The cryptocurrency market is one of the most volatile and unpredictable in existence. You might have heard about how much money you could make if you got into bitcoin at the right time, but that doesn’t mean it’s a good investment strategy. With so many different cryptocurrencies out there, each with their own unique characteristics and goals, it can be hard to know which ones are worth investing in—and which ones aren’t.
That’s why we’ve put together this list of our five favorite cryptocurrencies for investors who want to try their hand at trading this new asset class:
Bitcoin
Bitcoin is the most popular cryptocurrency, as well as the oldest and most valuable. It was created by Satoshi Nakamoto in 2009 and has since become one of the most valuable digital assets in the world. Bitcoin has been named as a reference currency for other cryptocurrencies, as it is currently considered to be one of the most stable cryptocurrencies on today’s market
- One of the most important differences between Bitcoin and other cryptocurrencies is its limited supply. There will only ever be 21 million bitcoins mined into existence. In comparison, there are over 2,000 different types of coins available—and those are just ones that we know about!
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
Ethereum is a platform for sharing information that cannot be censored and is completely transparent. Ethereum was invented by Vitalik Buterin in 2013 and launched to the public in 2015 with the issuance of ether (ETH) tokens on the Ethereum blockchain network.
In September 2022, Ethereum will merge to form Ethereum 2.0, after which the Ethereum blockchain will focus on sharding and Layer 2 blockchains. The energy costs of Ethereum should fall dramatically. There will be more incentive to stake Ethereum if the blockchain remains active.
Making it an excellent investment opportunity.
Dash
Dash is a fork of Bitcoin that focuses on privacy and speed, which makes it one of the best cryptocurrencies to invest in. The Dash network supports instant transactions and private transactions that are untraceable. It’s also used as a payment system for e-commerce websites like Amazon, who accept Dash as a form of payment through their service called Coinfirm. This means you can buy things online with Dash!
DASH has been around since 2014, but its value has only recently skyrocketed from $1 per coin to more than $100 per coin. Indeed, DASH is one of the most popular altcoins available today, with a price of $47 at the time of writing.
Neo
Neo is a platform that allows users to create smart contracts and even digital assets. It’s often referred to as the Chinese Ethereum, but it has a lot of potential for growth once more people start using it.
It’s currently ranked 64th in terms of market capitalization at $650 million. If you’re looking for a good cryptocurrency to invest in, Neo might be worth considering because there are only 100 million tokens available and more people are likely to adopt it in the future.
Zcash
Zcash is a privacy coin that was created in 2016. It’s the first open, permissionless cryptocurrency that can fully protect the privacy of transactions using zero-knowledge proof construction called zk-SNARKs.
Zcash uses cryptography to shield your information from prying eyes and encrypt your data so it’s easy for you to send and spend money without anyone knowing how much you have or where it came from.
Zcash is not owned or controlled by any single entity which makes this network more fair than other cryptocurrencies like Bitcoin where only 21 million coins will ever be available for mining.
This means Zcash could potentially be worth much more than other cryptocurrencies as it grows in popularity with investors looking for better returns on their investments (ROI).
The cryptocurrency market is highly volatile and unpredictable.
The cryptocurrency market is highly volatile and unpredictable. The price of cryptocurrencies can change rapidly, which could result in significant losses that are difficult to predict.
Cryptocurrencies are a new asset class, so there’s no historical evidence to guide your investment decisions. However, the cryptocurrency market doesn’t seem to be correlated with the stock market or other traditional investments—it’s an entirely separate entity that should be analyzed separately from more traditional assets.