With nearly 7000 different cryptocurrencies, figuring out which one you should buy for the first time can be daunting. Though there are benefits of buying cryptocurrency, there are also risks involved, including volatility and fraud.
If you’re considering buying cryptocurrency but aren’t sure where to start, then do your research and only jump in when you are completely confident. In the meantime, here are five options to explore:
As the first cryptocurrency on the market, bitcoin isn’t a bad place to start. Of all the cryptocurrencies out there today, bitcoin is the most traded and has the highest market cap.
It’s also the most widely accepted bitcoin, so if you’re planning to make purchases with your cryptocurrency, this may be the best one for you.
As a beginner, bitcoin is a great first choice simply due to its popularity. Although it is pretty volatile, it’ll give you practice with trading bitcoin, and you can feel reasonably confident that it won’t disappear anytime soon.
You’ve heard about it because Elon Musk tweeted about it, but what is Dogecoin? Dogecoin was invented primarily as a joke, based on the Doge meme that was popular in 2013. Despite being a joke, it’s still around and has seen considerable growth recently.
While you shouldn’t expect Dogecoin to become one of the most valuable cryptocurrencies, this is precisely what makes it an excellent choice for beginners.
You can buy Dogecoin for a meager price and get experience in trading cryptocurrencies before making a substantial financial investment. If you find out that cryptocurrency just isn’t for you, you won’t be any worse off financially.
If you’re looking at rationalizing your portfolio, you may also be looking at cryptocurrencies. Portfolio rationalization involves scaling your portfolio to changes in the economy, thereby making it dynamic.
Because banks don’t back cryptocurrencies, they aren’t as influenced by economic ups and downs, making adding them to your portfolio potentially worthwhile. However, cryptocurrencies are prone to their volatile markets.
The perfect solution to both of these problems is Tether. Tether is known as a ‘stable’ coin, meaning it keeps its market value up while avoiding volatility. This makes it a less risky cryptocurrency to invest in, especially for beginners.
Ethereum is bitcoin’s most significant competitor. Ethereum itself is also not a cryptocurrency but a network. However, Ethereum’s network is powered by its cryptocurrency, ether.
When deciding between ether and bitcoin, you need to consider what you want your investment to do. If you’d like to buy a cryptocurrency as an investment to hold on to, much like you would wish to when buying gold, then bitcoin is the best choice.
Alternatively, if you want to trade cryptocurrency and take advantage of market volatility, using Ethereum will allow you to do just that.
EOS is similar to Ethereum but has some vital differences. Unlike Ethereum, EOS has zero transaction fees. It can also process a transaction much faster than Ethereum, making trades almost instant.
However, EOS is still very much in its early days. This could be a good thing, especially if you buy now and it sees considerable growth within the next couple of years. There are no guarantees that this will happen, though, making an EOS investment a big gamble.
On the other hand, if you’re a beginner who doesn’t shy away from high-risk investments, EOS may be an excellent choice for you.
