It is one thing to know what cryptocurrencies are, and it is a different ballgame to understand how to invest in them. Crypto currency is all the rage today, and everyone wants to know what is in it for them. Is it safe? What is the gain? Is it better than investing in the stock market? What are the methods for a safe investment?
There is a myriad of cryptocurrencies worldwide, and more are springing up as the days pass. But it is not every cryptocurrency that flies by that you should give your attention. As you may know, some rank higher on the scale of value and importance, and hence preference, than others. Therefore, you must know the coins that are worth your money.
According to CryptoMinati Capital, “it is vital to invest money you don’t mind losing”. There is no intermediary to check the regulation of cryptocurrency. No government or body tells you how to use your coins or tokens or where to trade with them. It is usually worth what the users and investors say it is worth and usable in any manner. As great as it may sound, that makes it pretty unreliable.
Top 5 Best Cryptocurrencies For First-Time Investors & Marketcap In 2022 [Loved By Redditors]
We picked these coins based on the overall value of the ones in circulation and their security against insider trading. Though you can trade in these cryptocurrencies through crypto.com
#1. Bitcoin (BTC): Decentralized Store of Value
When you hear cryptocurrency, the word that may come to your mind is bitcoin. It is arguably the most popular currency, but that is not just because it came to the scene before others. Bitcoin was created back in 2009, and since then, it has gained prominence. It has a market cap of more than $1.7 trillion. The currency is safe because it uses a blockchain that relies on cryptography. With cryptography, bitcoin transactions are irreversible, and data security is solid. In other words, it is difficult to break through the barrier. Another reason we chose bitcoin is the fact that it is public. While it does not exactly instill confidence, it should. The public status of bitcoin transactions means anybody can see it without knowing the people involved. That way, it is harder to cheat the system. Right now, bitcoin seems the most valuable cryptocurrency on the market. Many stores and companies that accept cryptocurrency as a valid form of the transaction are more willing to use bitcoin than others because of its value. One bitcoin goes as high as about $60,000. Investing in it is expensive, but it may be worth it in the long run.
Non-fungible tokens (NFTs) enjoy using ethereum because of the different ways you can potentially use it. The same is true with automatic smart contracts. Ethereum is not just a cryptocurrency, but it is also a blockchain. That is what makes it so attractive to program developers. Ethereum made our list because of the value placed on its technology. It is not just about how much you can get for it; it is also about what you can do with the Ether technology. Ethereum-developed apps are springing up, even from reliable financial institutions. As it stands, more are coming on the Ethereum platform. The cryptocurrency is more affordable than bitcoin, coming in a little over $4000. Plus, it has a market cap of $520 billion. But that does not mean it is any less valuable than bitcoin; its intrinsic value puts it ahead of the more valuable currency. Much like bitcoin, ethereum has the potential to triple in value with time and use. And the value is not just about its use as a means of exchange. There is a high chance of ethereum gaining ground on bitcoin due to its potential for applications. So, if you are wondering whether or not you should invest in ethereum, especially as a newbie, you are welcome.
Binance exchange is vast, one of the largest exchanges in the world, and it has developed its own coin. Back in 2017, when it first launched, the coin was only good for use within the Binance exchange. You could trade and pay different fees on the platform. But now, you can also use it for payment when you want to travel and other transactions. You can even trade or exchange it for other cryptocurrencies such as ethereum or bitcoin. In other words, if you have Binance coins, you can exchange them for the more valuable bitcoin or ethereum on specific platforms. But bear in mind that the value may mean having to exchange a large number of the coins for a smaller amount of the other cryptocurrencies. Initially, the coin relied on the ethereum network. But the exchange has since gotten its blockchain called the Binance chain. Considering that the exchange is one of the most trusted globally, the coin is reliable. Its wide usage makes it worth investing in, and there is room for improvement. Its market cap is about $88 billion, and one Binance coin initially sold at $0.10. But the value has since risen to about $530 per coin.
ADA is a relatively safe coin to invest in if you are looking at things in a general sense. The co-founder of ethereum founded the coin so that you may find some confidence in that. It is independent of other projects and rests on its blockchain. If you stake with ADA, you will likely earn a passive reward. ADA is not a new coin; it has been on the crypto market for some time, even though it did not start as early as others. On the list, it ranks pretty high, coming in close behind the more popular coins. ADA is known for embracing the proof-of-stake validation method quite early. The method quickens the transaction time, thereby reducing the usage of energy. It does this by eliminating the problem-solving and competitive aspect of verifying transactions that you will find other popular platforms. Its value is also high with a promise of more because of its applications that are decentralized and capacity to enable smart contracts. However, its growth has not been as phenomenal as you would expect, coming in at $2.01, with a market cap of $66 billion. Nonetheless, it does not detract from its value and potentials in the nearest future.
With a market cap of more than $60 billion, Solana, or SOL, has gained popularity this year alone. At the start of the year, one SOL went for about a dollar and a half. Now, it sells for a little over $200. Currently, it is the sixth-largest cryptocurrency going by market capitalization. You can chalk it up to huge investors staking their SOL for long periods in order to earn some interest. That has boosted the available coins and increased the value. Another factor that affects its intrinsic value is its similarity to ethereum. It is the second-biggest cryptocurrency after bitcoin and is the first one to bring smart contracts to the scene. However, there is always heavy traffic on the ethereum network since everyone wants a piece of what’s on offer. As a result, transacting on the network has become quite pricey. Therefore, users are looking for an alternative, and SOL offers them that. SOL is about the fastest on the market, transacting about 50,000 transactions in a second. And it has more than 350 applications currently running on the network. It also uses a proof-of-history transaction validation method, which is part of the reason it is the fastest cryptocurrency.
As volatile and unreliable as cryptocurrency is, there are ways to invest in it safely. People are making huge profits from trading in coins and tokens, so it is possible to join the profit-making wagon. Try not to get carried away with all the stories of success. There are also losses that could have been avoided if there had been proper research.
Here are a few tips to help you invest in cryptocurrency safely.
As we have said before, it is best to buy cryptocurrencies with money you don’t mind losing. The market is hardly ever stable, so your profit may rise or fall within the range of 20%. Besides, many of the coins on the market will disappear because they will not succeed. Therefore, the investment is not worth losing sleep; use money that won’t hurt if all goes south.
The advent of cryptocurrency has necessitated the emergence of many crypto exchanges and platforms. But not all of them are reliable. Therefore, consider going with an exchange that uses cold storage, one that stores assets offline to minimize the risk of hacking. And also, look for one with insurance in the event of online theft.
Research, research, and research some more. It does not mean you have to learn all about cryptocurrency, but it helps to be abreast of changes and trends. That way, you will be better able to separate the real from the fake.
A cryptocurrency is a digital asset you can use as a form of exchange or investment. You exchange fiat currencies like the euro, dollar, and yen to purchase tokens or coins under a particular currency.
As it gains in popularity, different vendors and trusted stores, both online and offline, now accept cryptocurrencies as a form of payment. It is just like using an accepted form of payment in select places, much like using the euro in Spain or the dollar in the US.
Cryptocurrency exchanges trade in different coins and tokens, making it easy for all categories of traders to buy and invest. Some of these exchanges provide e-wallets to store your coins so that you can have them all in one place and keep an eye on your investments.
An e-wallet works in much the same way as your physical wallet. You can store all your crypto investments in it and safeguard it when you have one. But unlike a physical wallet, you can lock this digital wallet with a key. The key is a unique code that unlocks the wallet and allows you to approve exchanges. It is like a stamp of legitimacy on any crypto trade from your wallet.
Don’t invest in crypto with short-term gains in view. Going in for long-term investments reduces buying and selling in a panic. It helps your investment settle and grow and allows you to see coins that have real value and growth potential. Bear in mind that the cryptocurrency industry is not stable, so investing in it may have disadvantages. However, it promises a lot of profit and growth, both now and in the farthest future. Make it a point to learn all you can about cryptocurrency and keep abreast of the market trends, no matter how much you invest.#2. Ethereum: Blockchain With Smart Contracts
#3. Binance: Largest Crypto Exchange
#4. Cardano (ADA): Popular Blockchain
#5. SOL [Solana]: Blockchain Best For NFT & NFT Games Because of Fast Transactions
How To Invest In Cryptocurrency Safely?
Buy with Money You Can Lose
Work with a Reliable Exchange
Keep Researching
Go In for the Long Haul
Conclusion: Is It Worth Investing In CryptoCurrencies?
