Cryptocurrencies are quite popular right now. It can be quite lucrative if you can tolerate the big swings. While the original cryptos appeared a bit sketchy to traditional investors, many of them are now exchangeable for goods and services with the right vendors. As this form of commercial exchange gets more popular and expands as a method of currency, the cryptos included below will likely continue to grow in value.
What is crypto?
Cryptocurrency is a digital medium of exchange. It’s decentralized, meaning that, as a method of currency, it’s quite volatile. The cryptographic proof is stored in a blockchain, or an open ledger to track transactions among all users.
BTC, known as Bitcoin, is one of the most popular cryptocurrencies available for investors. As far as crypto can be stable, BTC offers stability to investors who are uncertain about the volatility inherent in the crypto market. BTC was the first cryptocurrency available for mining or purchase.
Ethereum is the number one altcoin, or alternative to the original peer to peer payment application. Altcoins also have access to smart contracts for exchange that don’t require human handling.
LTC is proposed to be a great way to start. Because BTC has gained so much in value, buying in may take more cash than you’re ready to plug in. Instead, consider starting small with an initial purchase of Litecoin. LTC continues to grow in value, but like a lot of other cryptos, it’s quite volatile. Buy, hold and don’t put more money into the account than you can tolerate watching rollercoasters up and down.
Bitcoin cash is a hard fork offshoot of Bitcoin. Forks came about as the complexity of the blockchain grew to an unmanageable amount of data. The complexity led to miners choosing to allow off-shoots or forks to stabilize and secure the digital security of the blockchain.
The Bitcoin fork was initially considered to be the beginning of the end of cryptocurrency, but it’s simply one of many forks currently out there. For best results, don’t put all your money into any one cryptocurrency; diversifying will keep you from the jolts of the market.
If you’re ready to put a respectable amount of money into crypto but don’t have the cash for BTC or ETH, Dash is a great start. As of 12/1/20, Dash costs just over $110 per unit. Take care when setting up your crypto wallet; while Dash offers a separate wallet, consider purchasing a Hardware wallet that you can use for Dash and all your other crypto. A Hardware wallet is the most secure way to keep all of your crypto as hack-free as possible.
Start small with crypto. Don’t put more money in your crypto investments than you can accept as a lesson; be ready for a lot of volatility as your balance rises and falls. Over time, your chance for growth is good if you don’t panic and pull your money out if it falls.