In the midst of the global crisis, more and more people are thinking about how to keep their savings and where it is better to invest money so that they do not dissolve due to inflation, but bring a steady income. There are many areas in which you can invest your savings, but not all of them work, and everyone’s efficiency is different. In this article, we decided to consider an option such as cryptocurrency to have a great chance of not burning out.
Since we are talking about the crypt, we first consider ways that do not require special knowledge and skills. This will be about relatively small amounts and well-known tools such as Forex and others.
Which cryptocurrency to invest in
Choosing a good cryptocurrency or token is not like choosing a good promotion. A share gives ownership of a company that makes a profit for its shareholders or at least has the potential to do so. Possession of cryptocurrency means ownership of a digital asset with zero intrinsic value.
Bitcoin
Bitcoin (BTC) is the first and most popular cryptocurrency. Its capitalization is over $ 500 billion. Bitcoin has become a cryptocurrency for traders, but it is more profitable to use it as a long-term investment. Its price is very variable, for example, on May 12 it cost $ 26 thousand, and now – about $ 30 thousand. But in the span of several years, its value is growing.
Ethereum
Ethereum (ETH) is the most popular alternative to bitcoin. Its capitalization is over $ 200 billion. Ethereum’s goal is to create a decentralized set of financial products that anyone in the world can freely access, regardless of nationality, ethnicity or religion.
Litecoin
Litecoin (LTC) was launched in 2011 by Charlie Lee, a former Google engineer. Cryptocurrency has followed in the footsteps of bitcoin, i.e. uses the algorithm to confirm transactions proof of work. But, unlike the first cryptocurrency, Litecoin processes transactions faster. Litecoin has a capitalization of approximately $ 5 billion.
Ripple
Ripple (XRP) is a token that provides low transaction fees and fast transactions. The company that released XRP works with financial institutions. In essence, it is a network of money transfers that works instantly and thus lowers exchange rates. Its technology is used by banks to work faster. Before Ripple, they had to work through intermediaries. Those were expensive, and the operations were carried out for several days. XRP capitalization – more than $ 20 billion
US Dollar Coin
The US Dollar Coin (USDC) is a stablecoin, because its price is tied to the value of the dollar. It is backed by assets in dollars held in separate accounts with US financial institutions. USDC is based on Ethereum and can be used for transactions worldwide. US Dollar Coin capitalization – more than $ 50 billion
Tether
Tether (USDT) is a stablecoin, the price of which is supported by fiat, ie ordinary money. These can be British pounds, US dollars or euros. Hypothetically, the coin retains a value equal to one of these denominations. So the price of Tether has to be predictable. That is why it is chosen by investors who are afraid of the unstable price of cryptocurrencies. USDT capitalization – more than $ 75 billion
Prospect
2022 may be a good year for many crypto investors, as more and more promising projects are emerging in the crypto industry, such as Cent. With the right approach, investing in cryptocurrency is not risky enough. This is due to the fact that the price of coins is determined only by supply and demand and only in some cases supported by real assets. For example, fiat currency, gold, or oil.
But such investments can bring good returns. For example, you can invest a few hundred dollars in coins that rise in price and become a millionaire in a few years. That’s what happened to crypto investor Cooper Tarley.
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