Cryptocurrency value has increased substantially in the last decade. This has resulted in a skyrocketing number of investors in crypto. Companies like PayPal have shown interest in the currency and are making investments. El Salvador is the first country to adopt bitcoin as its national currency.- Investing in Cryptocurrency
Cryptocurrency is very influential, and world billionaires have their eyes on it. Elon Musk has been influential on Bitcoin (BTC), Ethereum (ETH), and Dogecoin (Doge). Tesla, his company, has investments worth $1.5 billion in bitcoin. In 2021 bitcoin reached a new record high of 69,044 dollars in the exchange market. Cryptocurrency is also in betting as wagers take advantage of amazing NFL Stats to win big.
Read ahead as we explore investing in cryptocurrency!
What is Cryptocurrency?
Cryptocurrency is a digital currency working on blockchain technology. It is used as a medium of exchange when buying goods online. Cryptocurrency is a digital currency with transactions maintained using decentralized blockchain systems.
This means a government or a central author doesn’t control it. Transactions in crypto never fail as its users control it.
How Investing in Crypto Works
Bitcoin is the oldest cryptocurrency form. In 2010 if someone had told you to invest in bitcoin, you would have hesitated. Since then, Bitcoin has grown in value and is seen as the future of cryptocurrency.
Crypto investment is similar to buying stocks of a company in the stock market. The risk is always there where the stock could go down or up. (getzonedup.com) Crypto prices are known to fluctuate depending on various factors.
Crypto value is dictated by supply and demand in the market. Crypto value can be defined as how much people are willing to pay for it in the market. An oversupply of crypto means that the prices will go down. Fewer people willing to sell their bitcoin means that the crypto pricing will increase.
Branding has been influential for Dogecoin value skyrocketing in the market. Elon Musk started the movement with a tweet on Dogecoin, and its value incised. This was a branding win for the cryptocurrency as more people bought it.
The utility of cryptocurrency is influential to its development. Ethereum, a form of cryptocurrency, has become a more efficient currency than bitcoin. They have revolutionized the creation of decentralized applications used in crypto mining.
Top Cryptocurrency to Invest In
The investors in the cryptocurrency world will talk about investing in Bitcoin or Ethereum. These currencies have the largest market cap and trading volume. Cryptocurrencies are volatile currencies, and their prices keep changing. Developing a stable coin is the premier project in the cryptocurrency world.
1. Bitcoin
Bitcoin is considered the digital gold and the fast cryptocurrency to be created. Its value has been increasing and reaching new highs in recent years. This is because it is designed to have a limited supply of 21 million tokens that can be mined from this network. This shows that its scarcity will drive demand to go up.
It is the best place to invest in cryptocurrency. Bitcoin will grow rare resulting in increased value for a long time and its demand. The movement towards a decentralized system of currency has seen world billionaires investing their money in bitcoin
2. Ethereum
This is the second cryptocurrency in the stock market after bitcoin. Ethereum is the only cryptocurrency that could rival bitcoin in the market. The value of this currency is not subjected to scarcity or rarity.
Ethereum introduced smart contracts in the cryptocurrency world. It has more than 300 developers joining the network every day as there is more potential in the network.
The Ethereum block technology is being used by many crypto spaces that rival it. The high level of involvement and influence on cryptocurrency makes it a good investment area.
3. Terra
An open-source blockchain platform is seen as the foundation for stable algorithmic coins. Terra’s mission is to have a fast and secure transaction. It aims at countering the volatility of most cryptocurrencies.
Terra runs on a proof of state model, meaning that validators validate transactions based on the number of coins they hold. This recuses the computation power to run the network, making it environmentally friendly.
4. Dogecoin
Dogecoin was created in 2013 and had its first price boom in 2017 during the crypto boom. This resulted from more investors putting more of their money in crypto.
In 2021 dogecoin’s popularity increased mainly caused by a tweet from Elon Musk. This resulted in more than one thousand percent gain. The risk in investing in this currency is high and could have high gains.
Cryptocurrency is the way to go, and anyone looking to invest should look into it. The world is going to an error where cryptocurrency will be the main medium of exchange.
