Cryptocurrencies in India are currently booming and retail investors are adding to the fire with their enthusiasm. However, with a healthy correction in prices of major cryptocurrencies over the last few weeks, investors should evaluate the top currencies before making a fresh investment.
According to Ashish Singhal, CEO and co-founder of CoinSwitch Kuber, the top traded currencies right now are bitcoin, Tron (TRX), Ethereum (ETH) and Ripple’s XRP.
However, he still asked one to do thorough research before investing in any cryptocurrency.
“Factors like a coin’s technological purpose and fundamentals, what projects are happening around it, should be taken into account,” he said.
Meanwhile, in a statement, CoinDCX said Ethereum (ETH) is the most favoured cryptocurrency now.
“Other options like Ripple (XRP) and Litecoin (LTC) are, however, also increasingly gaining traction based on their technological advantages,” he added.
Despite the lure of certain popular and lower denomination cryptocurrencies, CoinDCX opined that it would be wise to consider only those with a solid ecosystem.
“Investors must exercise caution and invest at important support levels while maintaining an appropriate stop-loss for all trades. Lastly, all investments should be made considering the focus on fundamentals and long-term potential of this asset class,” it said.
In an interaction with CBC-TV18, Sathvik Vishwanath, CEO and co-founder of Unocoin suggested that the ones who believe that the bull market will continue should look at the exchange and its service-based cryptos as they would continue to do better business during uptrends.
“For the ones who believe that correction is due soon or that the industry has reached temporarily a stable state, they should be looking at scaling and protocol tokens as these form the fundamentals for the growth of the industry in the long run,” he advised.
He further warned against investing by taking loans or investing anything more than what a person is ready to lose.
“While crypto has given unparalleled returns in the last 6 months, it in no way means success in the future. The industry continues to be in the experimental stage both in terms of technology and in terms of regulations,” he stressed.
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