What are the Main Types of Cryptocurrencies?
Cryptocurrencies have grown in popularity all over the world and many investors are investing in these digital currencies. Global leaders, on the other hand, are preferring cryptocurrencies over fiat or traditional currency for daily usage.
Launched in 2009, cryptocurrency was an unknown phenomenon for many, but it has withstood the test of time. Bitcoin (BTC) has become the world’s largest cryptocurrency by market capitalization, thanks to its positive adoption and profitability.
As a crypto investor, you should know which digital currency you want to pick for investment. Experts believe over 10,000 cryptocurrencies are available for investment and you should be careful while making choices.
Let us find out what are the main types of cryptocurrencies that can ensure a better profit.
What are Cryptocurrencies?
Cryptocurrencies are defined as digital or virtual currencies that are booming in the financial markets. Investors across the globe are putting money in these currencies, thanks to their incredible returns.
Cryptocurrencies are supported by blockchain technology that records each transaction permanently on a publicly distributed ledger. These are peer-to-peer payment method systems and are unregulated currencies.
The blockchain technology is protected by cryptography which consists of complex mathematical problems that significantly reduce the chances of fraud. Cryptocurrencies operate free from the influence of a bank or any government regulations that make you the sole owner and manager of your wealth.
You can buy cryptocurrency through a crypto exchange platform where multiple virtual currencies are traded. The transaction cost of cryptocurrency is cheaper as compared to bank transactions.
Carl Runefelt, alias, The Moon, is a global crypto leader who is pushing for the mass adoption of cryptocurrency. He says, “Cryptocurrency is recognized across the world and is not affected by exchange or interest rates. It would also provide individuals living in economically fragile nations more stability and predictability.”
Best Cryptocurrencies to Buy
In today’s time, there are many cryptocurrencies available to buy but not all can ensure better returns since the crypto market is volatile and price fluctuations can take place at any time.
So, what would you do?
Listed below are some of the best cryptocurrencies you can buy right now.
Price: $20,257 (as of November 2022)
Introduced in 2009 as the world’s first-generation cryptocurrency, Bitcoin has always been the favorite of crypto investors. BTC was traded for a few dollars some ten years back, but now it is one the most expensive assets to buy.
The protocols of Bitcoin are designed in a way that only a limited number of BTC can be traded to reduce inflation. This increases the purchasing power of Bitcoin holders and also its value. Carl, on, his YouTube channel, The Moon, says, He says, “Bitcoin is rising 600% and hit $300,000 this year. How? Well, first of all, I think that Bitcoin is the best hedge against inflation that we have in the world right now, and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans. With that said, fiat is the worst form of money we have seen in the history of humans, and I see a huge transition now where we’re going to go more towards a crypto economy, and I am super excited about that.”
Price: $1,542 (as of November 2022)
Ethereum can roughly be estimated as the world’s second-largest cryptocurrency by market capitalization after Bitcoin. Both a blockchain platform and a cryptocurrency, ETH holds huge potential for applications such as smart contracts and non-fungible tokens (NFTs).
ETH has become the favorite platform for program developers who are always looking for new applications.
Ethereum has experienced tremendous growth in the past few years and promises a better future.
Price: $1 (as of November 2022)
Another cryptocurrency that is on the list of the best digital currencies you can buy is Tether.
You might be worried about crypto volatility since cryptocurrencies are decentralized currencies and their value can go up and down at any time. But some cryptocurrencies like Tether have been pegged against fiat currency to reduce volatility.
These digital currencies are called stablecoins. USDT is backed by fiat currencies such as the Dollar and the Euro.
You can invest money in Tether to avoid crypto volatility and make handsome profits.
The crypto market has grown not only in size but in value too. There are many digital currencies available in which you can invest money but being careful about choices is crucial. You can buy any of the above-mentioned cryptocurrencies to increase your wealth comprehensively.