The 5 best cryptocurrencies for first time investors
If you don’t live behind the moon, you will be familiar with Bitcoin. But this digital coin is far from the only one on the crypto market. Litecoin, Ethereum, Ripple and many more are now joining the virtual financial market. The trend of cryptocurrencies is in full swing. Would you also like to jump on the bandwagon and invest? Then you are spoiled for choice, because the number of cryptocurrencies is actually already in the thousands. How should one decide? We make it a little easier for you and introduce you to the five best options for first-time investors.
1. Bitcoin (BTC): Still number 1
With the invention of Bitcoin, a new era began. The first digital currency based on blockchain technology was created. Although there were many successors, Bitcoin is still the best-known cryptocurrency to this day – worldwide. But awareness alone is of course not enough. For first-time investors, Bitcoin is particularly interesting because of the large trading volume. As usual for crypto currencies, the value of Bitcoin is also highly volatile, but if you look at the entire course, you can see a steady increase in value.
2. IOTA / Miota: The Internet of Things
IOTA (the currency itself is called MIOTA) is a network that enables seamless data exchange and thus also financial exchange between the Internet of things and machines.
In contrast to Bitcoin, miners are not required to receive Miota, as the currency is not based on the blockchain. A so-called tangle network guarantees fast and free online transactions that require little computing effort. Above all, the better scalability and higher speed are two factors that make Bitcoin look old and exactly the reason why many investors are buying IOTA
3. Ethereum (ETH): The second largest cryptocurrency
Right after Bitcoin, Ethereum is the second largest and probably also the second best-known cryptocurrency that currently exists. The so-called smart contracts, with which programs can also be executed in the Ethereum network, represent a small but subtle difference.
However, this popular digital currency has a few disadvantages and these are high fees and scalability; It is not uncommon for the network to be overloaded. These problems should be resolved by an update for 2022, which could be a good time to invest now.
4. Cardano (ADA): A newer model
If you don’t keep yourself abreast of the latest developments in the crypto market, you may not have come across Cardano. As a relatively young cryptocurrency, Cardano carries higher risks for first-time investors, but where there are risks, the opportunities are usually not far.
5. Litecoin: In the shadow of Bitcoin
Bitcoin and Litecoin do not differ that much from a technical point of view and yet Litecoin does not even begin to have the reputation of the No. 1 among cryptocurrencies. But maybe this will change soon? Lately the term Litecoin has appeared more often than usual. Whether this is only because the renowned payment service provider Paypal wants to include Litecoin as a means of payment in its repertoire or whether there are other reasons behind it is unclear. What is certain is that attention is growing around this crypto currency, which can be a good sign to invest.