The idea of investing your money has always been a popular route that many have decided to go down when they want to earn a bit of extra money. Though you can invest in real estate, some people have instead warmed to the idea of looking into cryptocurrencies and how this can be used as a tool to help diversify your portfolio further.
The great thing about cryptocurrency is that new digital currency, such as Qoin, is getting discovered every day. Their Facebook page highlights the idea that many merchants may be using this currency as a payment method in the future, all the more reason to learn about cryptocurrency now before it’s too late.
This article will help you to understand which digital currencies are the most popular, as well as deciphering which one could be the best one for you to invest in or use going forward. Let’s learn more.
When it comes to cryptocurrency, there is only one place to start and that is with Bitcoin. Bitcoin has often been described as a type of money that is completely virtual. Transactions that are made via Bitcoin can be quick and simple, mainly because it doesn’t need to go through a middleman first, i.e., it doesn’t have a central bank. When people think about the different types of cryptocurrencies that are on the market, Bitcoin is usually the first thing that comes to mind. This is because it is closely associated with the cryptocurrency system and is the most recognizable.
Did you know that there are currently more than 18.5 million Bitcoin tokens in circulation? That is a lot of bitcoin, and there are still plenty more tokens that have yet to be discovered, so this could be very beneficial to your investment portfolio.
Another commonly used cryptocurrency is Litecoin. Litecoin is based on an open-source global payment network that, just like Bitcoin, isn’t controlled by any central authorities such as a bank, credit card company, or other payment processing services. If you’re worried that you won’t be able to get to grips with this form of digital currency, you will be pleased to know that Litecoin isn’t hard to navigate as it works in a very similar way to that of Bitcoin. Charlie Lee, who used to work for Google, decided to improve on the overall design of Bitcoin technology, but with shorter transaction times, lower fees, and more concentrated miners. His hard work seems to have paid off as many people are making the decision to turn to Litecoin when they want to diversify their portfolio with a range of cryptocurrencies.
Next, we have Ripple. Ripple is a blockchain-based digital payment network and protocol and has its own cryptocurrency that can be referred to as XRP. If you decided to use this form of cryptocurrency, it is important to note that these types of transactions use less energy than Bitcoin, as well as getting confirmed in shorter time and cheaper to handle. Anyone who has used Bitcoin before will know that they perform in the opposite way. That being said, Ripple is a great digital currency alternative to Bitcoin, as it has been ranked among the top five most valuable blockchain-based tokens by market capitalization, so this could be good to know if you ever decided to branch away from the more popular Bitcoin.
Ethereum is commonly known to be a blockchain platform that has its own cryptocurrency that can be referred to as Ether or Ethereum, as well as also having its own programming language called Solidity. Put simply, this blockchain network works as a decentralized public ledger for verifying and recording transactions. This means that it doesn’t solely focus on the aspect of digital currency that the other examples listed above do. It instead focuses more on decentralized applications. It ultimately has the aim of returning control of its apps to the original creators rather than being controlled through a middleman, like Apple, for example. This is how Bitcoin and other cryptocurrencies work in that they function without the control of a middleman, so this is a benefit in itself.
Which One Is Right for You?
You will never know which cryptocurrency is the best one for you if you don’t take the time to try them for yourself. Like anything else in life, a lot of trial and error may need to take place before you can find the perfect option for you. Hopefully, the popular cryptocurrencies that have been listed above will help to give you a rough idea of which ones you would like to try and those you wish to avoid. Of course, it ultimately falls to you, so conduct more research if you need to and ask people who have been involved with digital currencies to get their opinion too. This will be a great start to your cryptocurrency journey.