The increasing popularity of digital assets has surely drawn our attention. When we look back to just a decade back, crypto was just a myth. But the success of cryptocurrencies has made some of us realize that investing early is the best option. However, the questions settle at what to invest in? Or which one among bitcoins, altcoin, and the stable coin will be best for trading and investing.
If you see bitcoin is the grandfather of crypto and have been in the market since 2009. And, the bitcoin industry is quite rich, as you know how high the prices are. Even though you do not we will discuss that later in this article. However, you do not always have to buy bitcoins for a stable coin. This means that you can open your world to all the proximate options and then choose wisely. Sometimes through stable coins, you can make millions, as they are not subjected to volatility.
Hence, your decision for investment entirely depends on the present market. It also includes your favorable options, depending on the payment you make and the term you choose. Let us first discuss the definitions to understand better what- Bitcoin, Altcoins, and Stablecoins are.
Cryptimi also shows a list of the top 5 cryptocurrency to invest this year.
What are Bitcoins?
Bitcoin is one of the first cryptocurrency that introduced the world to blockchain technology. Bitcoin was introduced by a pseudonymous entity known as Satoshi Nakamoto. Even to date, no one knows who exactly that person or group is or are. Since the very inception of bitcoin, only a few assumptions have come in light, proving nothing solid on who Satoshi is. However, the Satoshi we investors know is the smallest piece of bitcoin i.e. 0.00000001 ฿.
Bitcoin can be purchased using the bitcoin exchanges like bitcoin system. Once you make the purchase your digital asset will be stored in the unhackable blockchain network. The security that bitcoin provides is top-notch, however, there are some potential risks. Any investment has its share of risk so does bitcoin, if avoided wisely can assure you the safest transaction in the world.
The present rate of bitcoin is $11,250 on 8th May 2020; however, it is expected to increase in the future. Well, it is rising constantly there is no doubt about that, but it sure will reach millions in the next few years.
How to and when to invest?
If you want to invest in bitcoin, then you must consider spending over $10,000 in one go. The industry experts suggest that making investments that are for the long-term is the most profitable one due to the volatile market. But if you are not into the long-term wait plan then you can invest as day traders. Invest for a short time, then withdraw when the rate rises and continue with small trading for the time being.
What are altcoins?
The bitcoin alternatives are known as altcoins. This means that all the other cryptocurrencies other than bitcoin. Most of the altcoins are a copy of the original bitcoin source code, but with alterations. The new altcoins to compete with bitcoin are coming up with new concepts for purchasers.
There are over 1600 altcoins in the market that you can choose from. Among these, the most famous ones are Litecoin, Ethereum, and Ripple. The crypto engine website will provide you with altcoin options as well.
The present rate of some altcoins
Currently, Ethereum is $388.05, Litecoin is $57.44, bitcoin cash is $287.36, EOS is $3.05, and several others.
What are Stablecoins?
These are stable coins that are not subjected to market volatility. These coins are gaining traction in the crypto industry rapidly to offer a stable platform. These currencies are fixed mostly, unlike other cryptocurrencies like altcoins and bitcoin. These coins are stabilized by attaching it with other assets such as national currencies or gold.
The stable coins just like other cryptocurrencies are private, secure, and transparent. Some of the examples are Paxos Standard and Gemini Dollar that are powered by the US dollar i.e. regulated and approved by the Financial service department of New York State. Other than that, the most famous stable coin is Tether rated at $1.00, even this coin is powered by the US dollar.
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