Have you ever tried to invest or trade with cryptos? If so, there are numerous things you probably had to learn before embarking on this ideal business. There are several cryptocurrencies that an individual can consider to put money in. The E-coin platforms offer people the opportunity to make money online by exploring the different ways of earning using crypto coins as well as venturing in the best ones. In this blog, I’m discussing what you need to know about the most promising cryptocurrencies.
What Is a Cryptocurrency?
This is a digital currency that’s traded online. New coins are processed through cryptography, which makes it hard to fake them. These currencies are decentralized by the use of a Blockchain tool, meaning there’s no government interference. This also ensures the safety of all transactions, thus making it a secure business opportunity.
The 5 Best Cryptocurrencies to Buy
Imagine for a moment that you want to purchase these coins. Which ones will be ideal? Since there are many of them, it’s appropriate to understand the best options that can earn you sufficient returns. Let me guide you through the five most promising crypto coins:
- Bitcoin (BTC). This is one of the most popular currencies and was the first to have been known. It is also the most liquid with a market cap of over $150 billion. It is the best currency that you can invest online to obtain money quickly and easily. Most businesses worldwide accept the use of BTC as a payment method.
- Ethereum (ETH). This currency was initiated in 2015, and since then, it has made significant strides in the industry. It’s driven by a technology that was such a breakthrough making companies like Microsoft and Intel to create an ETH engine version for use in their operations.
- Litecoin (LTC). The world of crypto coins can’t be complete without mentioning Litecoin. It’s one of the most invested in currency, having a large market cap. Many platforms today like Overstock use this coin as a payment alternative. It has an exceptional algorithm that enhances faster transactions when compared to other cryptocurrencies.
- Ripple (XRP). This is a currency created by Ripple Labs and possesses an exclusive selling point. If you want a cryptocurrency with a low-cost and high-speed money transfers globally, then XRP is the best choice. Its ability to be used offline is an excellent boost to popularity. Ripple has a market capitalization of about $10 billion, making it a potential coin for investment.
- Bitcoin Cash (BCH). This is another excellent option for all crypto traders. It was formulated to counteract the slow transaction speeds of BTC; thus, it’s connected to the original Bitcoin. BCH ensures enhanced scalability, enables larger blocks, and allows faster transactions. Its growth will continue to be on the increase in the cryptocurrency industry, provided BTC retains its position as the market leader.
What to Know Before Buying These Cryptocurrencies
Now you know the best types of crypto coins to buy; what’s next? It’s advisable to have at the fingertips some essential things to understand when deciding on which of them to choose. All the above five are promising, but in case you would love to settle for one, here are some things to check:
- Technology. This is a vital factor to look for. It’s one of the prominent drivers of a crypto’s adoption. Some of the coins, like Ripple and Ethereum, use exceptional technology. A currency may have a unique selling point if only the technology is up-to-date.
- Liquidity. This is established by market capitalization and the number of adopters. Thin liquidity will make it difficult to sell an investment later, and vice versa. Choose a cryptocurrency with substantial liquidity.
- Historic performance. Every progressive business has a record of its activity. When selecting the best crypto coin, ensure you research and know the history of how it performs. How old is it? What’s the growth curve like? What’s the overall performance from the beginning? Crypto that has shown steady growth for more than three years, is a worthy choice.
- Market cap. A cryptocurrency with a high market cap has the most liquidity. This way, you can easily buy and sell them at any point in the investment period. All these things require proper research to know so that you make the right decision.
Where to Buy the Cryptocurrencies
Unlike other physical currencies that can be acquired from banks and other financiers, cryptos aren’t available in such places. You only buy them from exchanges. This means using fiat cash to purchase tokens that are then kept in a digital wallet for trading with various currencies on the platforms. The largest exchanges you can opt for include; – Coinbase, Binance, CoinDesk, Terrexa, and Kraken.
Using some of the exchanges can be uncertain as they’re not all the same. Before you choose an exchange, there are a few criteria to have in mind. Here’s a breakdown:
- Fees linked to trading. The exchanges need to make money, and they usually do that through fees. There are different fees that they may charge, such as trade fees levied on any transactions posted on the platforms. Deposit/withdrawal fees are also charged when you deposit or withdraw currency.
- Identity problems. Most of the exchanges participate in ID verification to keep track of fraudulent acts. If you’re worried about your identity being linked to the sites for any reason, you should consider using exchanges without ID verifications.
- Currency pairs. You might not find all the crypto coins in some of the platforms as most deal entirely with a single currency, mostly Bitcoin. Therefore, if you want a currency pair, then consider such traders like Coinbase that offer a variety.
- Research adequately. Not all cryptocurrency traders operate the same way; thus, it would be best to do some sufficient research about a particular one you choose. Try and learn about the services, the rates, fees, and coins availability.
Storing Your Cryptocurrencies
After you obtain your potential cryptos, there’s the need to store them. They are stored in digital wallets. There are numerous wallets you can use, but here are the different categories available:
- Online wallets. They are on the cloud, and you can access them from any computer.
- Desktop wallets. Safer than the online ones as they’re installed on your personal desktop.
- Mobile wallets. These are apps that are placed in a smart device, and you can use them at any time.
- Hardware wallets. They store the private key on a hardware device like a USB. They’re much safer and deny access to third parties.
Are you ready to make money using cryptocurrencies? There’s no quick and easy way you’ll find to earn that investing in E-coin. Use the suggestions provided in this blog to get you started and experience the joy of crypto investing. You can also do further study on the subject from 365 Credit Solutions to find more available information about this potential money-making option.