“Successful investing is about managing risk, not avoiding it.” – Benjamin Graham.
In the modern world, there are two ways to earn money, i.e., by working hard and getting an income. And, secondly, by making investments. However, to safeguard the future, it is essential that people follow both of the ways. In simple terms, every person should use some part of their income for investment.
There are numerous options available in the market where you can invest your money. However, in this article, we are going to talk about the trendsetter investment option.
Yes, you guessed it right!
In this article, you’ll learn about cryptocurrency investment and the options which are available to you.
What are cryptocurrencies?
Cryptocurrency, in its broadest sense, is decentralized digital money in the form of tokens or “coins.” These are produced, managed, and tracked with the help of a distributor ledger like blockchain. And are designed to be free from government control and manipulation.
The term “crypto” refers to the complex cryptography (encryption) that enables the creation and processing of digital currency as well as their transactions across decentralized platforms. Typically, cryptocurrencies are built as code by teams that include methods for issuance and other controlled mechanisms. Also, be sure to check the security analysis of crypto projects before you make your investment decisions.
Nonetheless, keep in mind that these are not real assets or tangible securities.
7 Best Investment Options
One of the cryptocurrencies that gained popularity (almost every entrepreneur and investor is aware of) is Bitcoin. However, many people don’t know that there are several other digital currencies besides bitcoin. To be precise, there are approximately 7000 cryptocurrencies in the market.
Shocking, isn’t it?
Even so, in this article, you’ll learn about the top 7 digital tokens that you can invest in (including bitcoin.) So, without further ado, let’s get down to the business.
Ethereum (ETH)
The first one on the list is Ethereum. It was launched in 2015 and is the second-largest digital currency after bitcoin. It is a decentralized software platform that is based on blockchain technology. It enables dapps (decentralized applications) and smart contracts to be built without any kind of inference from the government or any other third party.
The objective of ETH is not just to create decentralized money. Instead, it aims to replace servers with a worldwide system of nodes to decentralize the internet, thus creating “one computer for the entire world.”
With a market cap of more than 400 billion dollars (approximately 19% of bitcoin), it is expected to soon become the most popular cryptocurrency. This year, ethereum plans to upgrade its consensus algorithm to proof-of-stake. It’ll help ethereum’s network to run with less energy along with better transaction speed.
Cardano (ADA)
This cryptocurrency is created by mathematicians, cryptography experts, and engineers with a research-based approach. To put it simply, it is an “Ouroboros proof-of-stake” currency. This currency is still in the early stages. However, it has beaten ethereum’s “proof-of-stake” consensus model.
It goes without saying that Cardano stands out among more prominent cryptocurrencies and proof-of-stake peers. In January 2021, the market capitalization of Cardano was around 9.8 billion dollars. One ADA trading price has also risen from 0.31 at the beginning of the year to 1.34 dollars.
In addition to this, Cardano aims to provide solutions for voter fraud, legal contract tracing, chain interoperability, along with establishing decentralized financial products.
Bitcoin (BTC)
Needless to say, bitcoin is the most famous cryptocurrency. With a market capitalization of more than 1 trillion dollars (in April 2021), it accounts for approximately 45% of the crypto market. According to the blockchain consultants, investing in bitcoin can be used as a hedge against inflation as well as macroeconomic instability.
Moreover, it is also becoming the “gold standard” within decentralized financial markets. In simple terms, you can use it as collateral for loans, stablecoins, and many others. Furthermore, with the easy availability of bitcoin ATMs, purchasing bitcoins is effortless. You can simply search for a Bitcoin ATM near me and invest your money. Just follow the instructions given on the ATM to purchase the currency instantly using your fiat currency bills.
That being said, when trading in bitcoin, you need to ensure that you send bitcoin to an accurate address (which is controlled by you). The reason being is that the transactions are generally irreversible. So read the instructions carefully. Not to forget, you can also use the ATM to buy ETH and LTC.
Litecoin (LTC)
Litecoin was launched in 2011 and is often referred to as “silver to bitcoin’s gold.” LTC is based on the open-source global payment network. Just like every other digital currency, it is also not controlled by any central authority. It uses “scrypt” as work proof. Scrypt can be decoded with the help of consumer-grade CPUs.
As compared to bitcoin, the transaction confirmation time is faster in LTC. The market capitalization of LTC is 10.1 billion dollars (as of January 2021).
Polkadot (DOT)
Polkadot aims to deliver interoperability among the blockchain. It is designed to connect oracles, permissioned, and permissionless blockchains so that the whole system works together. The security, speed, and governance of DOT are impeccable. As of January 2021, one DOT trades for 12.54 dollars, and market capitalization is 11.2 billion dollars.
One of the best parts of Polkadot is that instead of creating decentralized applications (like in ethereum), the developers can create their own blockchain. Moreover, developers don’t have to create their own security measures. Rather, the concept is to share security that Polkadot’s chain already has.
Dogecoin (DOGE)
It won’t be wrong to say that so far, 2021 has been the year of DOGE. The currency surged more than 13,000% in 2021, becoming the fourth-largest cryptocurrency. Early May was the best month for this currency. There are already 123 billion dogecoins in circulation, while bitcoins are capped at 21 million coins. This currency is expected to grow even more in the near future; thus, it is an excellent opportunity for the investor specifically because the creators foresee it as a lighthearted cryptocurrency.
The bottom line
Investments provide better returns and a secured future. Therefore, you must make one or the other type of investment. Nonetheless, now that you are familiar with all the cryptocurrency investment options available, you decide the best for you.
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