Cryptocurrency refers to digital currencies that are not managed by any central systems. Unlike fiat currencies that are managed by the respective government of the country where the currency is based, cryptocurrencies are decentralised, and therefore are not affected by inflation or political events, for example. Cryptocurrency is based on blockchain technology. By now, most people have heard of some of the most popular cryptocurrencies such as Bitcoin. This digital currency is continuing to gain more and more traction on Wall Street, and as more digital currencies become available, investors have lots of options. Here are some of the best cryptocurrencies to consider investing in this year, and how to get started.
Bitcoin is the most well-known cryptocurrency, and also the one that is worth the most. BTC has been around for the longest compared to all the cryptocurrencies that are available today, and it’s clear to see why it’s so popular. Its volume, market cap, and price surpass all other cryptocurrencies, and BTC represents around half of the crypto market gap even though new cryptocurrencies are being created all the time. If you want a relatively safe investment, Bitcoin is usually your best bet. And the best part is that even though one BTC is now valued at roughly $50-60k, you don’t have to buy a whole one.
Ethereum is another unique crypto type in that it is not only a digital currency but also a network, where developers can create their own decentralized apps. Although this cryptocurrency has not yet caught up to Bitcoin when it comes to value per coin, it is already one of the most valuable altcoins on the market and is much further ahead than the majority of other digital currencies as a result of its unique technology.
Although Litecoin came onto the market around the same time as Bitcoin, it didn’t take off quite as well as its competitor. Litecoin is supposed to be lighter and faster than Bitcoin. When it comes to completing transactions, Litecoin is four times as fast as Bitcoin and fees are significantly lower– a fact that is expected to seriously increase its value over the next few years.
Ripple stands out from the crowd of cryptocurrencies due to the XRP token and ability to make international transactions. Unlike making a bank payment that could take up to ten business days to complete with sending money internationally, Ripple makes it easy to send money to anywhere in the world within mere seconds. Due to this, this cryptocurrency has contracts with several major banks around the world which has made it highly accessible.
How to Invest in Cryptocurrency
With an increasing number of cryptocurrencies available to buy, more and more people are considering getting started with making this type of investment. If you want to start trading cryptocurrency and making the most of its growing popularity, you will need to start by finding a cryptocurrency exchange. You can easily do this using Paxful, where you can find over 350 different ways to buy and sell Bitcoin and other cryptocurrencies including the option to trade your LTC to BTC and more. Paxful is trusted by thousands of users and is easy to use, making it an ideal option for beginners.
What to Look for in a Crypto Exchange
Finding the right crypto exchange for you is the first step towards successfully trading any of the best cryptocurrencies available right now. When choosing a cryptocurrency exchange, there are various factors to consider including:
The security of the exchange should always be a top priority since you are going to be making financial transactions. While it may be inconvenient to wait for approval, it is always better to opt for an exchange that conducts Know Your Customer checks to protect against money laundering and scams. Look for an exchange that is regulated by the appropriate financial regulatory body in your country and has strong security strategies in place to protect your money and personal details.
It’s important to ensure that the exchange you are considering will allow you to buy the cryptocurrencies you are interested in trading. Most of the time, the top exchanges offer a range of the most well-known and popular digital currencies, and you should have no problem finding the above options to invest in. However, if you are interested in trading lesser-known altcoins, you may need to find a more specialist exchange.
Before choosing an exchange, it’s also worth checking out the payment methods on offer to ensure that you will be able to buy and sell cryptocurrencies in a way that is suitable for you. Most of the time, you’ll easily be able to find exchanges that allow you to buy and sell cryptocurrencies using a debit card, credit card, bank transfer and other popular options.
Last but not least, good customer support might be an essential for you if you are new to the world of cryptocurrency trading. Along with looking for an exchange that makes it easy for you to get in touch with somebody if you need advice and support, it’s worth looking out for an option with an extensive knowledge base and lots of information on offer to help you learn, along with a platform that is easy to use and navigate.
Cryptocurrency has taken the world by storm. If you are interested in getting in on this new investment type, the above cryptocurrencies are some of the best options to consider trading this year. Before you trade, be sure to find a suitable, safe, and reliable exchange.