Bitcoin (BTC) is the most popular cryptocurrency out of several thousand that are traded daily. For a long time, Bitcoin has been regarded by many enthusiasts as a ‘safe’ investment. Despite its volatility, Bitcoin has shown a bullish trend since its creation.
But with so many alternatives in the market, one may wonder what the best cryptocurrency to invest in is. Is it Bitcoin? Or is it one of the cryptocurrencies that appeared more recently? To answer this question, it can be useful to take a look at what investors usually do to decide which cryptocurrencies to buy.
Investors usually check the cryptocurrency list price of major exchanges. Generally, exchanges list the cryptocurrencies with the largest market capitalization, trading volume, and liquidity. These indicators provide some hints about which the best cryptocurrencies are. To make things easier for you, below you have a list of the contenders for the best cryptocurrency to invest in:
- Bitcoin (BTC);
- Litecoin (LTC);
- Ethereum (ETH);
- Dogecoin (DOGE).
Let’s briefly review each of these digital coins, after which we’ll be in a better position to pick the best one.
Since January 2019, Bitcoin has dominated the cryptocurrency market. In April 2021, the price of this digital coin surpassed $60,000. Such a price climb represented a market capitalization of $1 trillion. At the time, these values meant that Bitcoin accounted for over 45% of the crypto market. Not bad. But if we consider that its share of the market was 70% at the beginning of the same year, we get a different picture. Other cryptocurrencies are on the rise.
However, Bitcoin is recognized as a hedge against inflation and macroeconomic instability.
Litecoin was one of the first altcoins. It was launched in 2011. Many technical aspects of this cryptocurrency are quite similar to Bitcoin’s. Nevertheless, the extended payment patterns of both digital coins are diverging from each other. That’s why exchanges started offering Litecoin to Bitcoin convert options.
Ethereum is a blockchain platform. Users can exchange Ether, the native cryptocurrency of the said platform. This cryptocurrency is arguably the second most popular after Bitcoin. The Ethereum platform has had significant gains thanks to decentralized finance (DeFi) and other services.
Envisaged as a lighthearted cryptocurrency by its creators, Dogecoin’s price has climbed over 13,000% in 2021. It became the fourth largest cryptocurrency by market capitalization. The apparent support from billionaire entrepreneur Elon Musk has contributed to its quick appreciation.
The Best Cryptocurrency
All the above coins offer great opportunities to make big profits. Which one is the best? It depends on you and the level of risk you can tolerate. Also, it depends on your familiarity with cryptocurrencies. If you are a newcomer, then you are better off investing in Bitcoin for the first time.
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