Is it Profitable to Invest in Cryptocurrency Now?
It’s been several years that cryptocurrency has invaded the financial world. Some say cryptocurrency will eventually replace current fiat money, others believe it’s just a good investment. The thing that attracts people to cryptocurrency is decentralization. Digital money is governed by decentralized entities and can't be controlled by the government.
It also offers some advantages and is without a doubt an interesting option to invest in. Moreover, there are more than 500 digital items to invest in. In fact, there are a lot more types of digital coins out there, but not all of them are valuable. But is it still a good idea to invest in digital money? Let’s check out the top 5 investments in digital money and what advantages they can offer.
It's an obvious choice for most investors. It's the first cryptocurrency to see the world, its price is high and it is not affected by inflation, it's popular and most used. There are several advantages to investing in Bitcoin. The advantages are listed as follows:
● The autonomy of transactions.
● Peer-to-peer focus.
● High price.
● Secured transactions.
● No banking fees.
● Low transfer costs (especially when it comes to international transfers).
● The accessibility from any point.
Even though Bitcoin (as all other digital currencies) has suffered from a major crash of the market, it seems to be regaining ground. Bitcoin has recovered from the losses and now is at the same cost as it was before the crash which makes Bitcoin a great idea to invest in.
It's another great option to consider if you are planning to invest in digital coins. Litecoin's (LTC) price is at 129.35 (28/12/2020), and it seems that the currency is showing great results.
Only a month ago the cost of LTC was almost half of the current price, moreover, in October it was one of the largest digital items. And just a month later it has become the eighth biggest cryptocurrency in the world, so it makes sense to try and figure out whether it is worth investing in it.
The advantages of LTC are as follows:
● Offers a big block reward.
● Fast to mine (just two minutes per block).
● Keeps growing and developing.
So, if you are considering investing in digital items, LTC might be an extremely good idea. It shows significant growth over time, it is popular among users and the increased demand might affect the prices of the coin in the future. These factors make it a good idea to consider.
Bitcoin and Ethereum are the 2 most popular currencies. Ethereum (ETH) has a very strong market cap and is considered to be the second strongest cryptocurrency after Bitcoin. The price of Ethereum currently is $724.85 (28/12/2020) which is impressive especially considering that the costs significantly grew over time.
The increase in the price of buying ETH could be explained by the recognition that Ethereum has, the decentralized finance system that governs the chain, and by the successful upgrade to Ethereum 2.0.
The advantages of ETH are as follows:
● Recognition of the coin (the second token after Bitcoin),
● One of the most liquid cryptocurrencies in the world.
● Ethereum blockchain supports smart contracts.
● Offers decentralized mobile applications.
So, ETH is a good investment in 2021. Ethereum blockchain is one of the most developed systems that offer multiple useful options. It has become the basis for other digital tokens so the demand for ETH might be increasing even more overtime.
Any investment is a risk but sometimes it could be a very good deal. Digital tokens show great progress and stability. Even after some major crashes of the market, cryptocurrency is still capable of recovering and gaining ground.