Cryptocurrencies are digital assets that act as a medium of exchange or store or value. Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple are just some of the hundreds and hundreds of cryptocurrencies worth investing.
Cryptos such as Bitcoin utilize blockchain technology to store ownership information and transactions on a digital ledger. Because of this, cryptocurrencies can be transferred nearly instantaneously between wallets at little-to-no cost.
Due to their decentralized nature, cryptocurrencies offer users a degree of pseudo anonymity when making and receiving payments. In the early days, cryptocurrencies were prized by users of the deep web or criminals looking to discreetly shift their funds around.
Unfortunately, this is now not entirely possible as governments have taken an interest in how cryptos are being used. Thus, making anonymous transactions impossible with the exception of a few specialized cryptocurrencies.
Nowadays, cryptocurrencies have more in common with stocks and bonds then they do with the underworld with investors both large and small beginning to see the value of these digital assets.
So if you’re looking to build up your digital portfolio, here’s a selection of the best cryptocurrencies available to help give you a leg up.
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Bitcoin (BTC)
Without a doubt the oldest and most popular cryptocurrency on the market, Bitcoin has been around for the better part of the decade. Widely accepted with the largest market capitalization, no crypto portfolio would be complete without Bitcoins.
In recent months, we’ve seen how BTC prices have gone through the roof as investors scramble to get their hands on “digital gold”.
Being the most valuable cryptocurrency on the market, Bitcoin will form the backbone of your portfolio. With even institutional investors taking a look into Bitcoin, you can rest assured that it’s highly unlikely that the carpet would be pulled from under you.
With rising rates of adoption, there’s no reason why you shouldn’t invest in Bitcoins today.
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Bitcoin Cash (BCH)
Known as BCH, Bitcoin Cash is the spinoff of Bitcoin. From an objective standpoint, Bitcoin Cash is identical to Bitcoin with one key difference: the blocksize.
On the blockchain, BTC blocks are mainly 1mb in size – something which severely inhibits Bitcoin’s ability to perform transactions. In response, the size of BCH blocks was increased to between 8mb and 32mb.
Thus, giving Bitcoin Cash the ability to perform a significantly larger number of transactions at a higher rate. This allows Bitcoin Cash to be more readily used as a medium of exchange when compared to Bitcoin.
While cheaper than Bitcoin, Bitcoin Cash’s ability to perform more transactions makes it a workman type of cryptocurrency.
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Ethereum (ETH)
The silver to Bitcoin’s gold, Ethereum or ETH is the second most popular cryptocurrency on the market. Where Bitcoin is primarily used as an investment vehicle, Ethereum offers a wider range of options for users.
Based on the Ethereum platform, ETH can be used to perform a variety of transactions from transferring funds to setting up smart contracts. This utility is one of the reasons why Singapore has chosen to focus so heavily on ETH and the Ethereum platform.
With the release of Ethereum 2.0 on the horizon, ETH functionality is set to improve with greater stability and enhanced performance. All of which make ETH an excellent addition to any cryptocurrency portfolio.
Possibly, this is a good time for you to read about the differences between Bitcoin and Ethereum.
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Ripple (XRP)
The native cryptocurrency on RippleNet, Ripple also known as XRP is one of the lesser-known cryptocurrencies. However, it is no less important when compared to the big guns on this list.
RippleNet is a network that utilizes blockchain technology to facilitate the receipt and transfer of payments instantaneously. Unlike Bitcoin, Ripple is specially designed to facilitate the transfer of funds. Thus, making it so much more than just an investment.
Companies such as American Express and other financial institutions have chosen to use RippleNet to process and store records of transactions. Lending credence to the validity of the cryptocurrency.
Additionally, Ripple is a relatively affordable investment that can be easily liquidated – ideal for beginners looking to invest in cryptocurrency.
As many would have noticed, our selection of cryptocurrencies is relatively conservative. Given the volatile nature of the crypto market, only the most crypto investors should dive in relatively unknown cryptos.
