There are many reasons to invest in crypto, and we’ll discuss a few of the best options. If you’re new to cryptocurrency, you might wonder why people buy it in the first place. After all, how could it possibly outperform traditional assets, like gold and silver? And yet, so many people are getting involved in it. What’s the big deal? Investing in cryptocurrency is a good way to make some serious money, but it’s important to do it right.
Investing in cryptocurrency
One of the benefits of cryptocurrency investments is its high returns. The value of each cryptocurrency is determined by the supply and demand. Obviously, the more people that invest in a particular currency, the higher the value of that currency will rise. For instance, if you invested $1,050 in BNB, you would get back $8,070; if you invested the same amount at $3,000, you would get $5,070 in return.
There are many questions surrounding the cryptocurrency market and one of the most common ones is “why crypto?” The recent massive crash has left investors with questions. Volatility worries are making investors turn away from the technology, and this is driving down prices. Several factors are at play, including government pressure and bad press, bad news, and public influence. There are also crackdowns on cryptocurrencies, such as in China, which has recently banned crypto-related services and shut down Bitcoin miners.
While many people think of Bitcoin as a “public” cryptocurrency, Ethereum is a private chain with a decentralized network. It offers an open system for creating and executing Smart Contracts, which are contracts that can describe a voting, auction, or custom payment model. The smart contracts run on Ethereum’s network, so they cannot be altered by third parties. Ethereum also enables the development of decentralized finance. It can be used in applications that are not available in other platforms.
Despite being a relatively new technology, the blockchain-based Ethereum network is already showing great promise as a major player in the digital currency space. Although currently only second to bitcoin in terms of market cap, Ether has the potential to overtake the former in the near future. Ether is made up of subunits called Gwei, wei, and ether, which can be thought of as the fuel for the Ethereum network.
While Bitcoin has been around for many years, the blockchain platform Ripple has made waves in the cryptocurrency world with multiple challenges to its dominance. Ripple’s protocol was developed years before Bitcoin and didn’t link to digital assets until it was well-established. Once Ripple was brought into the world by Jed McCaleb, the competition between the two rapidly accelerated. As a result, a narrative emerged that Bitcoin would soon be rendered obsolete by Ripple.
Litecoin is a crypto with a low LTC/USD exchange rate. As a result, its purchasing power is lower than Bitcoin’s. However, it still commands a fair amount of market cap in the cryptocurrency world. Currently, Litecoin ranks 16th, just below Bitcoin Cash (BCH) and Chainlink (LINK).
Ripple is currently under scrutiny from the U.S. Securities and Exchange Commission (SEC) after the company sold XRP to retail investors in an unregistered securities offering. XRP is not a security, but it may become one if the SEC wins its suit against Ripple. The SEC is not the only authority assessing XRP’s legal status. A recent report published by the Nomura Research Institute argues that XRP is a crypto asset.