The rising popularity of cryptocurrencies over the past years have sped up their creation and growth. New traders and investors may easily be confused by the sheer number of currencies available. This guide aims to help you invest in some of the best digital currencies available.
You’ve probably heard of Bitcoin before hearing the terms cryptocurrency or blockchain. Bitcoin is the largest and most popular cryptocurrency, both by market capitalization and by transaction volume. Most industry analysts agree that if you are only going to invest in one cryptocurrency, then Bitcoin should be the one you choose.
As with any digital currencies, Bitcoin has been a successful investment for some and a loss to others. It is always important to learn how to invest in Bitcoin before you start using real money.
Advocates for Ethereum describe the coin as being the brains behind the entire blockchain technology. Bitcoin is the flashy member of the family, whilst Ethereum is the more stable, responsible currency. In fact, many blockchain companies are investing in this currency.
As the third largest cryptocurrency with a market cap of over $12B, XRP is a favourite amongst many crypto traders. Preferred by banks and financial institutions looking to invest in cryptocurrencies and blockchain technologies, XRP, or Ripple, is an important bridge between tradition and innovation.
Ripple is a significant cryptocurrency and, as such, is available to trade in the majority of exchanges. You will also need a place to store the currency safely when not using it. Fortunately, wallets such as Ledger Nano X and CoolWallet S accept XRP.
Litecoin is a preferred coin for long term investment. With a market cap reaching beyond $3B LTC is expected to become the world’s favourite shared payment facilitator. The digital coin has a preferred proof-of-work algorithm which is more decentralized than Bitcoin’s, allowing miners to earn it quicker.
KeepKey and Trezor are just some of the hardware wallets which accept Litecoin. You can also choose to store the currency in web or mobile wallets if you prefer. The currency is also traded across major exchanges, so you can easily buy and sell Litecoin.
5. Binance Coin
As its name suggests, Binance Coin is the cryptocurrency released by the world’s largest exchange platform, Binance. Binance Coin allows investors to gain from increased trading volumes, but also from transaction fees. The coin is seen as a promising eventual competitor to Bitcoin itself since it is backed by what is considered to be the best cryptocurrency enterprise today.