When you hear the word cryptocurrency, you would most likely think of bitcoin, and you’d be forgiven entirely for it. Bitcoin was the first cryptocurrency to hit the market and has grown in popularity since then.
If you don’t fully understand what cryptocurrency is, it’s a form of digital money that is not controlled by a central system such as a government.
A lot of investors are now treating cryptocurrency as a long-term investment because of its surging values. For instance, Bitcoin prices have soared through the roof. 1 BTC was worth about $5,000 in 2020, but the following year, prices hit a record high of $61,000.
Any investor today worth their salt is looking for a piece of that action. And with all the buzz going on about cryptocurrency, it seems very likely that they could be the future of financial transactions.
However, with more than 4,000 cryptocurrencies available in the market, there’s a high interest in finding and investing in the next hot cryptocurrency. If you’re considering investing in cryptocurrency, below is a list of three key cryptos that you should consider.
1. Bitcoin (BTC)
As the oldest form of crypto, it’s easy to see why Bitcoin is the market leader with a market cap and price that’s much higher than all other cryptocurrencies.
BTC holds 40% of the crypto market cap even with thousands of other cryptocurrencies available on the market. As such, it comes as no surprise that big companies like Tesla, PayPal, and most recently, Tesla have chosen to accept Bitcoin as payment.
Even Wall Street bank leaders from the likes of Goldman Sachs and JPMorgan are considering incorporating BTC transactions among their financial offerings.
The risk with investing in Bitcoin is that its value is very volatile. Wild fluctuations will shift the prices up or down thousands of dollars.
2. Ethereum (ETH)
What sets Ethereum apart from other cryptos is that it’s more than just a cryptocurrency. It is also a decentralized network that allows developers to create their own cryptocurrency using Ethereum software. The Ethereum platform enables decentralization to run without any downtime or external interference.
The goal behind this crypto is to come up with a decentralized suite of products that anyone in the world can access. It was launched in 2015 and is currently the second-largest crypto behind the dominant Bitcoin, although it lags significantly.
Binance is among the few cryptocurrencies to have peaked in 2017. During that year, there was a bull market, and the price of all cryptos rose on it before flatlining and ultimately decreasing in value. However, unlike other cryptos, Binance Coin increased slowly but consistently and has since proven to be on the more stable cryptos with very few risks.
Investing in Cryptocurrency Should Be a No-Brainer
The fact of the matter is cryptocurrencies are here to stay; there are no two ways about it. The one question you should be asking yourself is which crypto makes most business sense, or cents for that matter.
To help you decide, take note of the fees associated with transacting, the rate at which transactions are completed, and the ability to use your cryptocurrency of choice for regular purchases.