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To compare investing in Bitcoin to a rollercoaster ride might be a bit of an understatement.

It&#;s certainly been a bumpy ride for investors over the last 12 months. Our article from a year ago perfectly demonstrates how quickly things can change in the world of crypto.

At the time, Bitcoin had reached a then-record high of nearly £31, Since then, prices have spiked drastically in both directions.

So, should you include Bitcoin in your investment strategy? In this article, we find out. 

We take a look at the current state of Bitcoin and what you need to know about this often unpredictable asset as an investor.  

Let&#;s start with a quick refresher on Bitcoin and how it works.

What is Bitcoin?

Bitcoin is one of many digital currencies, often referred to as a cryptocurrency.

Inthere were around 66 different digital coins worldwide, according to data from Statista. 

Fast forward to Februarythere is an estimated 10, cryptocurrencies in existence. That may sound like a lot, but the top 20 coins make up roughly 90% of the market.

Bitcoin was the first alternative currency of its kind, launching in It&#;s also the one that has become synonymous with the term cryptocurrency.

Unlike a so-called &#;real currency&#;, Bitcoin is a digital version of cash. Although you often see Bitcoins in photos, they are technically worthless as the currency is purely digital.

Another trait that separates it from physical currencies is that it is decentralised. In other words, it is not controlled by central banks or the government.

When you use a traditional payment method such as a debit card or credit card, the payment is facilitated by banks. A virtual currency such as Bitcoin essentially cuts out the middle man, allowing you to buy and sell with people directly.

There are three ways to get Bitcoin;

• buying some on a cryptocurrency exchange,
• Belling something and receiving payment in Bitcoin
• Creating/mining it

The latter is one of the main things that gives Bitcoin its value. 

For new Bitcoin to enter circulation, they first have to be mined. Mining is a complex process that involves solving mathematical puzzles, and in return, the miner receives coins.

Unlike other forms of digital currency, there is only a finite amount of Bitcoin available &#; 21 million, to be exact. 

Like other commodities such as gold, once they are all found, no more will ever enter circulation. This scarcity plays a part in the value of the coin. 

How does it work?

Bitcoin is bought on crypto exchanges and then added to a digital wallet.

Payments are essentially P2P exchanges. You transfer funds from your digital wallet to someone else&#;s. Understanding how it works as a payment option is relatively straightforward. The technology that allows it to work is a little more complex.

Bitcoin payments are made possible through the application of blockchain technology.

The blockchain is essentially a list that records transactions, with each transaction forming a new bitcoin investering hit in the chain. Think of it as a digital ledge where each entry is added to the chain in chronological order.

It records information such as dates, value, the buyer and the seller. Because anyone can access the blockchain, it makes verifying a transaction simple.

Such an important document that anyone can access and edit may sound risky. However, bitcoin investing 2022 20, the process involved to add a block to the chain actually makes it very secure.

Although Bitcoin is a currency that allows you to buy real items, most people see it more as an investment opportunity. With the value of one Bitcoin reaching an eye-watering amount in recent years, it&#;s easy to see why investors are keen to add a crypto asset to their portfolio.

How much is Bitcoin worth?

The answer to this question ages about as well as milk on a summer&#;s day.

The current market price at the time of writing is just under £28, ($37,) per coin, according to Coindesk. However, long-term investors in Bitcoin will be well aware of how quickly things can change in the world of crypto.

To illustrate that point, let&#;s look at Bitcoin price from its infancy to now.

Ina year after it launched, one Bitcoin would set you back around £ ($). Yes, you read that correctly, five pence. By Novemberit had reached absurd prices, trading for a record high of nearly £51, ($67,) per coin.

The excitement for investors didn&#;t last long. By Februarythe price plummeted to bitcoin investing 2022 20 under £26, ($35,), bitcoin investing 2022 20. In the space of three months, investors in the coin saw the value of their digital assets drop by 50%.

The chart below shows just how erratic the price of Bitcoin investing 2022 20 is.

bitcoin investing 2022 20 has the Bitcoin price dropped?

There are a lot of factors that can affect cryptocurrency investments and their bitcoin investing 2022 20. A simple tweet by Elon Musk can either send the price soaring or cause it to tumble.

One of the main things linked to the recent decline is a move by the U.S. to regulate digital assets. Remember, crypto is just like any other asset of the stock market. If there is new regulation and uncertainty, the markets react to it in the short term.

It&#;s also worth noting that Bitcoin and the broader crypto market tend to follow similar trends we see bitcoin investition site the stock market. So, when there is a fall in the financial markets, crypto also drops.

The Dow Jones, S&P and Nasdaq all took a hit at the start of the year before rebounding. We are now seeing a similar trend with Bitcoin. 

While it plummeted to just under £26, a coin in January, it had picked up by February, peaking at nearly £33,

Cryptocurrency risks: what you need to know before you invest

If it wasn&#;t clear already, the biggest risk to be aware of is just how volatile crypto is. 

Another concern is the potential for hacks. A report by Chainalysis found that roughly $ billion (£ billion) of cryptocurrency was stolen inan increase of % from

There are measures people use to protect their coins, bitcoin investing 2022 20, such as using a cold wallet, bitcoin investing 2022 20. Otherwise known as a hardware wallet or cold storage, a cold wallet allows you to take your coins offline.

They are similar to using a USB stick and can help protect your crypto from online attacks. However, there are also drawbacks to using this method.

Is there an alternative currency?

As we mentioned at the top of this article, thousands of coins exist on the crypto market. 

When it comes to crypto investing, research is essential. Some coins are here one minute and gone the next.

According to Forbes, Bitcoin is by far the biggest based on the total value of the coins in circulation. Still, there are alternatives to consider, such as: 

• Bitcoin (BTC) &#; Market cap: Over $ billion
• Ethereum (ETH) &#; Market cap: Over $ billion
• Tether (USDT) &#; Market cap: Over $78 billion
• Binance Coin (BNB) &#; Market cap: Over $63 billion
• U.S. Dollar Coin (USDC) &#; Market cap: Over $50 billion

Building a diverse investment portfolio

There is a level of risk tied to any investment, and crypto is no different. However, cryptocurrency-related investments bitcoin investing 2022 20 not be for everyone depending on their risk tolerance.

Whatever your investment strategy, building a diverse investment portfolio is essential. With the right mix of assets, crypto can certainly help to form part of a profitable portfolio.

Speaking with an expert can help you put together a plan that gives you the best possible chance of reaching your financial goals.

Holborn Assets has worked with clients to build successful portfolios tailored to their needs and goals for more than two decades.

To find out how we can help you, contact us using the form below.

Decided Bitcoin is a good investment? You can buy BTC on eToro and Exodus.

A collective insanity has sprouted around bitcoin over the last decade. It&#;s hard to predict whether bitcoin investing 2022 20 cryptocurrency will become the global reserve currency or a store of value as widely accepted as gold. The thrill of riches or ruin leaves some investors wary, but others want to chase the chance for massive profits from investing in bitcoin. Bitcoin is certainly a revolutionary technology, and it&#;s much less risky in than it was in After becoming legal tender in El Salvador inother countries will look to copy this move to attract innovation, while others may ban it entirely in bitcoin investing 2022 20 to save their fiat currency. Bitcoin has taken center stage in the global geopolitical climate, and looks like it may be the year of massive adoption.

Start with our guide to learn more and make your own judgment if bitcoin is a good investment for you.

Simply Put: Is Investing in Bitcoin Risky?

Similar to any speculative investment, bitcoin investing 2022 20, buying Bitcoin obviously carries risk. Since its inception, Bitcoin was the 1st digital asset to beget the current ecosystem of cryptos. For bitcoin investing 2022 20 a while, it grew an underground following of investors who saw its future as a possible replacement to the physical monetary system. Now Bitcoin has become a household name as institutions and governments develop ways to serve their customers growing demand for exposure.

Similar to how the internet was once a speculative investment, Bitcoin has received similar criticism. In reality, Bitcoin‘s current adoption rate outpaces that of the internet&#;s inand millions of people now own Bitcoin.

InEl Salvador became the 1st country in the world to make Bitcoin a legal tender; Paraguay and other countries look to follow suit. El Salvador is also the first and only country to have Bitcoin in its treasury. As of earlyEl Salvador has 1, bitcoin. President Nayib Bukele has not been shy about announcing his purchases on Twitter.

As the traditional finance world realizes Bitcoin&#;s potential for disruption, they must choose either to adopt cryptocurrencies or face irrelevance. The personal decision to invest in bitcoin comes down to your appetite for risk and your perspective on the future of humanity, bitcoin investing 2022 20. For example, Russia has stated they are looking into cryptocurrencies to lower their dependence on the US dollar. Bitcoin has the potential to disrupt the US Dollar in a massive way, and it is simply too big to be ignored at this point.

The main reason a traditional investor may want exposure to Bitcoin is to hedge against inflation and potentially the collapse of the fiat-based economy. Bitcoin&#;s volatility is a concern to may investors, however volatility is expected to decrease forever as institutions and governments enter the market with long-term interest.

Where to Invest in Bitcoin

Bitcoin is available from a multitude of centralized cryptocurrency exchanges. The safest exchanges are U.S. based, which also means you&#;ll need to comply with the SEC&#;s know your customer (KYC) guidelines. For tax purposes, bitcoin investing 2022 20, making an exchange account will require inputting your personal information including your address and social security number. Once you&#;ve got this handy, you&#;re ready to get started.

Here are the steps to invest in bitcoin:

1. Open an account with Coinbase or another exchange from the list below.
2. Connect a bank account and deposit funds into your exchange wallet.
3. Buy Bitcoin (BTC).
4. Buy a wallet (optional).

1. eToro

Trade popular cryptocurrencies, explore professionally managed portfolios and connect with traders. eToro currently supports the purchase and sale of several popular cryptocurrencies. Check out the list of some of the more popular assets available to trade on eToro.

Overall Rating

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get started securely through eToro&#;s website

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Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For

• U.S. based cryptocurrency traders
• Investors looking to CopyTrade other traders
• Simple user interface

Pros

• Several major cryptocurrencies and altcoins
• Expansive network of social trading features
• Large client base for new traders to imitate

2. Coinbase

Coinbase makes it safe and simple for you to buy, sell and hold bitcoin. You can buy a portion of bitcoin with a $0 account minimum.

Pay for purchases conveniently using your debit card or by connecting your bank account. Owning bitcoin on this brokerage is as simple as creating an account, verifying your identity and buying your cryptos. Also, Coinbase has a program called Coinbase Earn that pays you to learn about cryptocurrencies. Coinbase Earn is a great way to add crypto to your portfolio without actually needing to invest your own money.

Take control of your bitcoin investment everywhere you go through the Coinbase mobile app. The brokerage allows you to hold onto your bitcoin, convert it into another crypto, spend it on expenses and transfer it to anyone, anywhere in the world.

Bitcoin price

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Regardless of your perspective on blockchain-centered projects, venture capitalists appear to have made up their minds about the sector: Investments into crypto-themed companies &#; the web3 space, as its supporters call it &#; set records inrecords that could be beaten in if early data indicates bitcoin investing 2022 20 capital will flow this year.

The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.

Data from a new venture capital fund and recent funding rounds underscore the pace of deal flow the crypto market has ahead of it, indicating that bets placed on blockchain-related startups will continue despite some wobbly indicators from the decentralized market.

That there are believers in crypto in the market is not a surprise, bitcoin investing 2022 20. The pace of investing may prove to be. For example, early PitchBook data relating to startups it categorizes in the &#;Cryptocurrency/Blockchain&#; sector raised around as much this January as all startups in Africa did last year &#; despite the fact that the African startup investment market is accelerating, as TechCrunch has noted.

This morning, let&#;s take a look at a few data points showing how rapidly the current pace of investment into crypto-focused startups is shaping up in and cast a quick glance at issues in the blockchain market that could, but are not, giving investors pause.

To the moon

The recent fundraise by FTX drew a host of headlines. Any time a where to invest now in stocks company scales its private-market valuation to the range of dozens of billions, it&#;s hard to ignore, bitcoin investing 2022 20. That FTX raised $ million for its main business &#; at a $32 billion valuation &#; less than a week after the company raised $ million for its U.S.-based bitcoin investing 2022 20 at an $8 billion valuation did not garner the shock that it should. That&#;s a simply tectonic sum of cash, and at prices that indicate that FTX sold a total of around 2% of the shares in both companies, bitcoin investing 2022 20, or $ million worth of investment into $40 billion worth of equity value.

But that&#;s not the only recent news event that underscores how big the crypto bets may prove in Alexis Ohanian’s Seven Seven Six venture firm just bitcoin investing 2022 20 $ million in two funds, that, per The Wall Street Journal, it will &#;invest primarily in crypto startups.&#;

Bitcoin has not only been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network, but has also become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spinoffs.

What Are Cryptocurrencies?

Before we take a closer look at some of these alternatives to Bitcoin (BTC), let’s step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money that takes the form of tokens or “coins.” Though some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.

The “crypto” in cryptocurrencies refers to complicated cryptography that allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important “crypto” feature is a common commitment to decentralization; cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance (often, although not always, through a process called mining) and other controls.

Cryptocurrencies are almost always designed to be free from government manipulation and control—although, as they have grown more popular, bitcoin investing 2022 20, this foundational aspect of the industry has come bitcoin investing 2022 20 fire. The cryptocurrencies modeled after Bitcoin are collectively called altcoins, and in some cases, shitcoins, and have often tried to present themselves as modified or improved versions of Bitcoin. Though some of these currencies may have some impressive features bitcoin investing 2022 20 Bitcoin does not, matching the level of security that Bitcoin’s networks achieve largely has yet to be seen by an altcoin.

Below, we’ll examine some of the most important digital currencies other than Bitcoin. First, though, a caveat: It is impossible for a list like this to be entirely comprehensive. One reason for this is the fact that there are over 18, cryptocurrencies in existence as of March Though many of these cryptos have little to no following or trading volume, some enjoy immense popularity among dedicated communities of backers and investors.

Beyond that, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow. Though Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than BTC. It’s common, for instance, for analysts bitcoin investing 2022 20 attribute a great deal of importance to ranking coins relative to one another in terms of market capitalization. We’ve factored this into our consideration, but there bitcoin investment uk act other reasons why a digital token may be included in the list.

Types of Altcoins

Cryptocurrencies

Cryptocurrencies are intended for payments, transmitting value (akin to digital money) across a decentralized network of users. Many altcoins (i.e., those that are not Bitcoin or sometimes Ethereum) are classified in this way and may sometimes be best tech companies to invest in right now value tokens, bitcoin investing 2022 20.

Tokens

There are also blockchain-based tokens that are meant to serve a different purpose from that of money. One example could be a token issued as part of an initial coin offering (ICO) that represents a stake in a blockchain or decentralized finance (DeFi) project. If the tokens are linked to the value of the company or project, they can be called security tokens (as in securities like stocks, not safety).

Other tokens have a particular use case or function. Examples include Storj tokens, which allow people to share files across a decentralized network, or Namecoin, which provides decentralized Domain Name System (DNS) service for Internet addresses. These are known as utility tokens.

Today, while many users of crypto understand and appreciate these differences, traders and lay investors may not notice the difference because all categories of token tend to trade on crypto exchanges in the same way.

1. Ethereum (ETH)

The first Bitcoin alternative on our list, Ethereum (ETH), is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party, bitcoin investing 2022 20. The goal behind Ethereum is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This aspect makes the implications for those in some countries more compelling because those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products. 

The applications on Ethereum are run on ether, its platform-specific cryptographic token. Ether (ETH) is like a vehicle for moving around on the Ethereum platform and is sought mostly by developers looking to develop and run applications inside Ethereum, or now, by investors looking to make purchases of other digital currencies using ether. Ether, launched inis currently the second-largest digital currency by market capitalization after Bitcoin, although it lags behind the dominant cryptocurrency by a significant margin. Trading at around $2, per ETH as of March 14,undistributed net investment income calculation market cap is less than half of bitcoin's.

InEthereum launched a presale for ether, bitcoin investing 2022 20, which received an overwhelming response; this helped to usher in the age of the ICO. According to Ethereum, it can be used to “codify, decentralize, secure and trade just about bitcoin investing 2022 20 Following the attack on the decentralized autonomous organization (DAO) inEthereum was split into Ethereum (ETH) and Ethereum Classic (ETC).

In DecemberEthereum transitioned its consensus algorithm from proof of work (PoW) to proof-of-stake bitcoin investing 2022 20. This move is intended to allow Ethereum’s network to run itself with far less energy and improved transaction speed, as well as to make for a more deflationary economic environment, bitcoin investing 2022 20. PoS allows network participants to “stake” their ether to the network. This process helps to secure the network and process the transactions that bitcoin investing 2022 20. Those who do this are rewarded with ether, similarly to how an interest account invest now or wait july 2022. This is an alternative to Bitcoin’s PoW mechanism, bitcoin investing 2022 20 which miners receive more BTCs for processing transactions.

2. Litecoin (LTC)

Litecoin (LTC), launched inwas among the first cryptocurrencies to follow in the footsteps of Bitcoin investing 2022 20 and has often been referred to as “silver to Bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate and former Google engineer.

Litecoin is based on bitcoin investing 2022 20 open-source global payment network that is not controlled by any central authority and uses scrypt as a PoW, which can be decoded with the help of consumer-grade central processing units (CPUs). Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and thus offers a faster transaction confirmation time.

Other than developers, there are bitcoin futures exchange list growing number of merchants that accept Litecoin. As of March 14,Litecoin has a market capitalization of $ billion and a per token value of around $, making it the 21st-largest cryptocurrency in the world.

3. Cardano (ADA)

Cardano (ADA) is an “Ouroboros proof-of-stake” cryptocurrency that was created with a research-based approach by engineers, mathematicians, and cryptography experts, bitcoin investing 2022 20. The project was co-founded by Charles Bitcoin investing 2022 20, one of the five initial founding members of Ethereum. After having some disagreements with the direction that Ethereum was taking, he left and later helped to create Cardano.

The team behind Cardano created its blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project smart money invest 2022 written more than papers on blockchain technology across a range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano seems to stand out among its PoS peers as well as other large cryptocurrencies. Cardano has also been dubbed the “Ethereum killer” because its blockchain is said to be capable of more. That said, Cardano is still in its early stages. Though it has beaten Ethereum to the PoS consensus model, it still has a long way to go in terms of DeFi applications. 

Cardano aims to be the world’s financial operating system by establishing DeFi products similar to Ethereum's as well as providing solutions for chain interoperability, bitcoin investing 2022 20, voter fraud, and legal contract tracing, among other things. As of March 14, bitcoin investing 2022 20,Cardano has the eighth-largest market capitalization at $ billion, and one ADA trades for around $

4. Polkadot (DOT)

Polkadot (DOT) is a unique PoS cryptocurrency aimed at delivering interoperability among other blockchains. Its protocol is designed to connect permissioned and permissionless blockchains as well as oracles to allow systems to work together under one roof. Polkadot’s core component is its relay chain, which allows the interoperability of varying networks. It also allows for parachains, or parallel blockchains with their own native tokens for specific-use cases.

Where Polkadot differs from Ethereum is bitcoin investing 2022 20 rather than creating just dApps on Polkadot, bitcoin investing 2022 20, developers can create their own blockchain while also using the security that Polkadot’s chain already has. With Ethereum, developers can create new blockchains but need to create their own security measures, which can leave new and smaller projects open to attack because the larger a blockchain, the more security it has. This concept in Polkadot is known as bitcoin investing 2022 20 security.  bitcoin investing 2022 20 Polkadot was created by Gavin Bitcoin investing 2022 20, another member of the core founders of the Ethereum project who had differing opinions about the project’s future. As of March 14,Polkadot has a market capitalization of roughly $ billion, and one DOT trades for $

5. Bitcoin Cash (BCH)

Bitcoin Cash BCH holds an important place in the history of altcoins because it is one of the earliest and most successful hard forks of the original Bitcoin. In the cryptocurrency world, a fork takes place as the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be made due to general consensus; the mechanism for this process varies according to the particular cryptocurrency.

When different factions can’t agree, sometimes the digital currency is split, with the original chain remaining true to its original code and the new chain beginning life as a new version of bitcoin investing 2022 20 prior coin, complete with changes to its code. 

BCH began its life in August as a result of one of these splits. The debate that led to the creation of BCH had to do with the issue of scalability; the Bitcoin network has a limit on the bitcoin investing 2022 20 of blocks: 1 megabyte (MB). BCH increases the block size from 1MB to 8MBs, with the idea being that larger blocks can hold more transactions within them, and the transaction speed would therefore increase. It also makes other changes, including the removal of the Segregated Witness protocol that impacts block space.

As of March 14,bitcoin investing 2022 20, BCH has a market capitalization of around $ billion and a value per token of $

6, bitcoin investing 2022 20. Stellar (XLM)

Stellar (XLM) is an open blockchain network designed to provide bitcoin investing 2022 20 bitcoin investors forum orange county by connecting financial institutions for the purpose of large transactions. Huge transactions between banks and investment firms—typically taking several days, involving a number of intermediaries, and costing a good deal of money—can now be make money fake keygen nearly instantaneously with no intermediaries and cost little to nothing for those making the transaction.

Though Stellar has positioned itself as an enterprise blockchain for institutional transactions, it is still an open blockchain that anyone can use. The system allows for money earning ways in sri lanka transactions among any currency. Stellar’s native currency is Lumens (XLM). The network requires users to hold Lumens to be able to transact on the network.

Stellar was founded by Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple protocol. He eventually left his role with Ripple and went on to co-found the Stellar Development Foundation. Stellar Lumens have a market capitalization of about $ billion and are valued at around 18 cents as of March 14, bitcoin investing 2022 20,

7. Dogecoin (DOGE)

Dogecoin (DOGE), seen by some as the original “memecoin,” caused a stir in as the price of the coin skyrocketed. The coin, which uses an image of the Shiba Inu as its avatar, is accepted as a form of payment by some major companies, including the Dallas Mavericks, Kronos, and—perhaps most notably—SpaceX, an American aerospace manufacturer owned by Elon Musk.

Dogecoin was created by two software engineers, Billy Markus and Jackson Palmer, in Markus and Palmer reportedly created the coin as a joke, commenting on the wild speculation of the cryptocurrency market.

The price of DOGE hit an all-time high of approximately cents during the week when Musk was scheduled to appear on Saturday Night Live. As of March 14,Dogecoin’s market capitalization is $ billion and one DOGE is valued at around 11 cents, making it the 13th-largest cryptocurrency.

8. Binance Coin (BNB)

Binance Coin (BNB) is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalization. Those who use the token as a means of payment for the exchange can trade at a shorten urls and earn money.

Binance Coin’s blockchain is also the platform on which Binance’s decentralized exchange operates. The Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes.  

Binance Coin was initially an ERC token that operated on the Ethereum blockchain. It eventually had its own mainnet launch. The network uses a PoS consensus model. As of March 14,Binance Coin has a $ billion market capitalization, with one BNB valued at $

9. Tether (USDT)

Tether (USDT) was one of the first and most popular of a group of so-called stablecoins—cryptocurrencies that aim to peg their market value to a currency or other external reference point to reduce volatility, bitcoin investing 2022 20. Because most digital currencies, even major ones like Bitcoin, have experienced frequent periods of dramatic volatility, Tether and other stablecoins attempt to smooth out price fluctuations to attract users who may otherwise be cautious. Tether’s price is tied directly to the price of the U.S. dollar. The system allows users to more easily make transfers from other cryptocurrencies bitcoin investing 2022 20 to U.S. dollars in a more timely manner than actually converting to normal currency. 

Launched inTether describes itself as “a blockchain-enabled platformto make it easier to use fiat currency digitally.” Effectively, this cryptocurrency allows individuals to utilize a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity often associated with digital currencies.

As of March 14, bitcoin investing 2022 20,Tether is the third-largest cryptocurrency by market capitalization, bitcoin investing 2022 20, with a market cap of $ billion and a per-token value of (you guessed it!) $1.

Monero (XMR)

Monero XMR is a secure, private, and untraceable currency. This open-source cryptocurrency was launched in April and soon garnered great interest among the cryptography community and its enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven.

Monero has launched with a strong focus on decentralization and scalability, and it enables complete privacy by using a special technique called “ring signatures.” With this technique, a group of cryptographic signatures appears, including at least one real participant, but the bitcoin investing 2022 20 one cannot be isolated because they all appear valid.

Because of these exceptional security mechanisms, Monero has developed something of an unsavory reputation—it has been linked to criminal operations around the world. Though this is a prime candidate for making criminal transactions anonymously, bitcoin investing 2022 20, the privacy inherent in Monero is also helpful to dissidents of oppressive regimes around the world.

As of March 14,Monero has a market capitalization of $ billion and a per-token value of $

Honorable Mentions

We were only able to list 10 altcoins above, but there are many other important cryptocurrencies out there, and they jockey for position over time in terms of user bitcoin investing 2022 20, market value, and influence. Some other important cryptocurrencies include (as of March 14, ) but are not limited to:

Investing in cryptocurrencies and other initial coin offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Because each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

Cryptocurrencies have been quite a sensation for the past few years; their adoption has been faster than the internet. By the end ofthere are expected to be around one billion global Bitcoin wallets.  This Figure is expected to continue increasing due to the worldwide reach of the internet.  Not only is bitcoin bitcoin investing 2022 20, but so are other cryptos like Ethereum, whose adoption has been faster than Bitcoin’s since   The growth of Distributed Finance (DeFi) is even more impressive, with the number of users increasing threefold since the start of This “risky” market has attracted more users, and as reaches its final quarter, investors are looking to for the best crypto investments 

For our newbies, we have a crypto course that you can access here, and for our old and new crypto lovers, we have put together a list of cryptos that are high flyers in and expected to return greater revenues in and beyond.  We have also identified a few newer cryptos with great potential.

Since we know you like to access the informations rapidly, here is the final ranking.

If you would like to learn more details about the ranking, please read the article. We also added in it 2 interesting investment surveys with thousands of answers about 1) What people think are the best cryptos to bitcoin investing 2022 20 in and 2) What is their portfolio size.

Surveys: Best cryptos and portfolio size

We decided to perform 2 surveys that are useful for readers to decide which crypto to invest in and how much to invest. The 2 sections below allow you to gather these informations.

Survey 1: In which crypto to invest?

Before we get to our ranking, we have one point to cover.

There is no established formula to determine the best cryptos for investment. Several questions can be asked to determine potential success, including:

• What is its adoption rate?
• Is this crypto filling a critical need?
• Does the crypto have several competitors?
• Are there bitcoin investing 2022 20 plans for near future updates?
• How is this crypto perceived by investors?

In order to answer the last question, we are conducting a poll with our readers (there are 17’+ answers !!)

How do you perceive the future for the most popular cryptos?

The survey below lists 30 of the top cryptos by market cap.

We hope this survey was interested and that it gave you a good “feeling” of what the mass of people/investors are thinking.

Survey 2: How much to invest?

This second and last survey (before the ranking of best cryptos for ) aims to make us understand what are the standards between people on how much to invest in crypto. You can use this result to give you indications on how much money you could allocate to you portfolio.

Same as before, once you have voted you’ll be able to access the results

Learn more about Cryptocurrency investing

If you have small/medium crypto experience, have a small portfolio (< $5’), we advise you to learn more about crypto investing via this Coursera course to:

• Build an effective strategy for incorporating Crypto into your investment plans
• Assess the risks of cryptocurrency in an investment portfolio

Best Cryptocurrencies to invest in

The following are the cryptos that are performing well this year and expected to do so in and beyond.

1-Ethereum (ETH)

Ethereum is a blockchain-based network with a medium of exchange, bitcoin investing 2022 20, the cryptocurrency Ether (ETH).  Ethereum is a top contender because of its smart contract functionality. Smart contracts are like paper contracts that will execute when all conditions are met but without an intermediary like a bank or other middleman.  Developers use the Ethereum network for the creation of several offerings like Decentralized Exchanges (DEXs), Security Tokens (which can replace paper stock certificates and other financial products), non-fungible tokens (NFTs) used for replacing art and other valuable items, as well as creating new cryptocurrencies entirely with Ethereum’s ERC token standard.

Ethereum is currently switching its consensus mechanism to a Proof of Stake (PoS) from its PoW mechanism with the ETH upgrade. Stakers bitcoin investing 2022 20 now provide their ETH as a staked investment for additional passive income.

Learn more about Ethereum: Ethereum Learn everything about Ethereum

What makes Ethereurm (ETH) a good investment?

• Ethererurm is the largest blockchain network for decentralized applications and has the second-largest market cap behind Bitcoin.
• With decentralized apps and the ERC token standard, Ethereum has many use cases and is the predominant choice for new coin development. 
• Ether is the only coin being discussed to surpass bitcoin bitcoin investing 2022 20 the near term, and all dApps, Smart contracts, security tokens, NFTs, or other products require ETH to run on bitcoin investing 2022 20 blockchain.
• Bitcoin currently requires other Level 2 solutions(like the lightning network) to run smart contracts. Even with its taproot upgrade, bitcoin investing 2022 20, Bitcoin will only provide simple, smart contract functionality, keeping Ethereum the better choice for this process.
• It has been a popular choice since and has shown its robust capability, but it still evolves to be better, with the ongoing ETH upgrade that changes to the much more efficient and faster PoS consensus mechanism empirical studies of returns earned by investment companies indicate that system of Shards. 
• Staking is an additional income generator(approximately 8% a year) for those holding ETH.
• Since EIP ETH has started to be burned, this bitcoin investing 2022 20 cause deflation increasing the price of ETH even faster.  With the current gas price of 61 GWEI, the ETH supply is estimated to reach M ETH in early February and begin to decline.

Ethereum (ETH) Near and Long Term Price Predictions

Digitalcoinprice has a high prediction by the end of the year of $5, which would be a return of 56% up from the current price of $3,  Their forecast through is a high of $16, USD in Novwhich equates to a % increase from today’s price and an annual return of %.  If we extend this rate out tothe price would be $25,

Finder also surveyed a group of 36 industry experts on the price and future of Ethereum, with a prediction made bitcoin investing 2022 20 July  

The upgrades of ETH are seen by most of the group as very positive, and the group sees an average end-of-year price of $4, bitcoin investing 2022 20, a December price of $17, and a December average of $71, a 41% annual rate of return, high because of some outliers up to $1M, the median prediction is $20,  A majority also believes that ETH will overtake BTC’s market cap by the end of and more widely transacted by

Though the two sources disagree about the rate of the rise, one says $71, (median $20,) while the other is predicted at $25, both agree that there will be an increase, but not to the predictions of BTC.

Related article: Ethereum vs Cardano: Which one is the best?

2-Cardano (ADA)

Cardano(ADA) is a third-generation crypto launched inbuilding on Bitcoin and Ethereum but more sustainable (environmentally friendly), scalable (faster), and more secure. Though it is not in the news like Bitcoin and Ethereum, it is considered a must-watch crypto by the Motley Fool.

What makes Cardano (ADA) a good investment?

• Cardano has solved the energy usage issue when comparing energy use:
  • Cardano: 6 gigawatt hours
  • Bitcoin: terawatt hours (21x Cardano)
  • Ethereum: 50 terawatt hours (8x Cardano) -> before ETH
• Cardano is already using the Proof of Stake consensus method, and holders can stake their ADA
• Another ETH founder Charles Hoskinson is part of Cardano
• Cardano has processed transactions per second (TPS), compared to bitcoins 7 TPS
• Cardano is already being used for Finance, Healthcare, and Agricultural projects
• Cardano has a total fixed supply of 45 billion ADA, bitcoin investing 2022 20, some cryptos are unlimited

Cardano bitcoin investing 2022 20 Near and Long term Price Predictions

In mid-September Cardano is at $

According to Coin Price Forecast’s latest long-term forecast, Cardano’s coin price will hit $3 by year-end and $ inbitcoin investing 2022 20, a % increase, and by $, a total of % up at an annualized %.

www.oldyorkcellars.com thinks that ADA will rise to $ then fall to $ by year-end, reach a high of $ in$ USD inand $ USD byan annualized return of %. We can estimate a price from this of $

GOV Bitcoin investing 2022 20 is again more optimistic and sees a 1-year ADA forecast of $ (% ) and the same huge dip expected in Janand a 5-year ADA Forecast of $, a % annualized return.

With our three predictions averaged, we have an expected ADA annual return of % to

3-Bitcoin (BTC)

Bitcoin was the first cryptocurrency created in by a person or group with the pseudonym Satoshi Nakamoto.  Like most other cryptocurrencies, BTC runs on blockchain ledger technology, a complex network of thousands of computers. Bitcoin is kept secure through a consensus mechanism (the process used by computers on a blockchain to verify the correctness of data on the ledger) called Proof-of-Work (PoW). BTC transactions are relatively fast and economical, with a maximum bitcoin investing 2022 20 of about seven transactions per second (TPS) and a new block created in about 10 minutes. Unlike government-issued (fiat) currencies, BTC transactions do not require users to provide private financial or identifiable personal information

Bitcoin remains bitcoin investing 2022 20 most prominent and second fastest growing cryptocurrency with a Sep. market cap of $ billion bitcoin investing 2022 20 a price of over $45, BTC saw the highest-ever bitcoin investing 2022 20 of around $64, on April 14^th,    

What Makes Bitcoin a Good investment?

• With the largest market cap and first-mover advantage, Bitcoin is by far the most well-known crypto. When people think of crypto, the first thought is of Bitcoin. 
• Bitcoin’s acceptance and use are steadily increasing. El Salvador became the world’s first country to accept Bitcoin as a national currency giving Bitcoin evermore legitimacy.
  • Blockchain Empirical studies of returns earned by investment companies indicate that compiled data and found bitcoin investing 2022 20 in the first half ofas many asBitcoin addresses are being created daily, totaling 88, and steadily increasing.  And according to a second-quarter earnings report from Cash App (a platform to buy and trade cryptocurrency), their gross profits for Q2 more than tripled to $55 million from $17 the prior year, with no expectation of slowing soon. 
  • Bitcoin is the crypto choice for Store of Value (SoV), considered an inflation-proof asset similar to gold. 
  • SoV, combined with Bitcoin’s liquidity and the lack of any ties to the global financial system, makes Bitcoin well suited for macro investment. Unlike stocks that require brokers, Bitcoin can be easily bought and traded on several exchanges with nearly immediate transaction completion.
  • Bitcoin (and other cryptos) provide additional diversification to a portfolio and has historically outperformed the stock market since inception (though these returns will likely continue to decelerate). 

We believe that the adoption of Bitcoin is a good indicator of the rate of the price increase, as adoption starts to level off, the price will stop increasing or may fall, but until then will grow. 

Bitcoin (BTC) Near and Long Term Price Predictions

Many Bitcoin price predictions are circulating for a Bitcoin.  On the high end, billionaire venture capitalist and Bitcoin investor Tim Draper predicted in June that Bitcoin will reach $, by early And the CIO of FiCAS AG Swiss, Ali Mizani Oskui predicts $K between Dec. and March   Ali Mizani’s past predictions have been accurate, but bitcoin investing 2022 20 may be off this time. However, Bloomberg did publish an April report with an eye-popping End of Year Prediction of $,

The Website www.oldyorkcellars.com has a more conservative prediction yet a potential 66% return by year-end of $75,

And www.oldyorkcellars.com sees a year’s high prediction of $90, USD in Feb, bitcoin investing 2022 20.  

Statistician and Polymath Sir Francis Galton realized bitcoin investing 2022 20 that there is a “wisdom of crowds,” and a group’s average prediction is usually quite accurate.  On Sep. 10^th, the Personal finance website www.oldyorkcellars.com published its most recent results of a survey of 42 crypto and finance industry experts (conducted June 21^st, ) on how Bitcoin will perform over the next decade. They had a year-end prediction of $66, but believed that by it would reach $, and those holding to will see over bitcoin investment uk hotel million.

It should be noted that bitcoin investing 2022 20 skew the above-average prediction, and if we look at the median price prediction, the forecast comes down to $, still respectable. If we see $, bythat is an annualized return of about 60%, mayweather money earned for fight it would need to maintain a 65% increase yearly to be million in (29% if we assume the median $,).

To learn bitcoin investing 2022 20 to invest in cryptocurrency or Bitcoin, we advise you to read our crypto investing course available HERE.

Start to buy cryptos with the best platforms

4-Solana (SOL)

Solana may be the choice for to it is up % in the past 30 days and 13,% YTD. It is already reaching the 7^th rank for market cap at $ billions. It competes with Cardano and Ethereum for the best smart contract platform. NFTs are the main reason behind Solana’s rise with its native NFT marketplace.

What makes SOL a good investment?

• Solana made a big move into NFTs with its Degenerate Apes, a digital collection of costumed apes that features various traits, bitcoin investing 2022 20, glasses to sandwiches, and different degrees of rarity (you might not “get it” but it is big for now)
• It has already attracted over projects, and several are DeFi projects, removing the bank as a middleman.
• It is considered an ETH alternative, which programmers are looking for; it may not kill ETH but bitcoin investing 2022 20 possible for competition.
• Solana has created a wormhole bridge between networks, which is a highly desirable trait because networks can rarely work together.  Solana says its next step will be to connect Terra (LUNA) and the Binance Smart Chain.
• Solana claims it can process over 50, transactions per second (TPS) at the cost of less than $ per transaction.

Solana (SOL) Near and Long-Term Price Predictions

In mid-SeptemberSolana is at $

According to Coin Price Forecast’s latest long-term forecast, Solana’s coin price will hit $ by year-end and $ in Reaching $4, ina % increase, and by $6, bitcoin investing 2022 20, a total 3,% up at an annualized %.

www.oldyorkcellars.com has a more conservative view thinking that SOL will rise to $ then fall to $ by year-end, reach a high of $ USD in$ USD inand $ USD byan annualized return of %.  We can estimate a price from this of $

GOV Capital is again more optimistic and sees a 1-year SOL forecast of $ (%) and a similar huge dip expected in Janand a 5-year SOL Forecast of $, a % annualized return.

It should be noted that JP morgan has warned its clients about the recent Solana price climb.

With our three predictions averaged, we have bitcoin investing 2022 20 expected SOL annual return of % to

5-Polkadot (DOT)

Polkadot is a Parachain blockchain network that has connected various blockchains that do different functions but make them work together. Polkadot, bitcoin investing 2022 20, like Ethereum, allows developers to build apps and smart contracts. The relay chains of Polkadot allow communication of dApps with other blockchain networks. Due to the interoperability of Polkadot, it has become effortless to transfer assets between different blockchains, and the potential transaction speeds Polkadot has are the best in the industry (over ,).

What Makes Polkadot a Good Investment?

• Polkadot can talk to other networks, including Ethereum.
• Polkadot has a growing programmer base, in a webinar, Keith Bliss (President Capital2Markets) discussed its adoption, “Polkadot is an Ethereum competitor, and many programmers are using it considering it safer. It allows them to build their own blockchains.”
• Polkadot addresses scalability, a major blockchain issue. Polkadot’s parachains reduce congestion. Bitcoin investing 2022 20 enhanced feature also makes it a good investment choice.
• Vitalik Buterin, one of Polkadot’s founders, also co-founded Ethereum, giving it a strong foundation and immediate gravitas.

Polkadot (DOT) Near and Long Term Price Predictions

In mid-SeptemberPolkadot is priced at $  Several experts are optimistic for Polkadot’s future.  According to Coin Price Forecast’s latest long-term forecast, Polkadot price will hit $50 by the middle of and then $75 by the end ofseeing a % increase to in but then dropping back to ina modest % annualized return.  GOV Capital is more optimistic and sees a 1-year DOT forecast of $ but a huge dip expected in Janbitcoin investing 2022 20, and a 5-year DOT Forecast of $, a % annualized return.

www.oldyorkcellars.com thinks that DOT will rise to $ by year-end, $ in$ USD inand $ USD byan annualized return of %.

how to invest in gold etf through icicidirect price prediction ">

Combined, the Polkadot predictions are quite spread bitcoin investing 2022 20, but if we take the average of the three, we get an annualized return of %, which would be a $ price in and a $ price in

6-Binance Coin (BNB)

The Binance Coin (BNB) is the cryptocurrency used for trading and paying fees on the Binance crypto exchange. BNB can also be traded for other cryptocurrencies such as BTC or ETH.

What makes BNB a good investment?

• Binance Coin comes with a variety of applications and benefits. At its launch init was used merely for trading. Now as the 4^th highest ranked coin by market cap ($70billion), it is essentially an investment in Binance, the largest cryptocurrency exchange in the world.
• BNB is now the way to pay for goods and services and transactions fees on the Binance Smart Chain.
• Additional projects are coming for BNB, which should continue to increase the price and demand. After Binance Smart Chain, more projects are coming up, putting BNB in the list of top cryptocurrencies with more than a $ billion market cap and a wide range of secure applications making it better for investment.

Binance Coin (BNB) Near and Long Term Price Predictions

According to Coin Price Forecast’s latest long-term forecast, Binance coin price will hit $ by year-end and $ in the middle ofa % increase, by $1, a total % up at an annualized %.

www.oldyorkcellars.com thinks that BNB will rise to $ then fall to $ by year-end, reach a high of $ in$1, USD inand $1, USD byan annualized return of %.

bitcoin investing 2022 20 height="" src="www.oldyorkcellars.com" alt="binance coin price prediction ">

GOV Capital is again more optimistic and sees a 1-year Bitcoin investing 2022 20 forecast of $ but a huge dip expected in Janand a 5-year BNB Forecast of $, a % annualized return.

With our three predictions averaged, we have rare gold coins investment expected BNB annual return of % to

Still curious about other ways to invest in crypto?

Would you like to see the list for ? : Top 20 cryptocurrency to invest in

Other Promising Cryptos

Though we expect good things from the six cryptos above, it is always useful to consider some honorable mentions for the probable best cryptos in

• Uniswap (UNI) is the 12th largest crypto by market cap ($Billion), Its current (September ) price is $  Uniswap is the fourth largest exchange in the crypto space, allowing investors to instantly swap their tokens at the current market price without setting a “buy” or “sell” price.
• Dogecoin (DOGE) the long-term prospects are not excellent for DOGE; however, it may still make some short-term gains as bitcoin investor ervaringen new york has in   There is no limit on the number of creationed DOGE coins which means it has inflation not usually good for a crypto.  Its market cap is still over $32 billion. And at a price of $, is up from $ YTD.

Some longshots

• Swipe (SXP) is a new ERC token with a market cap of $ million. Binance acquired Bitcoin investing 2022 20 in In Septemberthe market price bitcoin investing 2022 20 one Swipe (SXP) is $, having had a wild ride since $ of Jan, 1.
• www.oldyorkcellars.com (KAVA) is a decentralized platform with a market cap of $ million. KAA enables its users to access a wide range of decentralized financial services. The current (Sep ) market price of KAVA is $, up from $ at the beginning of the year.
• A few other ALT coins with potential to perform well in the coming years are www.oldyorkcellars.com (FET), SelfKey (KEY), bitcoin investing 2022 20, Polygon (MATIC), bitcoin investing 2022 20, and ChainLink (LINK).

Conclusion

Many cryptocurrencies have great potential and have allowed their investors to make huge returns in BTC and ETH have seen their highest-ever prices this year, and other ALTs like Solana have jumped thousands of percent. will likely see other incredible moves like these. 

Cryptocurrency investing requires analysis, patience, and quite a bit of luck, bitcoin investing 2022 20. We recommend not investing more than you can afford to lose in any single crypto and expect significant increases or declines with all crypto.  It may be best to have a basket of various cryptos to smooth these changes but even this still has risks. If you are going to invest, understand the market, act wisely, and believe in yourself and your investment, hope for a big gain but be willing to take a loss.

Invest Wisely, Earn Returns Fearlessly!

• Portfolio diversification is a universally accepted key to investing — especially in rocky years.
• Mark Yusko, founder of Morgan Creek Capital, shared his four-part investing strategy.
• Here's how to handle investments in stocks, crypto, fixed income, and commodities.

Mark Yusko, founder of North Carolina-based investment advisory firm Morgan Creek Capital, agrees with two universally accepted tenets of investing: keep a long time horizon, and diversify. But his views on how to do that differ from the consensus.

In Yusko's "all-weather portfolio," which is built for the "stormy seasons" that may bring, there's room for both gold and digital gold, for ultra-high-risk Chinese technology stocks and rock-solid pipeline companies. It's an unorthodox mix, and it's not a recipe for getting rich quick — which is just fine with Yusko.

"People should really think about portfolios with an annual and multiyear view as opposed to the day trading that goes on," Yusko told Insider in a recent interview.

No annual view of what's ahead in would be complete without an opinion on how the Federal Reserve will handle inflation that's nearing year highs. Whether the US central bank can unwind its pandemic-era emergency policies while keeping price growth in check and appeasing investors is a key storyline to watch this year, Yusko said.

"​​We are at the tail end of, really, a historic period of liquidity provision by global central banks," Yusko said. He continued: "The whole world is awash with liquidity. And that had an impact on the valuations of all assets from stocks to fixed income, to currencies, to commodities, to housing prices, to collectibles, to cryptocurrencies. Everything was in this wild bull market over the past 18 to 24 months."

Keeping up with the market's twists and turns can be exhausting for investment advisers — not to mention retail investors trying to build a winning portfolio. To simplify this complex landscape, Yusko told Insider about his outlook for stocks, fixed income, currencies, cryptocurrencies, and commodities — and specific steps investors can take to achieve diversification.

Stocks

For years, investing in a broad-based index of stocks was a nearly foolproof strategy. Simply mirroring the S&P , which has returned between 16% and 29% annually over the past three years, proved to be a profitable tactic.

But the Fed's decision to take its foot off the proverbial gas pedal and scale back its easy money policy will make this dynamic a thing of the past, in Yusko's view. It's time to get picky about stocks.

"We believe that US equities are highly overvalued, particularly FANGMAN stocks: Facebook, Amazon, Netflix, Google, Microsoft, Apple, and Nvidia," Yusko said. "So we think the high growth names are going to struggle in a risk-off environment, a liquidity drain environment."

Instead, Yusko is interested in a pair of trades with recent returns that couldn't have been more different: Energy producers in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which rose nearly 64% last year, and Chinese technology stocks in the KraneShares CSI China Internet ETF (KWEB), which tumbled by % in

Energy stocks are coming off an outstanding year — the sector rose 53% in — but Yusko sees more gains for the sector as oil prices stabilize thanks to steadily rebounding demand. He said his favorite name in the space is Diamondback Energy (FANG), which is one of the largest holdings in the aforementioned XOP exchange-traded fund.

There wasn't just one reason Chinese stocks had a brutal , but there is a common thread: the Chinese government. Increasingly hostile rhetoric and actions from the nation's authoritarian leadership resulted in mammoth fines levied against tech giants, stringent compliance burdens, and even the upheaval of entire industries like after-school tutoring.

But major players in the industry, including Alibaba, Tencent, and www.oldyorkcellars.com, are value plays — not value traps, in Yusko's view. Caution is warranted, but the space is brimming with opportunity.

Fixed income

On the fixed income front, investors will need to search high and low to find yield. In a high-inflation regime where interest rates are rising, Yusko said US Treasuries are falling out of favor.

"I probably wouldn't own traditional bonds because I worried about rising interest rates," Yusko said. "So I would own bond substitutes."

One alternative to investment-grade bonds is the ALPS Alerian MLP ETF (AMLP), which holds master limited partnerships — publicly traded entities that are taxed as partnerships instead of corporations. Names in the exchange-traded fund primarily come from the energy sector.

"These are the pipeline companies, the infrastructure companies, that transport hydrocarbons — oil and gas — and they are poised to just gush cash this year," Yusko said. "It's got a % yield, so triple what you can get, almost quadruple what you can get in traditional bond markets, double what you get in high yield. And so AMLP should be a big chunk of your bond bucket."

Another way to find fixed income is in Barings BDC (BBDC), which is an externally managed, closed-end investment firm that's regulated as a business development company. In essence, it lends to small businesses and thus is tied to the strength of the economy, Yusko said.

"We think it has a tailwind as economies heal and we get back to reopening after the Omicron wave," Yusko said.

But what makes Barings BDC most attractive, in Yusko's view, is its 8% dividend — especially in a world where the year US Treasury note yields %.

Currencies and cryptocurrencies

Turbulence may hit financial markets in as the Fed reels back its emergency monetary policy. He advises against owning the dollar, yen, or euro, which he believes will weaken.

"In times of stress, you want to own currencies that are not fiat," Yusko said. "I'd own cryptocurrency instead, because I think as the currencies — fiat currencies — weaken, cryptocurrencies will continue to appreciate."

For those that can stomach the wild volatility that cryptos inevitably bring, Yusko prefers to get exposure through Grayscale's Bitcoin Trust (GBTC), which he noted provides up to a 20% discount on the underlying assets, and Ethereum Trust (ETHE). Annual fees are steep at 2% and %, respectively, but the trusts allow investors to buy into them from their brokerage accounts.

Commodities

Some investors believe bitcoin is for millennials and Gen Zers, while gold is for baby boomers. But there's no reason the two assets should be mutually exclusive, Yusko said.

It's been a rough decade for the yellow metal. Gold prices are up just % since January and have barely budged in the past year — despite inflation that's hit year highs. What should, in theory, have been a once-in-a-generation catalyst for gold instead did little to move the needle.

But Yusko spies an opportunity that can only be described as golden. The SPDR Gold Trust (GLD) and the VanEck Gold Miners ETF (GDX) are his favorite ways to play the space.

"The price of gold is depressed, but the relative price of the mining companies is even more depressed," Yusko said.

In addition, Yusko thinks the Invesco DB Base Metals Fund (DBB) could take off as a massive shift to electric vehicles drives demand for base metals like lithium and cobalt.

Bitcoin has not only been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network, but has also become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spinoffs.

What Are Cryptocurrencies?

Before we take a closer look at some of these alternatives to Bitcoin (BTC), let’s step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money that takes the form of tokens or “coins.” Though some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.

The “crypto” in cryptocurrencies refers to complicated cryptography that allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important “crypto” feature is a common commitment to decentralization; cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance (often, although not always, through a process called mining) and other controls.

Cryptocurrencies are almost always designed to be free from government manipulation and control—although, as they have grown more popular, this foundational aspect of the industry has come under fire. The cryptocurrencies modeled after Bitcoin are collectively called altcoins, and in some cases, shitcoins, and have often tried to present themselves as modified or improved versions of Bitcoin. Though some of these currencies may have some impressive features that Bitcoin does not, matching the level of security that Bitcoin’s networks achieve largely has yet to be seen by an altcoin.

Below, we’ll examine some of the most important digital currencies other than Bitcoin. First, though, a caveat: It is impossible for a list like this to be entirely comprehensive. One reason for this is the fact that there are over 18, cryptocurrencies in existence as of March Though many of these cryptos have little to no following or trading volume, some enjoy immense popularity among dedicated communities of backers and investors.

Beyond that, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow. Though Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than BTC. It’s common, for instance, for analysts to attribute a great deal of importance to ranking coins relative to one another in terms of market capitalization. We’ve factored this into our consideration, but there are other reasons why a digital token may be included in the list.

Types of Altcoins

Cryptocurrencies

Cryptocurrencies are intended for payments, transmitting value (akin to digital money) across a decentralized network of users. Many altcoins (i.e., those that are not Bitcoin or sometimes Ethereum) are classified in this way and may sometimes be called value tokens.

Tokens

There are also blockchain-based tokens that are meant to serve a different purpose from that of money. One example could be a token issued as part of an initial coin offering (ICO) that represents a stake in a blockchain or decentralized finance (DeFi) project. If the tokens are linked to the value of the company or project, they can be called security tokens (as in securities like stocks, not safety).

Other tokens have a particular use case or function. Examples include Storj tokens, which allow people to share files across a decentralized network, or Namecoin, which provides decentralized Domain Name System (DNS) service for Internet addresses. These are known as utility tokens.

Today, while many users of crypto understand and appreciate these differences, traders and lay investors may not notice the difference because all categories of token tend to trade on crypto exchanges in the same way.

1. Ethereum (ETH)

The first Bitcoin alternative on our list, Ethereum (ETH), is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party. The goal behind Ethereum is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This aspect makes the implications for those in some countries more compelling because those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products. 

The applications on Ethereum are run on ether, its platform-specific cryptographic token. Ether (ETH) is like a vehicle for moving around on the Ethereum platform and is sought mostly by developers looking to develop and run applications inside Ethereum, or now, by investors looking to make purchases of other digital currencies using ether. Ether, launched in , is currently the second-largest digital currency by market capitalization after Bitcoin, although it lags behind the dominant cryptocurrency by a significant margin. Trading at around $2, per ETH as of March 14, , ether’s market cap is less than half of bitcoin's.

In , Ethereum launched a presale for ether, which received an overwhelming response; this helped to usher in the age of the ICO. According to Ethereum, it can be used to “codify, decentralize, secure and trade just about anything.” Following the attack on the decentralized autonomous organization (DAO) in , Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC).

In December , Ethereum transitioned its consensus algorithm from proof of work (PoW) to proof-of-stake (PoS). This move is intended to allow Ethereum’s network to run itself with far less energy and improved transaction speed, as well as to make for a more deflationary economic environment. PoS allows network participants to “stake” their ether to the network. This process helps to secure the network and process the transactions that occur. Those who do this are rewarded with ether, similarly to how an interest account works. This is an alternative to Bitcoin’s PoW mechanism, by which miners receive more BTCs for processing transactions.

2. Litecoin (LTC)

Litecoin (LTC), launched in , was among the first cryptocurrencies to follow in the footsteps of Bitcoin and has often been referred to as “silver to Bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate and former Google engineer.

Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses scrypt as a PoW, which can be decoded with the help of consumer-grade central processing units (CPUs). Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and thus offers a faster transaction confirmation time.

Other than developers, there are a growing number of merchants that accept Litecoin. As of March 14, , Litecoin has a market capitalization of $ billion and a per token value of around $, making it the 21st-largest cryptocurrency in the world.

3. Cardano (ADA)

Cardano (ADA) is an “Ouroboros proof-of-stake” cryptocurrency that was created with a research-based approach by engineers, mathematicians, and cryptography experts. The project was co-founded by Charles Hoskinson, one of the five initial founding members of Ethereum. After having some disagreements with the direction that Ethereum was taking, he left and later helped to create Cardano.

The team behind Cardano created its blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project have written more than papers on blockchain technology across a range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano seems to stand out among its PoS peers as well as other large cryptocurrencies. Cardano has also been dubbed the “Ethereum killer” because its blockchain is said to be capable of more. That said, Cardano is still in its early stages. Though it has beaten Ethereum to the PoS consensus model, it still has a long way to go in terms of DeFi applications. 

Cardano aims to be the world’s financial operating system by establishing DeFi products similar to Ethereum's as well as providing solutions for chain interoperability, voter fraud, and legal contract tracing, among other things. As of March 14, , Cardano has the eighth-largest market capitalization at $ billion, and one ADA trades for around $

4. Polkadot (DOT)

Polkadot (DOT) is a unique PoS cryptocurrency aimed at delivering interoperability among other blockchains. Its protocol is designed to connect permissioned and permissionless blockchains as well as oracles to allow systems to work together under one roof. Polkadot’s core component is its relay chain, which allows the interoperability of varying networks. It also allows for parachains, or parallel blockchains with their own native tokens for specific-use cases.

Where Polkadot differs from Ethereum is that rather than creating just dApps on Polkadot, developers can create their own blockchain while also using the security that Polkadot’s chain already has. With Ethereum, developers can create new blockchains but need to create their own security measures, which can leave new and smaller projects open to attack because the larger a blockchain, the more security it has. This concept in Polkadot is known as shared security. 

Polkadot was created by Gavin Wood, another member of the core founders of the Ethereum project who had differing opinions about the project’s future. As of March 14, , Polkadot has a market capitalization of roughly $ billion, and one DOT trades for $

5. Bitcoin Cash (BCH)

Bitcoin Cash BCH holds an important place in the history of altcoins because it is one of the earliest and most successful hard forks of the original Bitcoin. In the cryptocurrency world, a fork takes place as the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be made due to general consensus; the mechanism for this process varies according to the particular cryptocurrency.

When different factions can’t agree, sometimes the digital currency is split, with the original chain remaining true to its original code and the new chain beginning life as a new version of the prior coin, complete with changes to its code. 

BCH began its life in August as a result of one of these splits. The debate that led to the creation of BCH had to do with the issue of scalability; the Bitcoin network has a limit on the size of blocks: 1 megabyte (MB). BCH increases the block size from 1MB to 8MBs, with the idea being that larger blocks can hold more transactions within them, and the transaction speed would therefore increase. It also makes other changes, including the removal of the Segregated Witness protocol that impacts block space.

As of March 14, , BCH has a market capitalization of around $ billion and a value per token of $

6. Stellar (XLM)

Stellar (XLM) is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. Huge transactions between banks and investment firms—typically taking several days, involving a number of intermediaries, and costing a good deal of money—can now be made nearly instantaneously with no intermediaries and cost little to nothing for those making the transaction.

Though Stellar has positioned itself as an enterprise blockchain for institutional transactions, it is still an open blockchain that anyone can use. The system allows for cross-border transactions among any currency. Stellar’s native currency is Lumens (XLM). The network requires users to hold Lumens to be able to transact on the network.

Stellar was founded by Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple protocol. He eventually left his role with Ripple and went on to co-found the Stellar Development Foundation. Stellar Lumens have a market capitalization of about $ billion and are valued at around 18 cents as of March 14,

7. Dogecoin (DOGE)

Dogecoin (DOGE), seen by some as the original “memecoin,” caused a stir in as the price of the coin skyrocketed. The coin, which uses an image of the Shiba Inu as its avatar, is accepted as a form of payment by some major companies, including the Dallas Mavericks, Kronos, and—perhaps most notably—SpaceX, an American aerospace manufacturer owned by Elon Musk.

Dogecoin was created by two software engineers, Billy Markus and Jackson Palmer, in Markus and Palmer reportedly created the coin as a joke, commenting on the wild speculation of the cryptocurrency market.

The price of DOGE hit an all-time high of approximately cents during the week when Musk was scheduled to appear on Saturday Night Live. As of March 14, , Dogecoin’s market capitalization is $ billion and one DOGE is valued at around 11 cents, making it the 13th-largest cryptocurrency.

8. Binance Coin (BNB)

Binance Coin (BNB) is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalization. Those who use the token as a means of payment for the exchange can trade at a discount.

Binance Coin’s blockchain is also the platform on which Binance’s decentralized exchange operates. The Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes.  

Binance Coin was initially an ERC token that operated on the Ethereum blockchain. It eventually had its own mainnet launch. The network uses a PoS consensus model. As of March 14, , Binance Coin has a $ billion market capitalization, with one BNB valued at $

9. Tether (USDT)

Tether (USDT) was one of the first and most popular of a group of so-called stablecoins—cryptocurrencies that aim to peg their market value to a currency or other external reference point to reduce volatility. Because most digital currencies, even major ones like Bitcoin, have experienced frequent periods of dramatic volatility, Tether and other stablecoins attempt to smooth out price fluctuations to attract users who may otherwise be cautious. Tether’s price is tied directly to the price of the U.S. dollar. The system allows users to more easily make transfers from other cryptocurrencies back to U.S. dollars in a more timely manner than actually converting to normal currency. 

Launched in , Tether describes itself as “a blockchain-enabled platformto make it easier to use fiat currency digitally.” Effectively, this cryptocurrency allows individuals to utilize a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity often associated with digital currencies.

As of March 14, , Tether is the third-largest cryptocurrency by market capitalization, with a market cap of $ billion and a per-token value of (you guessed it!) $1.

Monero (XMR)

Monero XMR is a secure, private, and untraceable currency. This open-source cryptocurrency was launched in April and soon garnered great interest among the cryptography community and its enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven.

Monero has launched with a strong focus on decentralization and scalability, and it enables complete privacy by using a special technique called “ring signatures.” With this technique, a group of cryptographic signatures appears, including at least one real participant, but the real one cannot be isolated because they all appear valid.

Because of these exceptional security mechanisms, Monero has developed something of an unsavory reputation—it has been linked to criminal operations around the world. Though this is a prime candidate for making criminal transactions anonymously, the privacy inherent in Monero is also helpful to dissidents of oppressive regimes around the world.

As of March 14, , Monero has a market capitalization of $ billion and a per-token value of $

Honorable Mentions

We were only able to list 10 altcoins above, but there are many other important cryptocurrencies out there, and they jockey for position over time in terms of user bases, market value, and influence. Some other important cryptocurrencies include (as of March 14, ) but are not limited to:

Investing in cryptocurrencies and other initial coin offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Because each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

What are the best cryptocurrencies to invest in right now and in ? We spoke to some crypto experts to find out which digital tokens will likely perform well and why. You’ll see familiar names and a few promising altcoins that might be new to you. Whether you’re an experienced cryptocurrency investor or just crypto-curious, you’ll find ideas for your portfolio. (All values and prices are current as of Nov. 25, )

First, a recap of Crypto has had a wild ride this year. From increased institutional and retail adoption to China cracking down on crypto transactions, no other investment asset class has drawn so much market attention.

Through it all, bitcoin kept hitting all-time highs, and it remains the most valuable and widely talked-about cryptocurrency. Yet, on a year-to-date (YTD) basis, some of the top-performing cryptocurrencies have been altcoins like ethereum, up %, and cardano, up 1,%.

Investors seeking similar windfall-like returns must sift through thousands of cryptocurrencies with varying specialties and differing degrees of utility, adoption and promise. In such a diverse market—valued at more than US$ trillion—how can investors decipher which cryptocurrencies to invest in? We’ve saved you the trouble. Here’s what the experts picked.

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The best cryptocurrencies for

Ethereum (ETH) – The master of all

Ethereum, or ether, has handily outperformed bitcoin so far this year, a trend experts say will likely continue. Vijay Valecha, chief investment officer at financial consultancy firm Century Financial, says ethereum’s strong performance is underpinned by two key factors.

First, ether has a high level of real-use potential. It’s the native cryptocurrency of the ethereum blockchain, which is the main platform for smart contracts, a fast-growing segment of the cryptoverse.

Smart contracts are self-executing agreements that live on the blockchain and use ether as their transactional currency. Ethereum is forecasted to continue holding the largest share of the smart contracts market, which is projected to reach US$ million by  

Second, the recent ethereum upgrade, known as the Altair upgrade, has been well received by investors, as it makes the network more scalable and secure. The upgrade is in addition to the successful implementation of ethereum’s “London hard fork” a few months back. This change to ethereum’s underlying code led to record interest in its staking rewards program, says Valecha.

The London upgrade is a significant step in ethereum’s transition from a more energy-intensive proof-of-work (POW) model to an energy-efficient proof-of-stake (PoS) model, scheduled for completion in  

The blockchain&#;s use in decentralized finance (DeFi) applications will also help increase ether prices. “Ethereum use cases are wide-ranging, [including] providing innovative applications in decentralized finance, non-fungible tokens and gaming,” Valecha contends.

The price of the world&#;s second-largest cryptocurrency has grown more than % so far this year, rising to US$4,, outpacing rival bitcoin’s % increase for the same period.

Cardano (ADA) – Not all love lost

The sixth-biggest cryptocurrency by market cap, ADA is one of ’s most talked-about altcoins. The native coin of the cardano blockchain, ADA has gained more than 1,% so far this year to become one of the best-performing assets in the cryptosphere.

“Often dubbed as ‘ethereum killer’ by its core proponents, ADA is currently taking a breather as traders used the all-time high levels of US$3 [in September] to book profits,” says Valecha.

ADA started the year with much hype surrounding the launch of its Alonzo hard fork upgrade, which took place in September and dramatically expanded the token’s functionality.

Despite skeptics predicting a long delay, “the IOHK developer foundation announced a successful transition to a full-fledged innovative and smart contract platform based on the ADA blockchain,” Valecha notes. (IOHK is the company contracted to design, build and maintain the cardano platform.)

Moreover, the introduction of cardano’s Plutus scripts has enabled developers to build decentralized applications in the ecosystem. Plutus is a programming language for writing smart contracts in the cardano blockchain. “While the full functionality of it may take time, ADA will draw further investor attention and interest,” says Valecha.

These technical enhancements and the growing popularity and adoption of DeFi and smart contracts bode well for ADA’s current and continued demand, which could further fuel the coin’s price performance in

Avalanche (AVAX) – Revolutionary game changer

Avalanche is another rising star in the smart contracts arena. “The avalanche blockchain is a competitor to ethereum, as it provides a platform for building decentralized apps, and it is the fastest smart contracts platform in the industry with very low fees,” says Marcus Sotiriou, a trader at GlobalBlock, a U.K.-based asset broker.

Its native AVAX coin is used both as part of the avalanche consensus mechanism (a method of verifying transactions) and for paying network transaction fees.

In August , the Avalanche Foundation announced the Avalanche Rush program, earmarking US$ million in DeFi incentives to encourage more applications to move to the avalanche ecosystem.

The program has already attracted established crypto projects like Aave and Curve, Sotiriou notes. Since the announcement of Avalanche Rush, the total value locked (TVL)—the cumulative value of assets staked on the avalanche protocol—has jumped from US$ million to a whopping US$13 billion.

Building on the program’s success, the Foundation announced the Blizzard investment fund, allocating another US$ million to attract developers focused on DeFi, enterprise applications and NFTs to the avalanche blockchain.

“Avalanche is a newer crypto relative to the more established smart contract platforms,” says Sotiriou, but its incentive programs and growing institutional interest mean “AVAX could soon become a blue-chip cryptocurrency.”

For the year to date, the AVAX token has rung up a staggering 3,% gain, from US$ to US$ With more applications moving to its ecosystem, the price upswing is poised to continue in

Cosmos (ATOM) – Expanding the blockchain universe

Cosmos is another ethereum competitor, but with a unique functionality. It aims to achieve interoperability—the ability to connect various blockchains together. “Cosmos has a rapidly growing ecosystem of interconnected blockchains and aspires to be the internet of blockchains,” says Sotiriou.

The large and expanding Cosmos network, which now has around US$ billion of digital assets under management, runs on an energy-efficient proof-of-stake (PoS) protocol.  

The blockchain is powered by its native ATOM cryptocurrency, the 34th-largest crypto asset, up more than % YTD, from US$ to US$

“Cosmos is a safer bet as it is one of the most adopted smart contracts platforms, second only to ethereum,” asserts Sotiriou, adding that there are currently blockchains, apps and services in the cosmos ecosystem.

The growth of ATOM has largely been organic unlike that of other cryptocurrencies with large marketing budgets. “The growth of the asset’s price has been mainly due to its technological advancements rather than retail hype,” says Sotiriou.

With DeFi taking the blockchain world by storm, the Cosmos network is expected to continue growing in , as are the price and popularity of its ATOM token.

Solana – New kid on the blockchain

Solana has been a top performer in , bounding up the crypto ladder to become the fifth-most-valuable cryptocurrency in the world, with a market cap of US$65 billion, as of December 3. Widely touted as a challenger to ethereum, solana has clocked a staggering year-to-date return of more than 13,%, going from US$ to US$—the most gains by any cryptocurrency so far this year. In the same period, ethereum has risen %.

Solana was developed to help power decentralized finance use cases, decentralized apps and smart contracts. It runs on both proof-of-stake and proof-of-history models that enable swift and secure processing of transactions. SOL, solana’s native token, powers the platform.

The cryptocurrency boasts a burgeoning community of investors who liken solana’s technology to that of heavyweights such as bitcoin and ethereum. Bear in mind, though, that solana is a relative newcomer—it launched in —so it’s still unproven and can be quite volatile, which makes it a high-risk speculative bet at this point. Investors should understand the risks and only invest money they can afford to lose.

What about Ripple (XRP)?

The seventh-largest cryptocurrency, XRP is one of the shiniest tokens sitting at the top of the altcoin pyramid—it has increased over % YTD, from US$ to US$ The native coin of the ripple blockchain, XRP boasts incredibly fast transaction times under one second at next to no cost, making international settlements highly efficient.

Recently, however, some of XRP’s shine has worn off. It’s one of the few major tokens that haven’t matched their highs this year—and in XRP’s case, that can be largely attributed to a lawsuit launched in December by the U.S. Securities and Exchange Commission (SEC), which contends that Ripple Labs should have registered XRP as a security, not a currency. The case is still before the courts. Until a verdict is reached, investors would be wise to follow the sage advice of not investing more than they can afford to lose.

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Crypto caveats

These crypto assessments and predictions are based on the most current information available. However, things can change quickly and dramatically, as unforeseeable risks could emerge in the cryptosphere. As well, disruptive technologies, new trends and regulatory moves could have a significant impact on the fortunes of specific digital coins and the cryptocurrency market in general. 

Investors are advised to keep abreast of the latest crypto news, know their individual risk capacity and play well within it.  

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Decided Bitcoin is a good investment? You can buy BTC on eToro and Exodus.

A collective insanity has sprouted around bitcoin over the last decade. It&#;s hard to predict whether this cryptocurrency will become the global reserve currency or a store of value as widely accepted as gold. The thrill of riches or ruin leaves some investors wary, but others want to chase the chance for massive profits from investing in bitcoin. Bitcoin is certainly a revolutionary technology, and it&#;s much less risky in than it was in After becoming legal tender in El Salvador in , other countries will look to copy this move to attract innovation, while others may ban it entirely in attempt to save their fiat currency. Bitcoin has taken center stage in the global geopolitical climate, and looks like it may be the year of massive adoption.

Start with our guide to learn more and make your own judgment if bitcoin is a good investment for you.

Simply Put: Is Investing in Bitcoin Risky?

Similar to any speculative investment, buying Bitcoin obviously carries risk. Since its inception, Bitcoin was the 1st digital asset to beget the current ecosystem of cryptos. For quite a while, it grew an underground following of investors who saw its future as a possible replacement to the physical monetary system. Now Bitcoin has become a household name as institutions and governments develop ways to serve their customers growing demand for exposure.

Similar to how the internet was once a speculative investment, Bitcoin has received similar criticism. In reality, Bitcoin‘s current adoption rate outpaces that of the internet&#;s in , and millions of people now own Bitcoin.

In , El Salvador became the 1st country in the world to make Bitcoin a legal tender; Paraguay and other countries look to follow suit. El Salvador is also the first and only country to have Bitcoin in its treasury. As of early , El Salvador has 1, bitcoin. President Nayib Bukele has not been shy about announcing his purchases on Twitter.

As the traditional finance world realizes Bitcoin&#;s potential for disruption, they must choose either to adopt cryptocurrencies or face irrelevance. The personal decision to invest in bitcoin comes down to your appetite for risk and your perspective on the future of humanity. For example, Russia has stated they are looking into cryptocurrencies to lower their dependence on the US dollar. Bitcoin has the potential to disrupt the US Dollar in a massive way, and it is simply too big to be ignored at this point.

The main reason a traditional investor may want exposure to Bitcoin is to hedge against inflation and potentially the collapse of the fiat-based economy. Bitcoin&#;s volatility is a concern to may investors, however volatility is expected to decrease forever as institutions and governments enter the market with long-term interest.

Where to Invest in Bitcoin

Bitcoin is available from a multitude of centralized cryptocurrency exchanges. The safest exchanges are U.S. based, which also means you&#;ll need to comply with the SEC&#;s know your customer (KYC) guidelines. For tax purposes, making an exchange account will require inputting your personal information including your address and social security number. Once you&#;ve got this handy, you&#;re ready to get started.

Here are the steps to invest in bitcoin:

1. Open an account with Coinbase or another exchange from the list below.
2. Connect a bank account and deposit funds into your exchange wallet.
3. Buy Bitcoin (BTC).
4. Buy a wallet (optional).

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eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

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2. Coinbase

Coinbase makes it safe and simple for you to buy, sell and hold bitcoin. You can buy a portion of bitcoin with a $0 account minimum.

Pay for purchases conveniently using your debit card or by connecting your bank account. Owning bitcoin on this brokerage is as simple as creating an account, verifying your identity and buying your cryptos. Also, Coinbase has a program called Coinbase Earn that pays you to learn about cryptocurrencies. Coinbase Earn is a great way to add crypto to your portfolio without actually needing to invest your own money.

Take control of your bitcoin investment everywhere you go through the Coinbase mobile app. The brokerage allows you to hold onto your bitcoin, convert it into another crypto, spend it on expenses and transfer it to anyone, anywhere in the world.