The online marketplace has evolved rapidly through the years, drastically changing how we use and understand the concept of money. One significant development is the cryptocurrency market, which kicked off a few years after the millennium began, and has since grown into a bustling economic gamechanger. Cryptocurrency is being used in an increasing number of markets. You can even wager cryptocurrency like Bitcoin to play the best slot games at the best casinos online. For some free casino money tips, here are some of the most promising cryptocurrencies on the market that you can invest in today.
Top 3 cryptocurrencies to invest in
Bitcoin
BTC is by far the most popular cryptocurrency, and has been at the forefront for the movement since its development in 2011. With value rising after the Halving, BTC commands the market with high liquidity. However, it is also notoriously volatile, losing value by the thousands within the span of mere months. On the other hand, it has also demonstrated consistent growth despite this.
Ethereum
Despite Bitcoin being the most popular, Ethereum is actually the most influential cryptocurrency, because it allows anyone to build through its blockchain, which allows them to create their own decentralized app. Ethereum is at the center of the decentralized finance revolution. If the trend continues to grow, then so will the interests of institutional and retail investors. Ethereum has a low price for a highly viable investment, which makes it great for those breaking into the market.
Ripple
Even though the Ripple XRP token was dethroned by Tether as teh third-largest crypto, it is still highly relevant because it is the fuel for the open-source platform developed to facilitate fast and cheap transactions. The company has accued trust from a large number of big name clients, including JP Morgan and HSBC. Ripple also has a lot of important deals with money-transfer companies like Azimo ahead. Since global transition from the fiat system to a blockchain system is imminent, Ripple is one of the best cryptos to invest in because of its role facilitating the transition on an institutional scale.
Why invest in cryptocurrency
Low minimum investment bar
Cryptocurrencies are divisible, meaning you can purchase them in smaller fractions. What this does is create a low investment bar that anyone can get involved in, allowing you to build a diverse portfolio.
Liquidity
Since cryptocurrency brokers and exchanges are supposed to be open 24/7, this means you can buy, sell, and trade your assets at any given time.
Transparency
Every blockchain transaction must be available, accessible, and visible to anyone on earth, in order to provide everyone with an omniscient amount of knowledge regarding the project.
Asset diversity
When investors diversify assets within the wide selection of cryptocurrencies across the market, they can lower or at the very least mitigate the risks they are taking.
Fees
Cryptocurrencies have lower fees than stock trading or other assets.
What to consider when choosing a cryptocurrency to invest in
Security and authenticity
It is of utmost importance that you do research beforehand before choosing a cryptocurrency. When you have a few options in mind, make sure to do thorough background checks to ensure you are choosing a legitimate platform.
Method of purchase
There are different ways you can buy cryptocurrency. Some require bank deposit transfers, some use credit and debit cards, some may accept PayPal and other payment processors, while some only accept cryptocurrency. If you are just starting out, then you must pick a platform that accepts fiat currency in order to join the market.
Supported tokens
It is most common for cryptocurrency exchanges to support big names in the market such as Bitcoin and Ethereum. However, these are only two within a vast network of cryptocurrencies with plenty of variation across exchanges. Some trade with a long list of altcoins, while some might only trade with three or four major cryptocurrencies. You can use “stable coins” in order to hedge the volatility in cryptocurrency market.
Exchange type
There are three primary types when it comes to cryptocurrency exchange. The first is trading platforms, which are the most common. These are markets where you can buy or sell goods or orders in exchange for cryptocurrency. There are also P2P exchanges, which connect buyers and sellers by using a trustless system for exchange. Finally, there are cryptocurrency brokers, who set prices so that buyers can purchase the cryptocurrency through the respective platform.
Fee structure
There are different transaction fees and structures that may vary with different exchanges. Some exchanges provide discounted fees when an exchange’s token is used to complete a transaction.