Want to invest your capital in cryptocurrency but don’t know much about crypto? Then you are in the right place.
In this article, we will share an overview of cryptocurrencies. We cover its definition, why to invest in it, the three best coins, and a place to trade them.
Let’s get started.
What Is Cryptocurrency?
Cryptocurrency is an encrypted, unregulated digital asset used as a medium of exchange. It doesn’t exist in a physical state (no paper money, no metal coins). It stores a person’s records in an online ledger existing in a robust computerized database to secure end-to-end transaction details.
Cryptocurrencies work via a technology called blockchain. A blockchain is a decentralized system spanning several computers that manage and record transactions.
Why Should You Invest in Cryptocurrencies?
These are reasons why investing in cryptocurrency is worth your attention.
- High return with a risk of losing your money. Cryptocurrencies can provide you with a very high return, unlike other investing methods like real estate or the share market. But the chance of losing your money is also increased because the market fluctuates drastically.
- It could be the next big thing. It is being adopted as a payment method all over the globe, without high transaction fees. Bitcoin is also termed digital gold. With time and more users connecting to it, it can become the next big thing.
- It could help diversify your portfolio. You can diversify your portfolio with cryptos. Investing a small portion of your overall capital in cryptocurrency helps you understand how this market works.
Things to Be Considered Before Investing in Crypto
Keep these points in mind before investing in digital assets.
- Cryptocurrency is speculative. Investing in crypto is highly speculative. Despite stories of millionaire investors, investing at the wrong time can result in swift and severe losses. When someone earns, someone loses.
- Cryptocurrency is volatile. The tremendous volatility of the crypto market is one of the most significant risks of investing in it. Bitcoin, for example, lost about 80% of its value at one point and is still experiencing turbulence regularly.
Cryptocurrency Worth Investing in 2021
- Bitcoin (BTC). This is the first, most well-known, and most valuable cryptocurrency in the world. It is based on a distributed ledger technology that is immutable and time-stamped across all members of a network. It has given a very high return since its launch.
- Ethereum (ETH). Ethereum is the second most popular and valuable crypto in terms of market cap. Ethereum was developed as a platform for creating decentralized smart contracts to make the world more open and fair and less controlled by intermediaries and corporations/monopolies. Ethereum is the most popular and widely used DeFi (Decentralized Finance) blockchain.
- Cardano (ADA). Cardano is one of the best-performing cryptocurrencies on the market. Cardano is developing a platform that may be used in a variety of industries, including education, retail, banking, and healthcare.
Where to Trade Cryptocurrencies
Godex is a cryptocurrency trading platform that allows users to exchange cryptocurrencies swiftly and privately. Moreover, it gives useful information for its users, for example, a crypto exchange comparison.
Now you know basic information about cryptocurrencies, how they work, their potential, and risks. It’s up to you whether to invest in crypto or not. If you are looking forward to entering the crypto market, you can use Godex.io to complete your trade in a short time.