As a beginner in the world of cryptocurrencies, you are unlikely to know which cryptocurrency is the best and which one to invest in. There are over 6000 cryptocurrencies, so choosing the best one with high growth potential can be an arduous task. Bitcoin is an obvious crypto investment given its popularity and steady growth, even with frequent market volatility. However, there are many other cryptocurrencies that you can also invest in with high growth potential.
BTC remains the most valuable and profitable of all cryptocurrencies, which will be the case for a long time. The price, market volume and market capitalization of bitcoin are much higher than those of other cryptocurrencies. Even though there are thousands of other coins on the market, bitcoin still accounts for more than 40% of the cryptocurrency market capitalization, making it an ideal investment option for beginners and cryptocurrency experts. Ripple also invested heavily in non-fungible token projects using the XRP ledger, a public blockchain.
Many experts claim that this investment puts Ripple in the position of being an “Ethereum killer”. This is a stablecoin, so it is quite unique among other cryptocurrencies. Stablecoins are supported by fiat currencies such as the euro or the US dollar. This means that if an investor buys 1 Tether coin, it will have the same value as 1 fiat currency (backing the currency).
Theoretically, what this means is that Tether will have a more stable value than other cryptocurrencies that suffer volatility in the market. There are many ways to buy cryptocurrencies, although it is likely that the most accessible method for beginners is a centralized exchange. Centralized exchanges act as a third party that monitors transactions to give customers confidence that they are getting what they pay for. These exchanges often sell cryptocurrencies at market prices and make money from fees for various aspects of their services.
While cryptocurrencies exist digitally, you can still have a way to store them online and offline through hot wallets and cold wallets. If you are a beginner, the ease of access to offline wallets will be more useful and versatile. However, cold wallets offer more protection against hackers and other criminals. As part of your journey towards diversifying your assets, learn how to use both types of wallets.
The easiest way to start buying and holding cryptocurrencies would be with an exchange. There are several popular ones and you can use them directly on your smartphone. This allows holders to buy, sell and store their cryptocurrencies on their phone or on a computer. The Financial Conduct Authority, which regulates UK investments, recently warned of the high number of cryptocurrency scams and gave suggestions on how to avoid them.
When people think about cryptocurrencies, “complicated” is probably one of the first things that come to mind. Although centralized exchanges are relatively easy to use, they can also be an attractive target for hackers given the volume of crypto flowing through them. If you have a powerful computer with a gaming-capable graphics card, you can also mine cryptocurrencies for free. Crypto assets can rise and fall to different degrees and for different periods of time, so by investing in several different products, you can isolate yourself to some extent from losses in one of your holdings.
This is what made cryptocurrencies very popular years ago on the dark web to buy drugs or other illegal things over the Internet. Some also allow you to finance a purchase with your credit card, although this can be a risky move with a volatile asset such as cryptocurrency, because interest costs can deepen your losses if the value of your investments decreases. These fluctuations can be scary, but for some investors they are the key to making money with cryptocurrencies. If you already own cryptocurrency, you can transfer it to your account from a digital wallet or other platform and then use it to trade.
If you can't afford to lose it, everything, you can't afford to put it into risky assets like cryptocurrency or other market-based assets, such as stocks or ETFs, for that matter. Whichever way you choose to invest in cryptocurrencies, doing your homework should first minimize mistakes and improve your potential profits. If you are looking for an exchange that operates solely within the world of cryptocurrencies, look for pure gaming crypto exchanges. .