocating just 3% of your portfolio to Bitcoin can offer huge growth potential.

And if you have money set aside for speculating on markets, trading cryptocurrencies can be a lucrative avenue as well.

The “Big Money” Boosting Bitcoin

When Wall Street firms and funds (together known as institutional investors) and public companies buy up Bitcoin, they buy it up big, in purchases worth millions or billions of dollars. Their cash influx won’t prevent the price from falling again, but it will keep the price from falling too low. It’ll also encourage others to invest and push Bitcoin to new highs. Here are some of the recent notable “big money” Bitcoin investments that helped push the price over $50,000:

Company/FundNo. of BitcoinApproximate Value on March 1
Grayscale Investments (OTCMKTS: GBTC)656,166$31.2 billion
MicroStrategy Inc. (NASDAQ: MSTR)90,859$4.5 billion
CoinShares Group69,730$3.49 billion
Tesla Inc. (NASDAQ: TSLA)Est. 40,500 – 52,000$2-$2.6 billion
Ruffer Investment Company45,000$2.3 billion
3iQ Bitcoin Fund22,590$1.13 billion
Galaxy Digital Holdings (OTCMKTS: BRPHF)16,402$820 million

Source: Decrypt.co; Yahoo Finance

How to Choose the Best Cryptocurrency to Invest In

When choosing the best cryptocurrency to buy, consider that a coin's value is ultimately decided by five main factors:

  • Investor confidence - Do other investors and analysts believe in the coin as much as you do? Does the coin have prominent backers known for their ability to pick winners?
  • Competition - How does the coin compare to other cryptocurrencies? Just being labeled a "cryptocurrency" or "altcoin" isn't enough. It needs to offer something better, such as increased security, faster transactions, anonymity, ease of use, or low transaction fees. Or it needs to offer an altogether new feature.
  • Developers - What are the credentials of the team building the coin? How often is the project upgraded? What does the coin's roadmap look like?
  • Value in financial markets - Financial institutions are increasingly showing interest in cryptocurrency. Many have already started integrating crypto into their businesses. Learn which coins these banks and financial companies are working with, and which ones they're looking to adopt in the future.
  • Public interest - Is the coin something the public at large will find useful? Retail adoption adds value through the network effect. The more people using a coin, the more valuable it becomes. Be wary of fads, though. A coin needs to be more than hype and gimmicks (though a sharp crypto trader can make quick profits on "pumps" of trendy-for-the-moment coins).

How Do I Get Started Investing in Cryptocurrency?

Although cryptocurrency is a relatively new investment, getting started is a lot simpler than most people might think.

Choose an Exchange

The first thing you should do is sign up for a cryptocurrency exchange. These exchanges will allow you to buy, sell, and hold cryptocurrency. Some common cryptocurrency exchanges include Coinbase, Kraken, Gemini, Binance, and more. When choosing a cryptocurrency exchange, compare the features of each. For example, you may want to choose an exchange that lets you withdraw your crypto to your own personal wallet for safer keeping.

Set Up Your Bank Account

Next, you’ll connect your cryptocurrency exchange to your bank account. To do this, you will need to provide personal documents such as your driver’s license, social security number, and bank account information. This will be how you transfer funds from your cryptocurrency wallet to your bank account.

Place an Order

Now, you’re ready to place a cryptocurrency order. Cryptocurrency exchanges offer many of the same features as traditional stock brokerage options. You can pay, sell, and trade cryptocurrency investments quickly and easily.

How to Play Bitcoin with Stocks

You don’t have to buy Bitcoin to profit from its gain. You can also buy stocks that are correlated to Bitcoin or companies that are investing in BTC, like these five we have our eyes on now:

STOCKPRICE ON 8/5/21YTD GAIN on 8/5/21
Riot Blockchain Inc. (NASDAQ: RIOT)$33.57104%
Grayscale Bitcoin Trust (OTCMKTS: GBTC)$33.74-3%
Overstock.com Inc. (NASDAQ: OSTK)$68.2838%
MicroStrategy Inc. (NASDAQ: MSTR)$717.6668%
Snap Inc. (NYSE: SNAP)$77.1155%
Silvergate Capital Corp (NYSE: SI)$114.9671%
Coinbase Global Inc. (NASDAQ: COIN)$260.74-20%

Other Ways to Buy Bitcoin

In addition to using an exchange, you can also buy Bitcoin using apps like Robinhood, Cash App, and even PayPal. You can also buy Bitcoin at a Bitcoin ATM, although the fees can be high (as high as 10%).

Lastly, you can buy Bitcoin through a P2P (peer-to-peer) network. These networks consist of individuals selling Bitcoin themselves. Bitcoin.com has its own P2P trading platform

Want to learn more about getting started with Bitcoin? Check out our guide  How to Buy Bitcoin. Luckily, you don’t have to understand all the technical ins and outs of cryptocurrency. All you need to know is how to buy, sell, and trade this potentially valuable investment.

The Best Cryptocurrencies to Watch in 2021

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How to Buy Bitcoin: The Money Morning Guide

Crypto Terms Explained: From Pseudonymous to REKT

How to Find the Best Cryptocurrency to Invest in Now

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Article Index

  • Paul Krugman Is Dead Wrong About Crypto – Here’s What to Do About It
  • The Best Cryptocurrencies to Buy Right Now
  • 2 Stocks to Invest in Web3
  • We Take On the Top Ten Biggest Bitcoin Myths… and Crush Them
  • 2 Cryptos to Buy This Week
  • What Web3 Means for Your Investments
  • The Best Five Cryptos to Own in a Volatile Market
  • Everything You Need to Know About Protecting Your Crypto
  • 3 Best Cryptos to Buy Right Now
  • The 3 Best Cryptos to Buy for the Metaverse
  • Crypto Q&A: More of Your Toughest Coin Questions Answered
  • How to Stake Cardano for 4.7% “Yield” on Your Crypto
  • The Six Best Cryptocurrencies to Own Right Now
  • Don't Buy Radioshack De-Fi - Here's a Better Metaverse Stock
  • Watch List: Four Crypto Mining Stocks to Look for in 2022
  • "Crypto Winter"? Bitcoin Bounces Back After Crashing Below $33K
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Paul Krugman Is Dead Wrong About Crypto – Here’s What to Do About It

By Nick Black, Alternative Asset Specialist, Money Morning - June 1, 2022

Nick Black explains why pundits like Paul Krugman are wrong about their crypto bearishness, and how investors should respond.

So let’s unpack what Paul Krugman’s saying here, and take a look at how it actually points the way toward crypto profits for investors who take the long view and keep the big picture in mind…

The Best Cryptocurrencies to Buy Right Now

By Nick Black, Alternative Asset Specialist, Money Morning - April 6, 2022

Nick Black is revealing the best cryptocurrencies to buy right now..

Read more...

2 Stocks to Invest in Web3

By Money Morning Staff Reports, Money Morning - March 16, 2022

Buzzwords like NFTs, DeFi, and the metaverse are everywhere nowadays.And another one has recently entered into conversations: web3.

Read more...

We Take On the Top Ten Biggest Bitcoin Myths… and Crush Them

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - March 13, 2022

David Zeiler debunks the top ten myths and misconceptions about Bitcoin.

So we’re going to cut through all the BS and debunk the ten most common myths and misconceptions about Bitcoin, for anyone who might still be on the fence.

2 Cryptos to Buy This Week

By Money Morning Staff Reports, Money Morning - March 10, 2022

When it comes to cryptocurrency investing, you can’t go wrong with infrastructure.These are some of the best investments you can make in crypto right now, hands down.And right now, there are 2 cryptos to buy this week that stand out above all the others.

Read more...

What Web3 Means for Your Investments

By Money Morning Staff Reports, Money Morning - March 4, 2022

Web3 — or web 3.0 — has moved into the spotlight in recent years.It’s become a buzzword in many conversations about the future of tech.Chances are you’ve heard of it at some point since it was first coined back in 2014 by Gavin Wood, the co-founder of Ethereum.

Read more...

The Best Five Cryptos to Own in a Volatile Market

By Nick Black, Alternative Asset Specialist, Money Morning - February 24, 2022

Nick Black picks out the five best crypto plays to make in response to market volatility.

Let me show you four more of my favorite deals in crypto today so you can add them to your moneymaking watch list…

Everything You Need to Know About Protecting Your Crypto

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - February 20, 2022

David Zeiler puts together a comprehensive guide to protecting your crypto investments.

In it, you’ll find out the most common ways you can lose your crypto, the biggest security mistakes you need to avoid, and exactly what steps you can take to protect your investments…

3 Best Cryptos to Buy Right Now

By Coty Poynter, Associate Editor, Money Morning - February 9, 2022

It doesn’t matter whether you’re new to cryptocurrencies or not, the number of potential investments can be overwhelming.While Bitcoin (BTC) is often the first to come to mind, it is more akin to gold.It’s stable; it’s a gauge of overall value.

Read more...

The 3 Best Cryptos to Buy for the Metaverse

By Coty Poynter, Associate Editor, Money Morning - February 8, 2022

Right now, the metaverse is rapidly changing the way we think about traditional businesses and products— and cryptocurrency is at the heart of it. So, today we’re going to take a look at the 3 best cryptos to buy for the metaverse.

Read more...

Crypto Q&A: More of Your Toughest Coin Questions Answered

By Nick Black, Alternative Asset Specialist, Money Morning - February 5, 2022

Nick Black answers his viewers' toughest crypto questions.

Those are just a few of them. I’ve got the answers to all those crypto questions and more, right here…

How to Stake Cardano for 4.7% “Yield” on Your Crypto

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - February 3, 2022

David Zeiler shows us how to stake Cardano for even better gains.

Here’s exactly what you need to do to get started…

The Six Best Cryptocurrencies to Own Right Now

By Nick Black, Alternative Asset Specialist, Money Morning - January 29, 2022

Nick Black shows us the six best cryptocurrencies to own right now.

I’ll share my six favorite protocol layer picks in just six minutes – plus a bonus pick you can evaluate for yourself – right here…

Don't Buy Radioshack De-Fi - Here's a Better Metaverse Stock

By Mike Stenger, Associate Editor, Money Morning - January 28, 2022

You can't invest in Radioshack DeFi yet - but there's a metaverse stock you can buy now that could bump Radioshack out of the market later on...

Read more...

Watch List: Four Crypto Mining Stocks to Look for in 2022

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - January 26, 2022

Dave Zeiler has four crypto mining stocks to watch out for in 2022..

Read more...

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