If you just got introduced to cryptocurrencies and thought that the crypto world didn’t extend much beyond Bitcoin, you were probably taken aback by the sheer number of coins on the market. New coins are being introduced on a daily basis, and there are now over 2000 different coins currently in circulation. Luckily, only a few of them are making a difference and have a chance of surviving. In this article, we’re going to give you what we think are the top four most important cryptocurrencies to keep an eye on and what their impact could be in the future.
Bitcoin – the one that started it all. Bitcoin is the gold standard when it comes to cryptocurrencies, and wherever Bitcoin goes, crypto goes. Bitcoin was the first coin of its genre to use the Blockchain, a decentralized ledger system that allows transactions to be verified through an independent network of nodes, and use it to conduct everyday transactions. However, while Bitcoin’s goal was noble, it is still far from perfect and many have addressed concerns about its scalability, transaction fees and speed. But it still remains the top coin in the industry and should continue to be for a long time to come.
- Create a trading schedule, as Bitcoin has very long market hours which average at 24 hours a day.
- Research the best platforms to buy Bitcoin
- Use a Bitcoin wallet which are designed to keep your assets secure. The threat of scammers is very large and you don’t want your Bitcoin to get into the wrong hands.
While many might think that Ether is just another Bitcoin competitor, it’s much more complex than that. While Ethereum also uses the Blockchain, it is essentially a platform that allows developers to create decentralized apps that will run on its network. These apps are fueled by Ether, which is a coin that is traded on the cryptocurrency markets. Out of all cryptocurrencies, Ethereum seems to have one of the most solid use cases.
- You must use a digital wallet to convert Ethereum
- Develop a system and update it regularly, as the market is always evolving
- This option is ideal for beginners
If Bitcoin is the coin of the people, Ripple is the total opposite. Ripple is referred to by many insiders as the “anti-crypto” due to its highly centralized nature. And it was created mainly for banks and legacy payment systems. But Ripple is not the name of the token per se, but the name of the network on which transactions are performed. XRP is the coin, and has the specificity of being able to handle a much higher number of transactions than Bitcoin, and at a much higher rate. It’s largely viewed as the crypto currency with the most tangible use case of them all.
- Decide whether you want to use flat money or other cryptocurrencies
- Ripple is very cheap, so ensure you keep track of your expenditure to ensure you aren’t throwing too much at it without realizing
If Bitcoin is viewed as the gold of the cryptoverse, Litecoin is like silver. Contrary to Bitcoin, which seeks to act as a store of value, Litecoin was created for smaller, faster and more frequent transactions. While the rate of adoption hasn’t been as high as expected, it is still much more performant than Bitcoin and is also used as a gateway to other cryptocurrencies.
- Be diligent about how much you invest in Litecoin. It’s still not as common as Bitcoin.
- Read up on the differences between Litecoin and Bitcoin so that you know which one is best for you.
How to Trade Cryptocurrencies
Until lately, the only way to trade cryptocurrencies on the market was either directly between users or through exchanges. But as cryptocurrencies started gaining more legitimacy, traditional Forex brokers have started offering cryptos as well. Since these traders are already established, they are deemed a safer option by many who have been slighted by less reputable exchanges. If you want to know which brokers do offer cryptos, you can check this guide on forex brokers with cryptocurrency. Choosing a broker is a very important task so you need to ensure you’re well informed before settling with one. InvestinGoal have written a comparative list of 10 brokers that offer cryptocurrencies which should help make your decision a little easier.
Cryptocurrency seems to be the wave of the future, and you should understand as much as you can about them if you’re thinking of investing. Make sure that you do your research and go with a reputable broker if you want to make sure that your assets remain safe at all times.