Did you know that there are over 19,000 different kinds of cryptocurrencies in the world?
While its widely accepted that Bitcoin launched the entire segment, thousands of different cryptocurrencies and exchanges have evolved over the last decade. This resulted in the entire crypto market growing to a high of over $3 trillion in 2021.
If you’re looking for the best crypto to invest in, the truth is that it depends on your personal ambitions. While altcoins promise the largest returns, they also come with the most risk. This is why it’s so important to learn about the different types of crypto and what makes crypto go up and down before making any investments.
Interested in learning more about the world of cryptocurrency? You’re in the right place. Here’s everything you need to know about crypto.
Different Types of Crypto
As mentioned above, there are thousands of different types of crypto. While some of these coins were made for fun, others come with high-tech features that promise to revolutionize the way we transact online.
This is why it’s important to understand what your financial goals are before getting started.
Different kinds of crypto come with entirely different risk profiles. A great example of this is Tether, the crypto that is linked to the price of the United States Dollar. This means that 1 USDT will always equal $1.
In this way, the crypto aspect of the coin simply transfers all the benefits of crypto into the ordinary U.S. Dollar. However, other coins such as Bitcoin and Ethereum can fluctuate in price depending on demand, putting your investment at risk in the market.
Benefits of Investing In Crypto
Cryptocurrency is one of the best ways to diversify your portfolio. This is because crypto can act as a hedge against inflation, helping to decrease the total risk profile of your portfolio. In addition to this, the decentralized nature of the crypto market helps keep your investments safe.
This is because crypto is based on blockchain technology, a much more advanced ledger system that helps protect you when transacting online. In this way, crypto is the most effective and efficient way to send and receive money in the modern age.
Best Crypto To Invest In
If you’re thinking to invest in crypto, there are a few big names to consider. The big names are always the best investments as they come with the least amount of risk. Here’s a quick look at the most popular cryptocurrencies to invest in.
- Bitcoin (BTC)
Dating back to 2009, Bitcoin changed the entire financial industry forever. Bitcoin is by far the most popular cryptocurrency on the market, with hundreds of billions of dollars invested around the world. While it’s been around for a while, Bitcoin soared to record highs in 2021, making it an essential part of any diversified portfolio.
Bitcoin is based on blockchain technology and is an incredibly safe way to transact online. There are even physical Bitcoin ATMs around the world for you to quickly convert cash to crypto instantly. This highlights the widespread acceptance of Bitcoin in the general economy.
- Ethereum (ETH)
Ethereum is the second most popular cryptocurrency with a market capitalization of over $150 billion in 2022. This innovative cryptocurrency is more than just a coin but also opens up the digital aspect of the token itself. In this way, you can customize and add additional features to the coin to make it more useful.
- Binance (BNB)
Binance is one of the largest cryptocurrency exchanges in the world. This world-class platform allows you to transact and hold multiple other cryptocurrencies but also lets you invest in the platform’s crypto, Binance. This cryptocurrency has exploded over the last few years, with around $50 billion still invested in Binance after the crypto crash.
Is Crypto Worth It?
Crypto has been around for a while but made headlines back in 2020 when Bitcoin went on an incredible run. Bitcoin went from around $8,000 at the beginning of 2020 to a high of almost $65,000 at the end of 2021. This highlighted the growth potential of cryptocurrency and saw millions of people take the sector seriously.
However, it must be said that the price of Bitcoin also receded back down to under $16,000 in October 2022. In this way, the volatility of the crypto market highlighted the risks associated with investments of that nature.
So, is crypto worth it? The truth is that it has the potential to rise back to its all-time high, making you a pretty penny in the process. However, nobody is sure if that will happen anytime soon.
Invest With Accredited Investors
As mentioned above, the crypto market comes with its fair share of risks. This is why it’s always advisable to invest after doing your research. In addition to this, a better option would be to invest through an accredited investor.
Accredited investors are specialized, experienced, and sophisticated investors that are allowed to trade unregulated securities. This means that they have the knowledge, experience, and ability to invest in unregulated, risky environments like crypto. In this way, you can still benefit from the upsides while leaving the specifics to the professionals.
Investing In Crypto
If you’re looking for the best crypto to invest in, your safest bet is to go with one of the big names. These are far less risky to invest in and are handled by accredited investors around the world. In this way, you can diversify your portfolio with some crypto to lower your overall risk profile.
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