The cryptocurrency market keeps growing, and as of now, there is tens of thousands of existing cryptocurrency to invest in and trade-in, and the most common investors ask is what would be the best cryptocurrency to invest in. Those cryptocurrencies have their own differences and purposes; it would be best to analyse what can be the best cryptocurrency to invest in based on your needs, wants and preferences. On websites like Bitcoin Era, the brokers can help you choose the best coin that would fit your trading preferences.
Although cryptocurrencies were made to run on the same blockchain network, cryptocurrencies can be classified based on their purpose. Bitcoin was the very first cryptocurrency to be launched way back in 2008 by the pseudonymous Satoshi Nakamoto; they had a goal to remove the middleman in every transaction. All of the cryptocurrency that was made after Bitcoin was considered an alternative coin or Altcoin. It is considered an alternative coin since developers create a cryptocurrency with the functionality and features that are not available in Bitcoin. Seeing the cryptocurrency industry now shows that they achieved more than the goal. The cryptocurrency market actually grew and evolved over time.
What is Altcoin’s role in the cryptocurrency market?
Since alternative coins are developed to have features and functionalities that are not present in Bitcoin, it actually expands the potential of cryptocurrency in the market as a whole. Some of the most popular alternative coins are Ethereum, Litecoin, Cardano and Solana. These days the alternative coins are being competitive and leveraging their features to entice investors.
Ethereum has a technology that allows users to send cryptocurrency to one another. Aside from that, Ethereum also features its very own smart contracts, which generates the trading of assets between two parties. The smart contract makes their network and transactions secure, which adds more value to their native coin ETH. Ethereum also has a network of technology that can facilitate a network of decentralised applications, which is now highly being used for NFT transactions.
Litecoin is one of the first alternative coins to be developed; it was made based on Bitcoin’s decodes. However, Litecoin offers different features, as it tends to be faster on transactions. Litecoin also has an evidently larger supply than Bitcoin. Almost all investors see Bitcoin as an alternative to gold; for most, Litecoin is seen as an alternative to silver.
Solana and Cardano both have the feature to have proof of stake on their blockchain transactions. This is a new mechanism for the blockchain network; it scales up the security and unchangeability of the transactions. Both of the cryptocurrencies also have lower transaction fees than the other token; that is why both are also on the list of top cryptocurrencies to invest in.
On Bitcoin still being on the first spot.
From then until now, Bitcoin is still the most popular cryptocurrency. The fact is that it is the very first to be launched, and it is the house name for all the other cryptocurrencies. It still holds around sixty per cent of the total current market capacity of the whole industry; it also has the highest single value for cryptocurrency, which is around $42,000 as of now.
That is why it is not surprising that most of the new and old investors and traders aim to have Bitcoin in their cryptocurrency profile. Store of value is also one thing to hold on to for Bitcoin; as time passes by, the value continues to rise, especially for the past few years. However, there are still risks in investing with Bitcoin, just like in any other cryptocurrency. It would be expensive for one to have Bitcoin in their cryptocurrency profile; nevertheless, with the right strategy, it is not impossible to have it. Brokers on the bitcoinera.io website can give you the right tips until you reach your own goals for the crypto investment.
Which should you invest in?
The greatest advice from traders is that one must diversify their cryptocurrency profile. This is where the strategies and analyses come in; of course, you should have one that is from your preference, the one that you forecasted and you think would make a profit for you. A stable coin should be present in your profile as well as this could save your investment from drastic price changes, which happens from time to time. Lastly, it is every investor or trader’s goal to have Bitcoin in their profile since it has the highest profitability in the whole market.