Choosing the Right Cryptocurrency: What Crypto Should I Buy?
Bitcoin, Ethereum, Ripple, Bitcoin Cash… With over 4,000 different cryptocurrencies available in today's market, it can be overwhelming to decide which one(s) to invest in. However, don't worry - we've got your back! In this post, we’ll take a closer look at some of the most well-known cryptocurrencies and help you decide which one is best for you.
Bitcoin (BTC)
Undoubtedly the most famous cryptocurrency, Bitcoin is often seen as the "gold standard" of digital currencies. It was the first cryptocurrency, founded in 2009 by an anonymous developer known by the pseudonym Satoshi Nakamoto. Bitcoin's value has fluctuated wildly over the past several years, reaching highs of almost $20,000 in late 2017 before crashing back down to around $3,000 by the end of 2018.
Despite its volatility, Bitcoin remains a popular choice for investors looking to make cryptocurrency investments. It has a limited supply of just 21 million Bitcoins, making it valuable in the long term. And with more and more companies accepting Bitcoin as payment (such as Microsoft and Expedia), its usefulness is growing.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap and was launched in 2015 by a programmer named Vitalik Buterin. Ethereum's blockchain enables developers to create decentralized applications (dapps) on top of its platform. This means that developers can use Ethereum to create new cryptocurrencies (known as "tokens") and run decentralized applications that execute smart contracts.
Ethereum is also more stable than Bitcoin and has a higher transaction speed. Its value also skyrocketed in 2017, reaching an all-time high of around $1,400 in January 2018. However, like Bitcoin, Ethereum has seen its value fluctuate wildly since then.
Ripple (XRP)
While Bitcoin and Ethereum are decentralized cryptocurrencies, Ripple is a centralized cryptocurrency that works with traditional financial institutions. It was created by Ripple Labs in 2012 with the aim of making international money transfers faster, cheaper, and more efficient.
Ripple has some notable partnerships with big-name financial institutions like Santander and Standard Chartered. That's because unlike Bitcoin and Ethereum, Ripple's blockchain technology enables transfer of fiat currencies, making it attractive to banks and other financial institutions.
Bitcoin Cash (BCH)
Bitcoin Cash was created in 2017 when a group of developers forked Bitcoin's blockchain to create a new currency with larger block sizes. Bitcoin Cash is faster and cheaper to use than Bitcoin, but it's unclear whether it will ever reach the same level of adoption and popularity as Bitcoin.
Final Thoughts
With so many different cryptocurrencies available, it's essential to do your own research before investing in any particular cryptocurrency. Consider your investment goals, personal preferences, and risk aversion when deciding on which cryptos to buy.
While Bitcoin remains the most well-known cryptocurrency, Ethereum, Ripple, and Bitcoin Cash are also popular investments with their own unique advantages and drawbacks. By learning more about each of these cryptocurrencies and considering your own investment goals and preferences, you can choose the cryptocurrency that’s best for you.
