In today’s world, cryptocurrencies rule the financial domain. Starting way back in the year 2009, over a short period, cryptocurrency has made a name for itself. Corporate giants like Microsoft, Tesla, and others are investing billions to acquire as reserve stock. Besides, trading in cryptocurrencies is being carried out all over the globe by companies and individual investors. Now the question, for many newcomers into the crypto market is how many different cryptos can be purchased or invested and how?
According to a recent research report, there are more than 18,000different types of Bitqs floating in the market. However, not all of them are as valuable as you would imagine. However, the fact that there are so many different variants available goes to show how popular the concept has become.
Are you planning to become a crypto trader? If that’s what you have in mind, in that case, there are a couple of different crucial things which you need to be aware of. The most important thing that you need to know is the different types available in cryptocurrencies. The following section might help.
Types of Cryptocurrencies
As mentioned, there are more than 5000 different variants of cryptocurrencies that are available in today’s market. In the following section, you’ll be offered some insight into a few of the popular and important ones.
- Bitcoin: Talking aboutcryptocurrency, the name that can’t be ignored anyhow is bitcoin. Bitcoin today is the most popular and valued of all the different types of cryptocurrencies available. Introduced in the year 2009, bitcoin has come a long way, and today, investments worth billions of dollars are poured into acquiringbitcoins.
- Ethereum: Ether is a cryptocurrency that belongs to the Ethereum network and roughly, the world knows the crypto by the name of Ethereum. This is the open-source blockchain mechanism that enables the developers to design apps and other kinds of cryptocurrencies. After bitcoin, it also happens to hold the second position in the market. Ever since it was introduced in the year 2013, the value of this particular cryptocurrency has risen sharply.
- XRP: This is a crypto currency that belongs to the ripple digital payment network. This particular currency was introduced to carry out digital payments and is known for being a very fast and user-friendly mechanism.
- Tether: This is another very popular cryptocurrency, which essentially is a stablecoin. It also has a good market capitalization and is a great investment option.
So, here the types of cryptocurrencies are that are used by many investors in the market. Apart from these, there are various other variants available some of them are very popular while others are considered to be valueless. Now, if you are newly entering the market of crypto and have thought to invest in it, you need to remember that this market is very volatile. The price of the currencies keeps on rising and falling, which can lead to a disaster if you do not invest wisely.
Small Investments to Begin With
The common myth about cryptocurrency investment is the fact that you can earn millions if not billions. It is not as simple as that. The chances of losing are as high as gaining. Many new investors, jumped into the market with all their savings by believing the myth suffered. Therefore, if you’re new to this domain, then you should invest in a small amount, which could be recovered if sustained a loss. There have been many instances where people ended up losing all they had simply because they fell into the trap of lucrative profit, which can only be achieved if you have sufficient experience and knowledge about the market. So, invest small and have little but more numbers of profits.
Talking about cryptocurrency, bitcoin is undoubtedly the most popular one. If you are willing to invest some of your money in cryptocurrency, in that case, it is bitcoin that you need to go with. It comes with very easy and user-friendly platforms. Besides, it has also gained recognition from many countries and governments. According to the experts, in less than a decade, bitcoin would be accepted as the legal tender for a transaction by many countries in the world. If you already have Bitcoins in your possession, then the right time to sell them would be at the end of this year.