If you’re thinking about investing in cryptocurrencies, you need to know which of them are the best. Sure, Bitcoin is very promising right now, but it’s not the only option. Ethereum is just as good, and in many ways, is even better than Bitcoin.
However, there are other cryptocurrencies too – Ripple, Litecoin, and Monero – they’re all great options that can diversify your portfolio in a meaningful way. To find out what else is worth looking at (or looking away from), check this out.
Why Now Is a Good Time to Invest in Cryptocurrencies
If you want to know about the future of cryptocurrencies, you need to know that it all hinges on Bitcoin first and foremost. This is the cryptocurrency that started it all. It should also be noted that there are a lot of people who have become very rich because they invested in Bitcoin early on. These people have seen the value of their initial investment skyrocket and now they’re holding onto their investments instead of cashing out. However, if you ask why now is a good time to invest in cryptocurrencies, you should know that there are a few reasons this is the case.
One reason why investing in cryptocurrency right now could end up being exceptionally beneficial for you is because the crypto market is experiencing a dip at the time of writing this article.
Bitcoin ─ The Original and Most Well-Known Cryptocurrency
Let’s start with the basics: Bitcoin is the original and most well-known cryptocurrency. It was the first one to be mined and it is still way ahead of all the rest. If you’re curious about how Bitcoin works, check this out.
Bitcoin has been around for nearly 13 years now. Back when it was first released, it cost a fraction of what it does now. If you invested $1,000 in bitcoin back in 2010 when the currency first started gaining traction, your investment would be worth well over $1 million right now. Yes, this is true.
However, that’s not the only reason why Bitcoin is such a good investment right now. You see, Bitcoin has also been largely left alone by regulators and governments so far. It hasn’t been banned like other cryptocurrencies have been in some countries.
What’s even more promising about Bitcoin is that its protocol enables it to handle a very high volume of transactions with ease.
Ethereum ─ A Newer Cryptocurrency with a Lot of Potential
Ethereum is a little newer than Bitcoin, but it’s still a lot more secure and reliable. It has a great development team behind it and its whitepaper promises that the Ethereum platform will be able to handle more transactions per second than Bitcoin can. You can monitor Ethereum’s progress at okx.com.
Ethereum is also capable of handling smart contracts, which are codes that can help facilitate other agreements and transactions like securities, derivatives, loans, as well as property rentals, and sales.
So, Why Is Ethereum Worth Looking Into?
Bitcoin’s history of being left alone by regulators is starting to crumble thanks to a little thing called cryptocurrency regulation. This means that it’s only a matter of time before Bitcoin is regulated as well as any other currency out there. Ethereum can be mined just like Bitcoin; however, more people are mining it than Bitcoin right now.
Litecoin ─ A Cryptocurrency with a Faster Transaction Time Than Bitcoin
Bitcoin’s transaction confirmation time is around 10 minutes. Litecoin can do it in half the time.
Litecoin, a cryptocurrency that was inspired by and often considered the silver to Bitcoin’s gold, is a great option for investors. The reason for this is that it has a faster transaction time than Bitcoin does. It’s also worth noting that Litecoin never had an ICO, which means that it hasn’t been pre-mined and mined by early investors as many other cryptocurrencies have been.
One of the biggest advantages that Litecoin has over Bitcoin is that it has far more currency units than Bitcoin. This means there are far fewer decimal places when transacting with Litecoin compared to when you’re transacting with Bitcoin.
Monero ─ A Currency Focused on Privacy
Monero is a newer cryptocurrency and it’s focused on providing the highest levels of privacy when transacting with the currency. Monero transactions can be private, anonymous, and secure – all at once.
By creating a cryptocurrency that focused on privacy, Monero has attracted tons of individuals who want to remain anonymous when transacting with money. This also means it has attracted more developers as well as individuals who are interested in mining it due to its attractive value proposition.
Monero also stands out because it uses a ring signature system instead of a traditional address system. Here’s an explanation to help you understand what this means: A ring signature is an encrypted digital signature that resembles a street address or email address. This means that transactions made with Monero are confidential and secure.
Monero is also very fast to transact, and it’s focused on providing the highest levels of privacy. This means there are few delays when making transactions with this currency.
Ripple ─ A Cryptocurrency for Banks and Other Financial Institutions
Due to its focus on the banking industry, Ripple stands out from the rest of the bunch in a lot of ways. First, it’s designed for large business bank transfers instead of individual transfers. Second, it’s a cryptocurrency that is more centralized than other cryptocurrencies. This means that it has better security and less risk of fraud.
However, despite how much potential it has, Ripple is still very controversial in the cryptocurrency community. Some people believe that this cryptocurrency is a little too centralized, while others believe there are other issues to be concerned about as well.
Why Now Is a Good Time to Invest in Cryptocurrencies
Whether you’re investing in Bitcoin or any other currency, there are a few reasons why now is an incredibly good time for you to start doing so. There are a lot of people out there who are convinced that cryptocurrency regulation is not far off.
Now that there’s a greater need for the confidentiality and security provided by cryptocurrencies, more and more individuals have become interested in investing in cryptocurrencies.
There are also a lot of debates about what regulations should be imposed on cryptocurrencies. Some people believe that cryptocurrency should be banned at all costs, while others believe it’s best to legalize it just so the government can tax it. In any case, people will always find reasons to disagree when it comes to cryptocurrency regulations.
Why You Should Invest in Multiple Cryptocurrencies
Even if you’re not convinced that cryptocurrency is a good investment, there’s no doubt that you should still consider investing in multiple cryptocurrencies. This means that when one cryptocurrency’s value plummets, the value of your other investments should be able to make up for it.
This way, if one cryptocurrency winds up tanking between now and 2025, you’ll still have others to fall back on instead of losing everything. This can help keep your nerves in check when investing in cryptocurrencies as well as a hedge against losses.