While the company has made strides in increasing its security, loopholes are always a risk with any cryptocurrency investment. This can lead to transactions taking longer to process when the network is overloaded.Ī hack in 2016 led to more than $60 million Ether dollars lost because of a flaw in the Ethereum wallet. While Ethereum utilizes blockchain technology, it only has one “lane” for conducting transactions. While Ethereum is far behind Bitcoin in value, it’s also far ahead of the other competitors.Įven though it came out years after some other cryptocurrencies, it has far exceeded its place in the market because of its unique technology. It’s also a network that allows developers to create their own cryptocurrency utilizing the Ethereum network. Ethereum (ETH)Įthereum is different from Bitcoin because it isn’t only a cryptocurrency. For investors who want to avoid buying partial shares, this is a negative. With a single share costing more than $50,000, most people can’t afford to buy whole shares of the stock. Otherwise, as long as you keep in mind that cryptocurrency is a smart long-term investment, these fluctuations shouldn’t be too concerning.Īnother reason to reconsider investing in Bitcoin is its price. If wild fluctuations like these make you nervous, you may want to avoid Bitcoin. You may see the price go up or down thousands of dollars during any month. The value of Bitcoin tends to fluctuate a lot. Plus, the larger banks are beginning to incorporate Bitcoin transactions into their offerings, too. Visa transacts with Bitcoin, and Tesla CEO Elon Musk recently invested $1.5 billion in it. Many businesses already accept Bitcoin as payment, which makes this cryptocurrency a smart investment. Even with thousands of other cryptocurrencies on the market, Bitcoin still represents 40% of the cryptocurrency market cap. It’s easy to see why it’s the leader, with a price, market cap and volume that’s much higher than any other investment options. If you notice that the cryptocurrency is gaining traction and becoming more valuable with time, that’s even better.īitcoin has been around for the longest of any cryptocurrency. How has the company performed during its years in business? If you see stability in prices, that’s a good sign. How long has the cryptocurrency been around? New cryptocurrencies aren’t immediately ruled out, but having historical data for comparison helps you see how a company has performed up until now. In choosing the top 10 picks, the following factors were considered. Run a quick online search and you’ll find dozens of recommendations for how to invest in cryptocurrency. These are the top 10 cryptocurrencies that are most worthy of investment in 2021. However, investing in cryptocurrency can be risky if you don’t know where to begin. While you can use cryptocurrency to make purchases, most people treat it as a long-term investment. There are currently more than 5,000 cryptocurrencies on the market. As digital money continues to gain traction on Wall Street, more and more options become available. Instead, it’s based on blockchain technology, with Bitcoin being the most popular one. Cryptocurrency is digital money that isn’t managed by a central system like a government.
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